secunet Security Networks AG

Earnings Release • Nov 11, 2004

News Details

Corporate | 11 November 2004 08:01

secunet AG: Revenues considerably increased – Turnaround achieved in Q3

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– – Revenues increased by 25.8% versus last year to EUR 18.7 million – EBIT of EUR +0.6 million generated in the third quarter – Orders on hand nearly tripled versus last year – Targets for fiscal year 2004 confirmed [Essen, Germany, 5 November 2004] secunet Security Networks AG realised in the first nine months of 2004 a considerable plus in revenues: Compared to the same period of last year revenues have increased by 25.8 % from EUR 14.9 million in 2003 up to EUR 18.7 million in the current year. An isolated examination of the third quarter of 2004 even shows a plus by 79.3% versus the same period in 2003. The quarterly revenues rose from EUR 4.6 million in the previous year to EUR 8.3 million. The positive revenues development is due to the successful integration of the former Giesecke & Devrient subsidiary Secartis, which was acquired in April 2004, as well as a growing demand for services and products provided by secunet. “In the third quarter we successfully focussed our management capacities on secunet’s growth,” said Dr. Rainer Baumgart, CEO of secunet. “We realised the substantial growth in revenues by utilizing existing business relationships and by acquiring new customers. At the same time we benefit from the network of our new major shareholder Giesecke & Devrient.” The strong revenues growth supported by the efforts to reduce and control costs led to a turnaround in the earnings development. Thus secunet generated in the third quarter earnings before interest and taxes (EBIT) of approximately EUR 0.6 million. The profit after taxes in the third quarter amounted to just under EUR 0.4 million. Looking at the first nine months as a whole shows also a positive development. The company was able to cut its operating loss in half from over EUR 1.2 million as of 30 June 2004 to just under EUR 0.6 million as of 30 September 2004. “We achieved the turnaround in earnings development in the third quarter despite the still remaining burden of integrating Secartis,” comments Baumgart. “On the cost side we are able to realize efficiency gains already in the short run by streamlining the administrative functions of Secartis. We expect the sales synergies of the merger to show their full impact in the next year.” The financial result of secunet was positive (January to September 2004: EUR 45 thsd.), because secunet did not take out any loans. Taking this and taxes (EUR 166 thsd.) into account, secunet recorded a net result of minus EUR 0.4 million in the first nine months of fiscal year 2004 (January to September 2003: minus EUR 0.8 million). Earnings per share were minus EUR 0.06 (January to September 2003: minus EUR 0.12). The net result in the third quarter of 2004 amounts to EUR 0.4 million (Q3 2003: minus EUR 0.3 million); earnings per share for the third quarter of 2004 were EUR 0.06 (third quarter of 2003: minus EUR 0.05). As of 30 September 2004 cash and cash equivalents amounted to EUR 1.9 million, up almost EUR 0.4 million compared to 30 June 2004. As of 30 September 2004, the equity ratio of secunet is 57 %, which is an improvement of two percentage points compared to 30 June 2004. Orders on hand have been considerably increased in the third quarter. As of 30 September 2004, secunet had orders on hand worth EUR17.8 million. Hence orders on hand nearly tripled compared with the previous year figure (EUR 6.3 million). Due to the successful third quarter and the ongoing high orders on hand figure the management abides by its previously announced forecast for the fiscal year 2004: revenues in a range of EUR 25 to 30 million with a balanced result. A download of the complete 9-month report is available at www.secunet.com > Company > Investor Relations > Financial Reports. Contact: Dr. Kay Rathke Head of IR / PR secunet Security Networks AG Im Teelbruch 116 45219 Essen Germany Phone: +49 (0)2054 123 127 Fax: +49 (0)2054 123 456 E-Mail: presse@secunet.com end of message, (c)DGAP 11.11.2004 ——————————————————————————– WKN: 727650; ISIN: DE0007276503; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 110801 Nov 04