Beta Systems Software AG

Annual Report • Mar 19, 2004

News Details

Corporate | 19 March 2004 07:01

Beta Systems announces audited results for the fiscal year 2003 – Part 2 of 2

Corporate-news announcement processed and sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Beta Systems announces audited results for the fiscal year 2003 – Part 2 of 2 – Revenue Beta Systems recorded total revenues of EUR 55.8 million in fiscal 2003. This corresponds to a year-on-year increase of EUR 10.7 million or 23.8%. The increase in license revenues of EUR 6.8 million was attributable principally to significant growth in new license sales of 85.8% to EUR 17.8 million (2002: EUR 9.6 million). To a large extent, this increase was a result of the takeover of the operating activities of Systor Security Solutions GmbH (SSSG), Cologne, and the integration of the new Security Administration Manager (SAM) product line. In fiscal 2003, the new SAM product line contributed sales revenues of EUR 10.3 million. This amount included license revenues of EUR 4.6 million. Accounting for EUR 8.5 million, the second component of license revenue – license upgrades – recorded a slight year-on-year decline (2002: EUR 9.9 million). Revenue increases achieved in the area of maintenance were due to the takeover of maintenance agreements for the SAM product line, and steady growth of Beta Systems’ installation base. Additionally, this area benefited from a low number of contract terminations of existing maintenance and service agreements, as well as from the conclusion of new maintenance agreements, which also covered the 7/24 service offering for remote-access administration of customer installations by Beta Systems. These positive factors were partially offset by the adverse effects of maintenance invoicing in Dollars, a direct result of the unfavorable Euro/Dollar exchange rate during 2003. At EUR 5.2 million, revenues from professional services (i.e. training and consulting) increased by 83.1% compared with the previous year (2002: EUR 2.8 million). Growth in this area was mainly attributable to solutions-oriented business operations acquired together with the SAM product line. – Gross Profit Based on higher license revenues, the gross margin on sales increased by 15.3% to EUR 40.6 million in fiscal 2003, compared with EUR 35.2 million in the previous fiscal year. The Company’s gross profit margin declined to 72.7% in fiscal 2003, from 78.0% in fiscal 2002. This was attributable chiefly to an increase in the cost of sales for licenses and maintenance. Royalties paid to third-party manufacturers of software integrated into SAM product solutions contributed to the above-mentioned increase. – Selling Expenses Selling expenses increased by EUR 1.2 million, from EUR 17.2 million in fiscal 2002 to EUR 18.4 million in fiscal 2003. This represents a year-on-year increase of 6.8%. The increase is due to the takeover of SSSG sales staff. As a percentage of total revenues, selling expenses decreased from 38.1% in fiscal 2002 to 32.9% in fiscal 2003. – General and Administrative Expenses General and administrative expenses decreased by EUR 0.4 million, from EUR 9.6 million in fiscal 2002 to EUR 9.2 million in the year under review. As a percentage of revenues, general and administrative expenses declined to 16.5% in fiscal 2003, following a ratio of 21.3% in fiscal 2002 that was attributable to a substantial proportion of fixed costs. – Research and Development Costs Research and development costs increased by 17.2%, from EUR 7.7 million in fiscal 2002 to EUR 9.1 million in 2003. The increase resulted from the integration of SAM development activities in Cologne. Research and development costs accounted for 16.2% of revenues in fiscal 2003 (2002: 17.1%). – Operating Income In the period under review, operating expenses including cost of goods sold, increased by EUR 7.0 million or 15.5%, compared with the previous year. Operating expenses amounted to EUR 52.0 million in fiscal 2003 (2002: EUR 45.0 million). Beta Systems recorded operating income of EUR 3.8 million in fiscal 2003, compared with operating income of EUR 0.1 million in 2002. This increase is the result of successful restructuring measures in the Storage Management unit and strict cost management directly aligned with revenue performance. – Interest Income and Other Income Interest income generated by the Group amounted to EUR 0.3 million in fiscal 2003. This performance was due to lower interest rates, in conjunction with a slight decrease in the average level of cash and cash equivalents compared with the preceding fiscal year. Other income generated by the Group in fiscal 2003 was EUR 0.7 million, compared with a figure of EUR 1.5 million posted in 2002. – Income before Tax and Income Tax Earnings before tax (EBT) increased by EUR 2.5 million to EUR 4.8 million in fiscal 2003, compared with earnings before tax of EUR 2.3 million in the preceding fiscal year. The EBT margin increased from 5.1% in fiscal 2002 to 8.6% in fiscal 2003. In the fiscal year 2003 Beta Systems recorded tax expenses of EUR 1.3 million (2002: EUR 2.0 million). A reversal of deferred tax liabilities led to a reduction of the Group’s total tax expenses. Based on EUR 4.8 million in income before tax, the resulting tax rate is 26.9%. – Net Income The Group recorded a net income of EUR 3.5 million in fiscal 2003, compared with EUR 0.3 million in the preceding fiscal year. This corresponds to earnings per share of EUR 0.89 (2002: EUR 0.08 per share). – Financial Position Total assets increased from EUR 54.7 million to EUR 62.1 million. Shareholders’ equity remained unchanged at 51.0% of the balance sheet total (2002: 51.0%). The increase in total assets was mainly attributable to the takeover of the operative business of SSSG. At December 31, 2003, the Company held cash and cash equivalents of EUR 14.8 million (2002: EUR 15.7 million).The decrease in cash and cash equivalents is attributable mainly to the acquisition executed at the beginning of the year. Due to the high level of revenues, particularly toward the end of the year, accounts receivable increased to EUR 26.1 million as of December 31, 2003 (2002: EUR 20.4 million). – Dividend Payment A dividend payment of EUR 0.25 per share has been planned for 2003, in addition to a special bonus of EUR 0.25 to mark the 20th anniversary of Beta Systems. Conference Call and Press Conference on Annual Results Further details on the audited results for the fiscal year 2003 will be made public on March 19, 2004, and will be further explained as part of a conference call and a press conference with Beta Systems’ Management. The conference call will take place at 11.00 CET under the telephone number +44 (0) 207 019 9504 (access code: “betasystems”). In addition, there will be an instant replay available for 24 hours following the call under +44 (0) 207 784 1024 (access code: 247397#). The press conference on annual results will take place at 13.00 CET at the Company’s headquarter in Berlin. There will be a webcast of this event under http://www.webpk.de/betasystems. Contact: Investor Relations – Arne Bassler – Beta Systems Software AG Tel.: +49 (0)30 726 118 -170, Fax: +49 (0)30 726 118 -881 e-mail: arne.bassler@betasystems.com end of message, (c)DGAP 19.03.2004 ——————————————————————————– WKN: 522440; ISIN: DE0005224406; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover und Stuttgart 190701 Mär 04