ATOSS Software AG — Earnings Release 2001

Nov 15, 2001

News Details

Corporate | 15 November 2001 08:50

ATOSS Software AG english

Targets achieved in third quarter Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Targets achieved in third quarter ATOSS Software AG, Munich, the leading supplier of software solutions in the field of Staff Efficiency Management (SEM), has successfully achieved its forecast targets for the third quarter even despite the ongoing negative economic climate. Sales at EUR 5.1 million were 5% up on the second quarter, while the effects of introducing cost-saving measures at an early stage were reflected in a clear improvement in the result. EBIT at EUR -0.15 million was only slightly negative, compared with EUR -1.2 million in the second quarter. Over the first nine months of the financial year 2001, ATOSS recorded sales of EUR 15.6 million, up 1% on the figure of EUR 15.4 for the same period last year. A year on year comparison of the earnings situation to date shows EBIT of EUR – 1.6 million (last year: EUR -0.6 million) and a pretax result of EUR -0.7 million (last year: EUR -0.6 million). However, these figures have yet to reflect the reversal in trend which is clearly evident from a direct quarter by quarter comparison over the current year. Indeed a comparison of the figures of Q3 2001 with those for Q3 2000 shows an increase in sales of 6%, while the result (EBIT) has improved by 80%. Andreas F.J. Obereder, Chairman of the Management Board of ATOSS Software AG, commented: “As a result of the measures which have been introduced, ATOSS Software AG has now achieved a cost structure which is supportable even at the depressed level of sales contingent on the economic climate and which will ensure that profitability rises sharply when the economy begins to take off. Whereas in the first two quarters of the current year, the result was still somewhat impaired due to the step-by-step implementation of cost-saving measures and to the expenses involved in restructuring, success is now apparent. In the fourth quarter this success will become even more clearly evident.” Positive cash flow, continuing high liquidity In the first nine months of the current financial year ATOSS has generated a positive cash flow amounting to EUR 1.2 million (last year: EUR -4.6 million). As of 30.09.01 the company had liquid funds totaling EUR 30.3 million at its disposal. The equity figure of EUR 36.1 million as of 30.09.01 equated to a capital ratio of 88 %. ATOSS thus continues to exhibit a very solid balance sheet backed up by significant financial strength. Earnings per share were EUR – 0.14 (last year: EUR -0.15 as of 30.09.2000), or EUR -0.14 after adjustment for convertible bond issues. Varying development in different divisions As in the first half-year, the individual divisions of ATOSS Software AG have continued to develop at different rates. Steadily increasing sales in the field of IT Services and Consulting contrasted with a downward trend in the high- margin areas of Software and Hardware, due to the reticent investment policy being pursued by many companies. The downturn in software business was largely compensated for by the sharp increase in maintenance revenues. These multi-year maintenance contracts will be of particular importance for the long-term development of ATOSS. Despite higher sales, as expected due to the shift in sales and margin structures, there was no clear improvement in results in the first nine months. Of course, last year s result was essentially determined by a single large order in the high-return area of software. The proportion of total sales accounted for by software in the third quarter of 2001 was 29 %, against 41 % the year before. ATOSS has therefore further intensified its sales efforts and looks forward to rising sales in the current quarter. Service revenues up 54% The Services division, which includes Consulting and IT Services, continued to record unbroken growth. Sales rose within the first nine months of 2001 by 54% to EUR 4 million. With 26% of total sales (last year: 17%) this division represents one of the company s most important sources of earnings alongside maintenance revenues. Hardware sales down 24% By contrast, the proportion of sales contributed by Hardware fell from 18% to 13%. The generally prevailing reluctance to invest is at present especially evident in this area of business. The sales total of EUR 2.1 million for the first three quarters was down by 24% against last year s figure of EUR 2.7 million. Software licensing sales down 28%, Maintenance up 40% Software licensing sales were likewise down, with the volume reaching EUR 4.5 million (against EUR 6.3 million for the same period last year). The proportion of total sales fell correspondingly from 41% last year to 29% in 2001. By contrast, in the wake of last year s successful sales of software solutions, maintenance revenues rose markedly by 40% to EUR 4.2 million (last year: EUR 3 million). The proportion of total sales rose from 19 to 27%. This development is all the more gratifying, given that the trend continues to rise, in that the multi-year term of these maintenance contracts will safeguard the earning power of ATOSS Software AG in the long term. Outlook For the fourth quarter ATOSS expects that the economic climate will remain equally difficult. In the air transportation industry especially there has in many cases been a significant deterioration in the willingness to invest. The development in business in October 2001 confirms this trend. Software sales in particular have continued to decline. Against this background, it is very difficult to indicate a forecast for the fourth quarter. The Management Board anticipates that following the decision to introduce cost-saving measures at an early stage, ATOSS will achieve a positive operating result (EBIT) in the current fourth quarter. How great this positive operating result will be is to a large extent dependent on whether – irrespective of the weak economic environment – this year brings a repeat of the traditionally strong year-end business in the software area. For the financial year 2001 ATOSS therefore expects to record sales which are as a minimum no more than slightly below last year s record figure, as well as an operating result (EBIT) which at least shows an improvement over the level of 30.09.2001, a more or less balanced pretax result (EBT) and a positive operating cash flow. If in fact year-end software sales rise in a manner similar to previous years, even in the present economic climate, ATOSS could well record sales at around the level of last year, but coupled with an improved operating result (EBIT) and a distinctly positive pretax result (EBT). Further information: ATOSS Software AG, Christof Leiber, Am Moosfeld 3, D-81829 München, Tel.: +49 (0) 89 4 27 71-265, Fax: +49 (0) 89 4 27 71-100, revolution-in-time@atoss.com, http://www.atoss.com end of message, (c)DGAP 15.11.2001