ATOSS Software AG — Earnings Release 2002

Jan 31, 2003

News Details

Corporate | 31 January 2003 08:35

ATOSS Software AG english

ATOSS – Preliminary figures 2002 – Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– ATOSS – Preliminary figures 2002 – : Additional gains in Q4 – long-term dividend policy announced Munich, January 31, 2003 – In the fourth quarter of 2002 ATOSS Software AG continued its positive business development. The Munich-based software specialist for intelligent personnel deployment solutions concluded the 2002 business year with considerable sales and performance gains. In the course of the General Meeting of Shareholders on April 30, 2003, an outpayment to shareholders of EUR 1.50 per share will be proposed, marking the commencement of a dividend policy with a long-term focus. In spite of the negative economic environment, sales in the 2002 business year rose by 9 percent over the previous year’s figures to EUR 23.2 million (previous year: EUR 21.2 million). The software licensing and software maintenance area reported sales of EUR 12.3 million (previous year: EUR 11.9 million) marking a 3 percent gain. Sales of software licenses dropped from EUR 6.3 million by 13 percent to EUR 5.5 million, while software maintenance revenues were up by 21 percent to EUR 6.8 million. In the Services division sales showed a strong 30 percent increase over the previous year to EUR 7.2 million. As anticipated, hardware sales declined by 7 percent to EUR 2.6 million, while miscellaneous sales were up by 14 percent to a total of EUR 1.2 million. Disproportionate earnings gains; EBIT margins climbed from 2 percent in Q1 to 9 percent in Q4 2002 Thanks to gratifying sales developments in connection with continuous cost reductions, the gains in earnings proved even more pronounced. With this performance ATOSS has achieved the turnaround announced in the previous year. In the process, the company has improved earning power from quarter to quarter. In the 2002 business year earnings before interest and tax (EBIT) improved substantially from EUR -1.4 million to some EUR 1.3 million, while pre-tax earnings (EBT) rose markedly from EUR -0.2 million up to EUR 2.1 million. With these figures ATOSS has achieved all in all an EBIT margin of nearly 6 percent (previous year: -7 percent). Viewed on the level of quarterly figures, this represents a development from 2 percent in the first quarter of 2002 to over 9 percent in the fourth quarter. In the past business year annual net profit (net income) came in at around EUR 1.3 million (previous year: EUR – 0.2 million), which pushed earnings per share to around EUR 0.33 (previous year: EUR – 0.05). Outpayment of EUR 1.50; as of 2003 between 30 and 50 percent of net earnings available for payout will be distributed as dividend Against the backdrop of the successful 2002 business year the board has decided with immediate effect that shareholders will participate in successful development of the company by way of a continuous dividend, and will be embarking on the new dividend policy by distributing an outpayment of EUR 1.50 per share. With this measure the company is strengthening the reliable equity return of the ATOSS share and adjusting the high equity level to the needs of medium-term liquidity planning. At the General Meeting of Shareholders on April 30, 2003, company administration will propose the necessary capital measures that will, in compliance with company law provisions, result in an outpayment six months after the registered execution of these capital measures. The company’s future dividend policy envisages a distribution of between 30 and 50 percent of the net earnings available for payout, as well as a minimum dividend of an initial EUR 0.15 per share that will be largely independent of business developments. “In the technology segment too the capital markets are increasingly demanding shares that deliver solid profits. By initiating a long-term dividend policy we are offering shareholders the opportunity to participate in future growth in our core market, while achieving a reliable dividend yield. At the same time, the continuously high equity share that ATOSS holds ensures the level of investment protection our clients demand, while granting us the necessary flexibility scope for making meaningful investments,” as Andreas F.J. Obereder, board chairman and founder of ATOSS Software AG outlines the situation. Very positive price performance The fact that our shareholders are already satisfied with the development of our company is aptly reflected by the price performance over the past year. At the beginning of the year the price of ATOSS stock stood at EUR 7.13. The share price peaked at EUR 9.66 and closed the year at EUR 7.45. During the same period of time, against the backdrop of the very weak technology markets, the NEMAX Software Index lost around 51 percent of its value. Thanks to the favorable business developments in the past business year, the ATOSS share price succeeded in breaking away from this trend. Regardless of this, ATOSS will continue to take additional measures to enhance the attractiveness of the share, such as the introduction of a continuous dividend distribution policy, and to strengthen its appeal as an investment vehicle but also as means of financing further acquisitions over the medium term. Company success based on established business model The management board regards the company’s success – in spite of the extremely reticent investment propensity of corporate clients – as being rooted in the ATOSS business model. ATOSS offers comprehensive solutions for one of the most pivotal problems its customers are confronted with, namely significantly enhancing productivity through intelligent personnel deployment and utilization. Moreover, in most instances the implementation of ATOSS products ensures substantial returns on investment (RoI) within 6 to 12 months. Board chairman Andreas F.J. Obereder is convinced that this will be the formula for future market success: “Only by integrating consulting services, software solutions and implementation services, in connection with our above average expertise in the area of personnel deployment, will we create substantial added value that provides our customer with significant benefits and pay-offs after a short period of time.” Positive outlook on the current business year Andreas Obereder does not see any signs of an improved market situation in the ongoing year that would usher in an upturn in investment. The focus continues to be on replacement investments, while any investments in new products are only committed when rapid profit contributions are expected as a result. It is precisely here that the board of management of ATOSS Software AG perceives good opportunities and is consequently planning to achieve further sales growth in the 2003 business year in connection with a considerable improvement in performance. 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. Upcoming event dates: 31.01.2003Road Show in Frankfurt am Main 17.03.2003Publication of annual report 2002 30.04.2003General Meeting of Shareholders in Munich Further information is available at: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber Am Moosfeld 3, D-81829 Munich Tel.: +49 (0) 89 4 27 71 – 265 Fax: +49 (0) 89 4 27 71 – 100 revolution-in-time@atoss.com end of message, (c)DGAP 31.01.2003 ——————————————————————————– WKN: 510 440; ISIN: DE0005104400; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 310835 Jän 03