029 Group SE

Earnings Release • May 8, 2002

News Details

Ad-hoc | 8 May 2002 07:28

Brainpower N.V. english

Brainpower N.V. 1st Quarter Financial Results Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Brainpower N.V. 1st Quarter Financial Results for the period ended March 31, 2002 Revenue and Cost Targets Achieved – Revenues of Eur 1.94 million represents 42% increase over 1st Quarter 2001 – EBITDA losses before restructuring costs decline for 4th consecutive quarter – Operating costs reduced by Eur1 million from previous quarter – Net cash flow used in operations reduced by Eur 1.3 million – Total contract revenue backlog declined from Eur 9.7 to Eur 9.3 million Brainpower (Neuer Markt: BPW), provider of investment analysis and decision- support software tools for the investment community, today announces financial results for the quarter ended March 31, 2002. Rocco Pellegrinelli, Chairman and Chief Executive Officer of Brainpower, commented: “I am happy to report that the Company achieved both its revenue and operating cost targets for the quarter. Revenues of Eur 1.94 million represent an increase of 42% over the first quarter 2001 results. Operating costs were reduced by approximately Eur1 million from the fourth quarter last year.” “Our contract revenue backlog decreased slightly during the quarter to Eur 9.3 million, reflecting the fact that IT budgets remain tight with historically long sales cycles. We expect, however, that StockXceed and FundXceed, our new product offering announced last week, and our recently announced collaboration with Lipper will contribute to an increased number of contracts signed over the remainder of the year.” “During the quarter two clients, Redsafe.com and Easybroker, went live with online services that incorporate Brainpower’s analytics software. We also expanded our portfolio of third party sales and marketing agreements by executing an arrangement with Epheso, a CRM (customer relationship management) technology specialist based in Italy. New clients landed during the first three months include, among others, Skandia Leben in Switzerland and extended contracts with Commerzbank and Schroder Investment Management in Italy.” Bill Holwell, Chief Financial Officer, commented; “We are very pleased to announce that our cost reduction program has lead to a reduction of operating costs in the first quarter of approximately Eur 1 million which was in line with our goals.” “EBITDA losses (earnings before interest, taxes, depreciation and amortization) before restructuring costs were Eur 1.8 million for the first quarter, a modest improvement over the EBITDA losses in the fourth quarter of last year. This represents the fourth consecutive quarterly improvement and should continue to improve as revenues increase and the benefits of our cost cutting program are further realized.” “Brainpower ended the quarter with a cash and cash equivalents position of Eur 11.2 million, which is sufficient to fund operations until the Company reaches EBITDA breakeven. Shareholders equity as of March 31, 2002 was Eur 13.2 million. Our net loss was Eur 2.2 million for the quarter, which includes Eur 0.1 million of restructuring cost. end of ad-hoc-announcement (c)DGAP 08.05.2002 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 is a developer and supplier of investment analysis and decision support tools 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, Edinburgh, Frankfurt, Hong Kong, London, Lugano, Milan, Madrid, New York and Zurich. For further information see: http://www.brainpowerweb.com (English) or http://www.brainpower.de (German) Or contact: Curtis E. Fox Director, Communications & Investor Relations Brainpower N.V. Tel : +44 (0) 20 7392 7117 Email: cfox@brainpowerweb.com ——————————————————————————– WKN: 553169; ISIN: NL0000238228; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Hamburg, Hannover, Düsseldorf, Stuttgart und München 080728 Mai 02