DCI AG

Earnings Release • Mar 19, 2003

News Details

Ad-hoc | 19 March 2003 08:30

DCI Database english

DCI AG Publishes 2002 Business Figures Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– DCI AG Publishes 2002 Business Figures Earnings Continue to Improve Starnberg, March 19, 2003. Today DCI AG announced its results for the 2002 fiscal year. The Group’s consolidated annual earnings showed a 74-percent improvement over last year’s figures, with minus EUR 12,344,000 as opposed to minus EUR 47,284,000. One reason for this improvement was the sharp decline in goodwill depreciation from EUR 21,543,000 to EUR 2,000,000. Another was the cost cutting activities carried out as planned in 2002, which led to a sharp reduction in operation expenses. Cash consumption was lowered from EUR 25.8M in 2001 to EUR 6.8M in 2002. Sales revenues for 2002 amounted to EUR 12,344,000 as compared to EUR 16,114,000 in fiscal 2001. The decline was mainly due to DCI’s subsidiary Medien und Kommunikations GmbH (MuK), which failed to reach its targeted sales revenue contribution. It was this fact that ultimately led the Berlin company to file for insolvency. The operating earnings (EBIT) amounted to minus EUR 13,632,000 (versus minus EUR 48,531,000 in 2001). As of December 31, 2002, DCI has EUR 7.1M in consolidated liquid funds. The Group’s organizational structure has been tightened as part of a strict rationalization program, and its staff has been further cut back from 293 (December 31, 2001) to 96 (December 31, 2002). The company continues to maintain a strategic focus on its core business, with the consequence that the deficit performance of the Berlin Medien und Kommunikations GmbH is no longer supported. MuK filed for insolvency on December 11, 2002. DCI AG cleaned up its portfolio in 2002 so that it now almost exclusively offers goods and services for the sales side of its customers (TradeManager, Media). In this way the company enters a win-win situation by helping its customers’ sales departments to boost their sales revenue. True, company purchasing agents can also streamline their processes with the DCI solutions. But since this is not yet adequately rewarded by the market, DCI will expand its position as a “service provider for digital sales management” in 2003. end of ad-hoc-announcement (c)DGAP 19.03.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The latent potential in the TradeManager concept is substantial: the software program is completely developed and sales revenue can be scaled via the share of highly profitable earnings from licensing agreements. Interest among retail companies is very high and has increased considerably in recent months. This became apparent in the response to four nationwide product road shows carried out in February 2003 and in numerous conversations with decision-makers in the business world. TradeManager offers retailers an ideal vehicle for boosting their sales, particularly in a period of generally weak demand. There are signs this year that TradeManager will make a considerably larger contribution to sales revenue, and it may achieve its market breakthrough now that it has reached market maturity. DCI Medien enjoys market leadership in its segment of fax/e-mail push media and ITC retailing. Virtually all significant distributors and manufacturers from the ITC sector advertise via DCI Medien. By enabling aggressive marketing over every area, DCI Medien is a favorite among customers, especially in times of generally weak demand. DCI AG therefore assumes that DCI Medien’s contribution to the Group’s sales revenue will continue to increase in 2003. All in all, the company has consistently pursued the path it embarked on in 2003. The Group’s restructuring program has already been intensified, the first step being the removal of an executive echelon. Further process streamlining measures are currently underway. The annual report 2002 will be published by the end of March 2003. ——————————————————————————– WKN: 529 530; ISIN: DE0005295307; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hannover, München und Stuttgart 190830 Mär 03