Softline AG

Earnings Release • Sep 10, 2001

News Details

Ad-hoc | 10 September 2001 08:00

Softline AG english

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Softline Doubling Sales To 85m Euro Weak 4th quarter affects results – Groundwork for turnaround completed Offenburg, September 10. In spite of an unexpected market setback during the last quarter (April-June 2001), the Softline Group succeeded in more than doubling its sales with a plus of 103% over last year’s sales (financial year 00/01 ending 30 June), raising it to 85.6m (42.0m) Euro. An unforeseeable market slump of extreme fierceness in the 4th quarter and a general reluctance in investment activities resulted in sales failing to materialise, mainly through shifts in major contracts with higher margins. The difficult market climate put the margins under pressure. The Softline Group therefore had to close with an EBIT (US-GAAP) of minus 6.3m (minus 0.3m Euro) which was higher than the budgeted EBIT of minus 3.0m Euro. The net loss for the year is 7.3m (minus 0.6m) Euro, but only 2.6m of it are effecting liquidity. Softline has a solid cash position of 19.7m Euro, with significantly reduced amounts owed to banks of 4.6m Euro. Over the past months, the software market has experienced a slump of unprecedented proportions, with the increasing investment restraint further aggravating the sale of major licenses. The increasing cost pressure among buyers had to be countered to some extent by higher discounts, which resulted in substantial losses of margin mainly in the 4th quarter. Seen over the whole of the year, one-off integration and reorganisation costs especially in the UK, as well as one-off reserves and value adjustments totalling about 1.5m Euro, depress the result. The measures contemplated and initiated by the board to counteract these developments will be felt over the next few months. Strengthening the proprietary brands with strong margins and exclusive cooperative sales agreements, catalogs in Switzerland and in France, license models (“XXL”) as well as new products and sales partners (Dixons, among others) will make substantial contributions to sales revenues and operating results, with the effect that the foundations for reaching profitability in the course of the 01/02 financial year have been laid if the levels of economic activity return to normal. Contact: Softline, Erik Parkner, eparkner@softline.de, Tel: 0049-781-9293-151 end of ad-hoc-announcement (c)DGAP 10.09.2001 ——————————————————————————– WKN: 720600; Index: Listed: Neuer Markt in Frankfurt, Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 100800 Sep 01