ATOSS Software AG — Earnings Release 2002

Mar 17, 2003

News Details

Corporate | 17 March 2003 08:01

ATOSS Software AG english

ATOSS Software AG – Year End Results 2002 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Munich, March 17, 2003 – Today, ATOSS Software AG presented its annual financial statements for the 2002 business year. According to the latest figures, the Munich based software specialist for solutions revolving around intelligent personnel deployment achieved a consistent improvement of earnings power in 2002. The EBIT sales margin climbed from 2 percent in the first quarter to 9 percent in the fourth quarter. All in all, the company posted a pre-tax result (EDIT) of EUR 1.3 million (previous year: EUR – 1,4 million), while sales rose from EUR 21.2 to 23.2 million. The General Meeting of Shareholders convening on April 30, 2003 will propose an outpayment of EUR 1.50 per share. According to current knowledge of the company’s administration, this disbursement will not be subject to taxation for private shareholders holding less than 1 percent of share capital. The outpayment to major shareholders is subject to the so-called half-income procedure. Based on the improved result, a very positive operative cash flow and the high liquidity, a special outpayment will mark the beginning of a dividend policy with a long term orientation. The date of this year’s dividend outpayment will, however, depend on the date of entering the resolutions of the General Meeting of Shareholders on the Commercial Register and its publication. According to company law provisions, outpayments cannot be made before the end of a six month waiting period after publication of the registration pertaining to the respective capital measures. In the upcoming business years the company intends to distribute 30 % to 50% of net earnings available for payout as dividend. In years with lower earnings, a minimum dividend of EUR 0.15 per share is planned. According to Andreas F.J. Obereder, Board Chairman and founder of ATOSS Software AG, this will provide shareholders with reliable dividend earnings in addition to the opportunity to participate in the company’s future growth. Moreover, the company’s very strong equity ratio, also after outpayments, affords clients a reassuring measure of security in making their investment decisions. In response to the announcement of the preliminary figures at the end of January the ATOSS share has developed very well this year, following on a 2002 business year in which shareholders already experienced a good performance of our company’s shares. By comparison with the listings at the beginning of January, our price gain comes in at just under 40 percent – in a declining stock market. Steady continued growth in services and software maintenance, positive trend in software licenses and hardware The Services Division, comprising Consulting and IT Services, succeed in boosting sales by 30 % to EUR 7.2 million. With this performance, the Division is in the meantime accounting for a 31 % share of total sales (previous year: 26%) and underscores that marked growth can be achieved independent of software sales. The software license and software maintenance area achieved a slight 3% sales increase to EUR 12.3 million. It must be noted here that the first half of 2002 entailed a 27% drop in software license sales, while the following two quarters showed considerable gains recorded against the backdrop of a negative market environment. Given this mixed performance, software license sales roles by a mere 13 percent to EUR 5.5 million. Accordingly, the share of this area in total sales receded from 30 to 24 percent. The software maintenance activities experienced marked growth of 21 percent to EUR 6.8 million (share of total sales now at 29 percent following 26 percent last year). In line with the software license developments sales in the hardware area showed a marked declined in the first quarters, followed by a reversal in trend in the second half of the year. All in all, hardware sales dropped by 7 percent to EUR 2.6 million. Miscellaneous sales rose by 14 percent to EUR 1.2 million. Posting a 9 percent sales increase to EUR 23.2 million ATOSS succeed in breaking away from the negative branch trends and achieved new record figures. Steady rise in earnings power since five quarters After ATOSS Software AG returned to the black in the fourth quarter of the 2001 business year, successful measures geared to achieving a sustained enhancement of profitability in connection with rigorous cost controlling were implemented in five successive quarters. Consequently, earnings before depreciation, interest and tax (EBITDA) rose from EUR -0.2 to EUR 2.4 million, reflecting an EBITDA sales margin of 10% for the overall year. Earnings before interest and tax (EBIT) improved from EUR -1.4 million to around EUR 1.3 million, while earnings before tax (EBT) climbed from EUR -0.2 million to EUR 2.1 million. With these figures ATOSS is achieving an EBIT sales margin of just under 6 percent (previous year: -7 percent). Net income for the past business year came in at EUR 1.3 (previous year: EUR -0.2 million), and earnings per share stood at EUR 0.32 (previous year: EUR -0.05). The company’s R&D expenditures were upped by 17 percent to a total of EUR 3.5 million. At present, ATOSS is investing a substantial 15 percent of sales. Cash holdings rise to EUR 33.7, capital ratio stands at 87 percent Holdings of cash in banks and securities increased from EUR 31.7 last year to EUR 33.7 million as per December 31, 2002. The share of liquid funds of the company’s total assets rose to 81 percent over the past year’s 78 percent. The foundation for additional long-term growth has been further bolstered. As per December 31, 2002 ATOSS Software AG holds share capital and reserves of EUR 36.3 million (previous year: EUR 36.4 million), while the capital ratio stands at 87 percent (after 90 percent last year). Outside capital rose mainly due to increased provisions resulting from personnel obligations from EUR 4.2 to EUR 5.2 million. Cash flow from ongoing business activities increased as of December 31, 2002 to EUR 4.1 million (previous year: EUR 2.8 million). ATOSS clients benefiting from rapid return on investment In spite of low corporate willingness to invest ATOSS, with its array of products and solutions, has succeeded in maintaining existing customer relations while also acquiring new clientele and has managed to even benefit from the existing difficult overall economic situation. Company management regards this development as a logical consequence of the ATOSS business model that offers solutions for the pivotal problem of clients, namely significantly enhancing productivity by intelligent human resources deployment. The ATOSS solutions deliver rapid return on investment. On the other hand, in a protracted phase of weak markets, companies are under increasing pressure to cut their personnel costs, and therefore use their human resources as cost efficiently as possible. In order to compete with low wage countries productivity must rise continuously and the ATOSS range of products and services caters to precisely these issues. Positive outlook on the ongoing business year With regard to the ongoing business year the Board does not yet perceive any signs of improving markets that would herald an upswing in investment activities. In view of the very uncertain geopolitical situation holding the risk of the Iraq conflict escalating, it is very difficult to venture forecasts for the current business year, a fact that is reflected by the high degree of volatility on stock markets worldwide. In spite of this situation the Board is convinced that the company will again be able to achieve further sales growth and a considerable amelioration of earnings in the 2003. The performance of the individual quarters of the ongoing business year is expected to exceed the figures recorded in the respective quarters of the previous year. 24.4.03 Press release Q1 2003, 30.04.03 General Meeting of Shareholders, 15.05.03 Publication Q1 2003 – Report Contact: Christof Leiber LL.M. +49-89-42771-265 end of message, (c)DGAP 17.03.2003 ——————————————————————————– WKN: 510440; ISIN: DE0005104400; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover und Stuttgart 170801 Mär 03