ATOSS Software AG — Earnings Release 2006

Jul 26, 2006

News Details

Corporate | 26 July 2006 08:20

ATOSS Software AG: Best half-year in the history of the company

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Press release Best half-year in the history of the company. Considerable gains in sales, earnings and incoming orders. Very positive outlook; ATOSS on track to achieve record results. Munich, July 26, 2006 – In the first six months of 2006 ATOSS Software AG has succeeded in generating tangible growth and is also recording gratifyingly strong intake of orders and a high level of orders at hand. According to preliminary figures, sales are up by 9% to € 10.4 million, and adjusted by revenue related to the product AENEIS that was divested as of January 1, 2006 by 13 percent. The dynamic developments are even more evident by the direct comparison of quarters (Q2). Here, the gains in sales are reflected by a 16% leap to € 5.3 million, and adjusted by a substantial 21 percent. In this context, results and cash flow showed considerable improvements. With a look to the strong surge in order intake for software licenses of around 31 %, the management board is anticipating record figures for the business year as a whole. The high investments of the last years in new technologies and branch solutions, especially for the retail sector, are generating considerable, positive effects in the meantime. Large volume orders from top tier new clients such as the T-Punkt sales company, a subsidiary of Deutsche Telekom AG or the EDEKA-Gruppe underline the performance strength of ATOSS solutions. Additional attractive orders were gained from Max Bahr, K+L Ruppert and other merchandising and retailing companies with the result that ATOSS is now bolstering what is already a strong position in this sector. “In the fourth quarter of 2005 developments shifted into higher gear, and since then we have experienced a gratifying upswing in the demand for our technologies. The dynamic developments are reflected in particular by the strong intake of new orders and the high level of orders on the books,” explained Andreas F.J. Obereder, founder and chairman of the management board of ATOSS Software AG. “In the last quarters our company has undergone significant change. ATOSS has gained in focus and planning security. In this context, especially the high volume of orders at hand creates a significant measure of forecasting and planning security. Therefore, we are looking to further business developments with a very strong measure of optimism,” as Andreas F.J. Obereder continued. Especially strong gains in software license sales The positive company developments since the fourth quarter 2005 have also continued in the second quarter of 2006. On quarterly sales of € 5.3 million (representing a 16% increase over last year) software license sales climbed by 32% to € 1.0 million, while ATOSS sold even 95% more hardware at € 0.7 million. With these figures, the company’s performance for the first half of 2006 by comparison with the prior year period has improved markedly. Group revenues moved ahead by 9% to € 10.4 million, whereby the sales gains in software licenses (+14% to € 2.1 million), hardware (an increase of 45% to € 1.3 million) and consulting (+10% to € 2.7 million) were the most notable drivers of growth. In the second quarter, sales of software licenses – adjusted by AENEIS – rose by a full 45%, and all in all by 24% compared with the prior year period. Strong developments in results In the first half of the year, the operating result (EBIT) was considerably boosted over the prior year period from € -0.2 million to € 1.3 million. In the second quarter, the operating result stood at € 0.6 million by comparison with € -0.1 million. The resulting sales margin in the first six months of 2006 came in at 12% (previous year: -2%) and stood at 11% in the second quarter (previous year: –3%). In regarding the results of the second quarter it must be considered that a considerable non-recurrent income item of € 0.4 million had been recorded in the first quarter from the successful sale of the company’s AENEIS software product. The actual operating result in the second quarter of 2006 has also considerably improved over the performance of the first quarter. In the first half of the year the earnings per share were recorded at € 0.22, by comparison with € -0.01 in the prior year period. Strong cash flow, liquidity position remains substantial The dynamic business developments are also reflected