secunet Security Networks AG

Earnings Release • Aug 4, 2005

News Details

Corporate | 4 August 2005 07:44

secunet AG 6 Month Report 2005: sustained growth in revenues and earnings

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Revenues increase to EUR 16.4 million (+56%) – Net income for the period tops EUR 1 million – Orders on hand worth EUR 24 million – Guidance for 2005 confirmed [Essen, 4 August 2005] secunet Security Networks AG (ISIN DE 0007276503), leading European provider of IT high-security products and services, concluded the first half of 2005 with strong revenues growth and a net income of more than EUR 1.0 million. secunet increased its revenues in the first six months of 2005 to EUR 16.4 million, up just over 56% from the 2004 figure of EUR 10.5 million. Organically, i.e. without taking the 2004 acquisition of Secartis AG into account, which was not included in the scope of consolidation until April 2004, revenues rose by more than 36% compared to the previous year. Organic growth in the second quarter alone was over 43%. The positive performance in terms of earnings has also resulted in a sustained improvement of secunet’s profitability. The company boosted its earnings before interest and taxes (EBIT) to EUR 1.6 million. This compares to earnings of EUR -1.2 million in the first six months of 2004. secunet’s EBIT margin in the first half-year was 9.8%. Looking at the second quarter alone, secunet improved its EBIT to EUR 0.8 million, up from EUR -0.7 million in the second quarter of 2004. secunet achieved an EBIT margin of 8.7% in the second quarter of 2005. Earnings per share in the second quarter were EUR 0.09. In the first six months, secunet earned EUR 0.16 per share, compared to earnings per share of EUR -0.12 in 2004. “secunet has been generating consistently increasing revenues and positive earnings for the last year,” says Dr. Rainer Baumgart, chief executive officer of secunet Security Networks AG. “The consolidation strategy which we pursued in recent years is now bearing fruit.” As in the first quarter, the positive result is due to three factors: high capacity utilization, increased licensing revenues, and a disproportionately low increase in variable expense items compared to revenues. Personnel expenses rose by just over 23% year-on-year, from about EUR 6.8 million to EUR 8.3 million. In the second quarter, the increase in personnel expenses was just under 13%. At 207, the number of employees as of 30 June 2005 was almost unchanged compared to 30 June 2004 (211). The rise in personnel expenses is mainly due to the acquisition of Secartis AG in 2004. Amortization, depreciation and other operating expenses also grew slower than revenues. Cost of materials showed a strong increase of about 87%, from EUR 2.2 million in 2004 to just under EUR 4.2 million in 2005. This increase is caused by secunet’s project structure. The increase in other operating income compared to the same period last year is once again due to the reversal of provisions for follow-up costs from fiscal year 2004. A large portion of this operating income was already accounted for in the first quarter of 2005. Earnings before taxes for the first six months of 2005 were clearly positive at EUR 1.7 million, compared to earnings of EUR -1.2 million in the first half of 2004. Positive earnings of EUR 0.8 million were also recorded in the second quarter of 2005. The result for the first six months improved from EUR -0.8 million to EUR 1.0 million. Net income for the quarter (after tax) was EUR 0.6 million. With its comprehensive and in-depth expertise and cutting-edge developments, secunet is a respected partner in the market for high-security IT services and products. There is consistently strong demand for consulting services and solutions. Orders on hand at secunet as of 30 June 2005 amounted to about EUR 24 million. This represents an increase of 47% compared to last year’s figure of EUR 16.3 million. secunet also managed to boost orders on hand compared to 31 March 2005 (EUR 14.7 million). The positive results for the first six months of 2005, the high volume of orders and the continued, strong demand for high-security IT solutions are grounds for further optimism with regard to the future prospects of secunet. The board of management holds to its forecast of revenues of EUR 37 million with an EBIT margin of over 7% for fiscal year 2005. The 6-Month Report of secunet Security Networks AG in PDF format and further information is available at http://www.secunet.com . Contact: Dr. Kay Rathke Head of Investor Relations & Public Relations secunet Security Networks AG Kronprinzenstraße 30 45128 Essen/Germany Tel.: +49 (0)201 54 54-127 Fax: +49 (0)201 54 54-456 E-mail: presse@secunet.com http://www.secunet.com End of announcement (c)DGAP 04.08.2005 —————————————————————————— WKN: 727650; ISIN: DE0007276503; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 040744 Aug 05