029 Group SE

Earnings Release • Feb 20, 2003

News Details

Ad-hoc | 20 February 2003 08:30

Brainpower N.V. english

4th Quarter and Full-Year Results for the period ended December 31, 2002 Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– 4th Quarter and Full-Year Results for the period ended December 31, 2002 Continued Improvement in Operating Results · Revenue up 19%, excluding EUR 1.5m from a software development contract in 2001 · EBITDA losses before restructuring costs 29% lower year-on-year · Cash used in operations reduced by 65% from previous quarter · Growing interest in world-class products released during 2002 Brainpower (Frankfurt: BPW), provider of investment analytics, attribution and decision support solutions to global asset managers, announces its results for the Fourth Quarter and Full-Year ended December 31, 2002. “Market conditions remained extremely challenging due to the persistent weakness in equity markets and the resulting caution amongst banks towards IT investments,” stated Rocco Pellegrinelli, Chairman and Chief Executive Officer of Brainpower. “Brainpower’s cost reduction program implemented in order to cope with this difficult environment continues to bear fruit as we successfully reduced both EBITDA losses and cash used in operations for the fourth consecutive quarter and for the full-year. EBITDA losses before restructuring costs were 27% below third quarter and 29% lower than full-year 2001. Revenue of EUR 1.85 million in the fourth quarter ended December 31, 2002 represented a decrease of 24% over the previous year’s fourth quarter revenues of EUR 2.4 million. Full-year 2002 revenues equaled EUR 7.55 million, representing a decrease of 4% over 2001. However, excluding revenue recognized in the prior year from a large software development contract, Brainpower’s revenues increased 10% over fourth quarter 2001 and 19% year-on-year. Throughout 2002 we continued to invest in R&D in order to strengthen both our competitive position and our value proposition. A new family of web-based products was launched (StockXceed and FundXceed) offering broader content and expanded functionality. These products raised the industry standard in terms of breadth and usability. The market reaction to the launch of these two products has been very positive and we experienced an expanding qualified customer pipeline in the fourth quarter.” Bill Holwell, Chief Financial Officer, commented: “While we continue to generate the majority of our revenues in Italy, Switzerland and the UK, we have achieved growth in other geographies, most notably in Germany, which accounted for 9% of total group revenues in the fourth quarter. At December 31, 2002, Brainpower’s total backlog of booked revenue to be recognized over 2 to 3 years was EUR 6.6 million. This was a reduction of EUR 1.6 million versus the total backlog of revenue at the end of the previous quarter. The total backlog of revenue to be recognized over the next twelve months totaled EUR 4.2 million. These reductions were due to the weakness in the e-broker market segment and difficult trading conditions impacting new business activity. Brainpower’s cash position as at December 31, 2002 was EUR 5.1 million compared to EUR 5.9 million at the end of the third quarter. The Company’s cash burn rate for the quarter was EUR 780,000 which, excluding restructuring costs, represents an improvement of EUR 882,000 versus the third quarter 2002.” end of ad-hoc-announcement (c)DGAP 20.02.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: “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 develops and supplies investment analysis and decision support solutions for investment professionals and online financial service providers. Brainpower’s solutions are differentiated by their advanced capabilities to support enhanced decision-making for investment professionals and their clients, including retail investors. 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, Frankfurt, Geneva, London, Lugano, Milan, Madrid, New York and Zurich. For further information visit: http://www.brainpowerweb.com(English)or http://www.brainpower.de(German), or Bill Holwell Chief Financial Officer Brainpower N.V. Tel : +44 (0) 20 7392 7100 Email: wholwell@brainpowerweb.com ——————————————————————————– WKN: 553169; ISIN: NL0000238228; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München und Stuttgart 200830 Feb 03