029 Group SE

Earnings Release • Feb 24, 2005

News Details

Ad-hoc | 24 February 2005 08:30

Brainpower N.V.: Fourth Quarter and Full Year Results 2004

Brainpower N.V.: Fourth Quarter and Full Year Results 2004 Brainpower N.V.: Fourth Quarter and Full Year Results 2004 Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ Brainpower records first quarterly positive EBITDA* before extraordinary restructuring costs ·Revenues of 1.70 million Euros, 20% above previous quarter’s results ·1.60 million Euros operating expenses, down 9% from Q3 2004 ·EBITDA profit of 43,000 Euros before restructuring costs ·Important distribution agreement signed with Thomson Financial Brainpower N.V. (Deutsche Börse, Prime Standard: BPW), provider of analytic applications, technology and data management solutions to the investment management community, announces results for the Fourth Quarter and Full Year ended December 31, 2004. Revenues for the quarter equaled 1.70 million Euros, up 20% from the previous quarter. Full year 2004 revenues equaled 6.33 million Euros, up 4.8% from previous year’s results. In the fourth quarter operating expenses have been reduced to 1.60 million Euros, down 9% from the third quarter 2004. Operating expenses for the full year 2004 were 6.64 million Euros, down 29% over 2003. EBITDA* (earnings before interest, taxes, depreciation and amortization) for the fourth quarter, before restructuring costs, was positive for 43,000 Euros, compared to a loss of 634,000 Euros recorded in the third quarter 2004. The company also recorded progress in the area of third party distribution alliances that led to the recently announced agreement with Thomson Financial. Rocco Pellegrinelli, CEO of Brainpower, commented: `Brainpower registered its first profitable quarter, before restructuring costs, since the IPO. This marked an important turning point for the business and all the shareholders. The key objective for 2004 was to reach break-even in the fourth quarter. This was achieved and the company is now in a strong position to grow its business and to generate profits in the year 2005. We are also extremely happy for the recently signed distribution agreement with Thomson Financial as this important alliance fits into our strategy to leverage Brainpower’s products in more countries and with more customers via world-class third party channels. We expect significant additional revenues resulting from this agreement and look at 2005 as a year of strong growth and important results for Brainpower’s business`. Ermenegildo Beghé, CFO of Brainpower, added: `The Company reached significant cost savings in 2004 without impairing its technological and marketing potential. The cost structure at the beginning of 2005 looks coherent with the business development plans that the Company is pursuing. In November 2004 the Company successfully completed its first fund raising after the IPO: 1.7 million Euros were cashed through the issue of 1.450.000 new shares. The Company’s ability to effectively sustain its expected strong growth in 2005 is evidenced by the positive trend of the financial results, its increased visibility on financial markets and the availability of credit facilities’. Brainpower N.V. Herengracht 469 NL-1017 BS Amsterdam Niederlande ISIN: NL0000238228 WKN: 553169 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 24.02.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: The Company expects to release the full set of financial statements by the end of March. ‘This press release contains forward looking statements which involve risks and uncertainties. The actual performance, results and timing of the business of Brainpower N.V. could differ materially from the performance, results and timing discussed in this press release. This press release is not distributed in or into the United States of America.’ ABOUT BRAINPOWER Brainpower provides analytic applications, technology and data management solutions to the global investment management community. Brainpower’s distinctive approach to addressing the portfolio manager’s workflow delivers middle-office functionality and analytic power, and back-office reporting capabilities to the front office – on the fly. Customers include leading players in the fields of asset management, private banking and online financial services. Brainpower is currently represented in major financial centers including: Amsterdam, London, Lugano, Milan, New York and Zurich. For further information see: http://www.brainpowerweb.com or contact: Ermenegildo Beghé Chief Financial Officer Brainpower N.V. Tel : +41 91 985 7070 End of message (c)DGAP 240830 Feb 05