by a marked rise in cash flow which reached € 2.8 million over € 0.4 million in the past year. Following the disbursement of € 5.50 per share on May 3, 2006, according to a resolution adopted by the General Meeting of Shareholders, the liquidity position had declined by a considerable measure. As repeatedly stated, ATOSS had paid out liquidity not required for operational purposes to its shareholders. In view of liquid funds of € 9.1 million and an equity ratio of 55% (previous year: 85%) ATOSS remains on very sound financial footing. Incoming orders for software licenses up by 31%, orders on hand more than doubled In the first half of the year the increasing dynamics were especially reflected by the order intake for software licenses. By comparison with the previous year, incoming orders rose strongly by 31% from € 2.3 to € 3.0 million and raised the volume of projects in progress. With a look to the volume of orders at hand, ATOSS also reported significant gains. As of June 30, 2006, orders on the book more than doubled from € 0.7 million last year to a volume of € 1.5 million. Record figures foreseeable for the 2006 business year This year the ATOSS management board had already raised the earnings forecast for the year on two occasions; the last announcement having been made in connection with new high volume orders from the retailing sector. To date, the Munich headquartered software company is expecting a minimum EBIT margin of 11% and operating earnings (EBIT) of at least € 2.3 million (previous estimation € 1.7 million). In this context, the company has continued to adhere to its accustomed conservative forecasting policies. Additional improvements in performance may result from the continuation of the gratifying business development of the last three quarters. Having already achieved operating earnings of € 1.3 million in connection with a sales margin of 12%, the management board is convinced that the forecasts for the 2006 business year will be met and that ATOSS, consequently, will generate operating earnings in the ongoing 2006 business year that will exceed the figures of 2003 – the best year in company history to date. Comparision as of Financial Years to June 30, 2006 according to IFRS (Preliminary figures for 2006) from Propo- from Propo- Chang- Jan. rtion Jan. rtion e 200- 01 to of total 01 to of total 6 200- Jun. 30, reven- Jun. reven- 6/2005 2006 ues 30, 2- ues 005 Revenues 10,392 100% 9,566 100% 9% Software 6,124 59% 5,887 62% 4% Software licenses 2,112 20% 1,847 19% 14% Software 4,012 39% 4,040 42% -1% maintenance Consulting 2,708 26% 2,462 26% 10% Hardware 1,258 12% 866 9% 45% Other 302 3% 351 4% -14% EBITDA 1,503 14% 228 2% >100% EBITCB (1) 1,358 13% -15 0% >100% EBIT 1,293 12% -175 -2% >100% EBT 1,529 15% 87 1% >100% Net income 855 8% -32 0% >100% Cash Flow 2,757 27% 355 4% >100% Financial resources 9,119 26,393 -65% (2 / 3) EPS (in €) 0.22 -0.01 >100% Employees (4) 162 188 -14% GROUP OVERVIEW: Quarterly comparision according to IFRS (Preliminary figures for Q2 2006) Q2/06 Q1/06 Q4/05 Q3/05 Q2/05 Revenues 5,275 5,117 5,849 5,001 4,536 Software 3,068 3,056 3,359 2,898 2,770 Software licenses 1,038 1,074 1,283 871 784 Software 2,030 1,982 2,076 2,027 1,986 maintenance Consulting 1,362 1,346 1,336 1,165 1,247 Hardware 671 587 836 619 344 Other 173 129 318 319 176 EBITDA 692 811 944 17 55 EBITCB (1) 604 755 910 -13 -52 EBIT 587 706 830 -93 -132 EBIT % 11% 14% 14% -2% -3% EBT 666 862 980 45 3 Net income 358 497 510 -19 -40 Cash flow 107 2,650 -1,177 2,520 -993 Financial resources 9,119 30,543 27,836 28,823 26,393 (2 / 3) EPS (in €) 0.09 0.13 0.13 -0.01 -0.01 Employees (4) 162 165 177 181 188 (1): EBIT before cost of employee participation program arising from convertible bonds (2): Cash and marketable securities (3): Disbursements of € 0.11 € per share on May 2, 2005 and € 5.50 on May 3, 2006 (4): at the end of quarter Upcoming dates: August 23, 2006: Q2-Report on second quarter Further information: http://www.atoss.com Contact: ATOSS Software AG Christof Leiber / Board Member Am Moosfeld 3, D-81829 München Tel.: +49 (0) 89 4 27 71 – 265 Fax: +49 (0) 89 4 27 71 – 100 investor.relations@atoss.com (c)DGAP 26.07.2006 ————————————————————————— Language: English Issuer: ATOSS Software AG Am Moosfeld 3 81829 München Deutschland Phone: +49 (0)89 4 27 71-0 Fax: +49 (0)89 4 27 71-100 E-mail: revolution-in-time@atoss.com WWW: www.atoss.com ISIN: DE0005104400 WKN: 510440 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service —————————————————————————