ATOSS Software AG — Earnings Release 2002

Oct 24, 2002

News Details

Corporate | 24 October 2002 08:45

ATOSS Software AG english

ATOSS: Targets Also Achieved in Q3 – Result Significantly Improved, Dividend Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– ATOSS: Targets Also Achieved in Q3 – More Sales, Result Significantly Improved – Dividend announced Munich, 24. October 2002 – ATOSS Software AG, Munich, the leading supplier of solutions in the Staff Efficiency Management (SEM) segment experienced continued positive development in the third quarter of 2002 as well. Compared to the previous year, sales increased by 7% to reach a total of TEur 16,716 (previous year: TEur 15,572), while operating profit (EBIT) improved substantially by TEur 2,267 to reach TEur 690 (previous year: TEur -1,577). Thus shareholders are presented with the prospect of being paid a dividend as a result of this positive development in business. Despite the continued difficult market environment for the suppliers of application software in particular, ATOSS succeeded in further increasing its sales and results in the third quarter as well. The company has managed a sustainable return to the profit zone and has thus achieved the turnaround announced last year after four consecutive quarters with positive results. In the first three quarters of the current financial year ATOSS achieved sales revenues in the amount of TEur 16,716 (previous year: TEur 15,572), which corresponded to an increase of 7% compared to the previous year. This revenue was generated among the various divisions as follows: Services TEur 5,130 (+29%), Maintenance TEur 5,078 (+21%), Software TEur 3,820 (-15%), Hardware TEur 1,813 (-12%) and Miscellaneous TEur 875 (+5%). The share in sales which was accounted for by the company’s operations abroad increased slightly from 11% in the previous year to 14%. The company’s operating result (EBIT) rose by TEur 2,267 to TEur 690 (previous year: TEur -1,577), the result before taxes improved by TEur 2,332 to reach a total of TEur 1,606 (previous year: TEur -726). The net income amounted to TEur 983 (previous year TEur -568). This positive corporate development becomes even clearer in a direct comparison of the respective quarters. Thus, sales in the third quarter of 2002 rose by 16% to reach a total of TEur 5,859. Within the individual divisions sales in the Service segment increased by 34% to TEur 1,871, sales in the area of Maintenance by 18% to TEur 1,689 and Software revenues rose by 22% to TEur 1,319 while the Hardware business declined by 23% to only TEur 676. Since the third quarter of the year 2001, ATOSS has managed to increase its EBIT margin at the quarter level from -3% to the present 8%. Eur 33.4 Million in Liquide Funds -Equity Ratio Continues to be High EPS Clearly Exceeds Expectations – Stable Share Price Earnings per share (EPS) amounted to Eur 0.25 (previous year: -0.14) as of September 30, 2002. Thus, the Munich software specialist has already for the period ending September 30, 2002 exceeded the consensus estimates of Eur 0.24 for the full year of 2002 circulated by analysts. The cash flow from current operations more than doubled from TEur 1,187 to TEur 3,597 and the equity ratio amounted to 86% (previous year: 88%) as of September 30, 2002. Liquide funds (Cash assets and marketable securities) amounted to Eur 33.4 million (previous year: Eur 30.3 million), which would correspond to cash assets of Eur 8.79 per share without taking an evaluation of the profitable operative business into consideration. As of September 30th the ATOSS share listed 4% less than it did at the beginning of the year with Eur 6.80, while the relevant indices like NEMAX Software (- 54%), NEMAX All Share (-65%) or C-DAX Software (-66%) clearly lost ground. The high in the third quarter was determined at Eur 8.45, and the lowest price was Eur 6.54. Volume of Company-held Shares Increased – New Designated Sponsor As of September 30, 2002 the volume of the company’s own shares increased to 224,839 as a result of further repurchases in the third quarter; this figure corresponds to 5.6% of the capital stock. These shares are intended to be used to secure employee shareholding schemes. There has also been a change with regard to the company’s designated sponsors. Since October 1, 2002 ATOSS now enjoys the support of HSBC Trinkaus & Burkhardt KGaA, Düsseldorf in addition to Gebhard & Schuster Wertpapierhandelsbank, Munich. Corporate Governance: ATOSS Develops Its Own Codex – Further Developments in Risk Management System – Changes to the Executive Committee in 2003 ATOSS has provided information on its own extensive measures in the area of corporate governance ever since the publication of its second quarter report in 2001. Now, on the basis of the recommendations of the “Government Commission for a German Corporate Governance Codex”, the company has prepared its own principles of corporate governance which, in part, are more advanced and which can be found on the company’s homepage in the currently valid version. Moreover, the company’s comprehensive risk management system underwent substantial modification and an internal manual was prepared as well. There will also be a change at the top in the year to come. Thus, Christiane Glöckler, head of Marketing and Sales, will leave ATOSS upon expiration of her contract on June 30, 2003. Ms. Glöckler informed the Executive Committee and Supervisory Board at a very early period about her decision to leave ATOSS of her own accord thus providing the company with ample opportunity to decide on a successor. For this reason negative effects on the successful corporate development will be precluded. Prospects for Fourth Quarter and Overall Business Year Remain Positive In view of the numerous negative conditions in the general economic environment the executive committee is quite satisfied with the results for the current financial year and is confident that the company’s overall objectives can be attained. Therefore, slight growth in terms of sales along with a significant increase in the result is expected for financial year 2002. In the current fourth quarter sales should at least match the level of the third quarter with a performance trend that continues to be stable. Shareholders to Participate in the Success of the Company In light of this return to profitability and an exceptionally solid financial situation, the executive committee presently assumes that it will be able to propose the payment of a dividend at the next General Meeting of Shareholders. However, the actual amount and the type of payment – in consideration of the company’s medium-term liquidity planning – will only be determined together with the Supervisory Board at the end of the current financial year. Thus, it is clear that ATOSS stands out among the majority of Neuer Markt companies not only when it comes to a very healthy balance sheet. ATOSS will present itself on an Analysts’ conference on November 11, 2002 in Frankfurt/Main and will publish its Q3 report on the same day. For further information please contact: ATOSS Software AG Christof Leiber Am Moosfeld 3, D-81829 Munich Tel.:+49 (0) 89 42771 265 Fax:+49 (0)89 42771 100 revolution-in-time@atoss.com http://www.atoss.com end of message, (c)DGAP 24.10.2002 ——————————————————————————– WKN: 510 440; ISIN: DE0005104400; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 240845 Okt 02