ATOSS Software AG — Earnings Release 2007

Jul 26, 2007

News Details

Corporate | 26 July 2007 08:30

ATOSS Software AG: Best half-year figures in the company’s history

ATOSS Software AG / Half Year Results

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ATOSS Software AG: Sustained increase in sales and results leads to the
best half-year figures in the company’s history; forecast for 2007 raised
to record level.

Munich, July 26, 2007 – The positive development in business at ATOSS, the
Munich-based specialist in software solutions covering all aspects of
intelligent staff deployment, has resulted in new record figures for the
first half of 2007. Sales were up by 12 percent over the year before at €
11.7 million, while EBIT climbed 46 percent to € 1.9 million. The company
has just posted the best half-yearly results in its history. The margin on
sales amounted to 16 percent (previous year 12 percent). Looking ahead to
financial year 2007 as a whole, the Management Board now anticipates
achieving a further record result with operating profits of at least € 3.0
million.

ATOSS Software AG has once again recorded continued growth in the second
quarter of 2007. While provisional figures show total sales rising 12
percent over the same period last year to stand at € 5.9 million, software
licensing soared 30 percent to over € 1.3 million. Operating profits (EBIT)
increased by an exceptional 73 percent to € 1.0 million.

Strong development in software licensing

In the first half of 2007, the company has raised its software sales by 14
percent to € 7.0 million (previous year € 6.1 million), with software
licenses up 19 percent at € 2.5 million (previous year € 2.1 million) and
software maintenance up 11 percent at € 4.5 million (previous year € 4.0
million). In the field of consulting, revenues rose by 10 percent to stand
at around € 3.0 million (previous year € 2.7 million).

In Q2 ATOSS increased sales in the software field by 17 percent over the
year before to € 3.6 million (previous year € 3.1 million), with software
maintenance revenues rising 11 percent to over € 2.2 million (previous year
€ 2.0 million) and software licensing adding 30 percent to stand at over €
1.3 million (previous year € 1.0 million). The consulting business also
developed well with an increase of 9 percent, taking the total to € 1.5
million (previous year € 1.4 million).

This clearly shows that ATOSS Software AG has seamlessly continued the
excellent trend in business recorded in 2006. Last year software licensing
sales, the real driving force behind the business, rose by 15 percent. In
the current year, the rate of increase has been even higher. In the first
half of 2007 the company achieved an increase in software licensing of 19
percent over the year before, and growth in Q2 actually reached 30 percent.

Moreover, orders on hand for software licenses in the first half of 2007
rose by 17 percent to € 1.5 million, underpinning future forecasts with
still greater security.

Adjusted operating profits more than doubled

The highly positive development in sales in the second quarter has, in
particular, contributed to a clear increase in the key profit indicators.
For example, the operating result was increased in Q2 by 73 percent to €
1.0 million (previous year € 0.6 million), and in the first half of 2007 by
46 percent to € 1.9 million (previous

year € 1.3 million). The margin on sales (EBIT) in the second quarter was
17 percent, compared with 11 percent in the year before.

The development in earnings per share was similarly gratifying with the
company returning a figure of € 0.17 in Q2 (previous year € 0.09) and €
0.31 overall for the first half (previous year € 0.22).

Figures for the same period last year included extraordinary income of €
0.4 million from the sale of the product AENEIS. After adjusting for this
effect, profits on ordinary business activities in the first half have more
than doubled in comparison with the year before. This also underscores the
fact that the conservative profit target of at least € 3.0 million
announced by the Management Board for the year 2007 as a whole represents a
further substantial increase. In 2006 ATOSS achieved an operating result of
€ 2.8 million, or € 2.3 million after adjustment for AENEIS.

Cash flow from operations and liquidity remain high

The gratifying development in sales was also reflected in liquidity which
stood at € 11.7 million on June 30, 2007, compared with € 9.1 million in
the previous year. Cash flow, too, remained high at € 2.2 million, though
it trailed the previous year’s figure of almost € 2.8 million by 19
percent. The effect of the dividend payment of almost € 1.0 million was
evident in liquidity in the first six month. ATOSS continues to enjoy
first-class funding power and highly comfortable liquid reserves with an
equity ratio of 57 percent (previous year: 55 percent).

Outlook remains conservative even after new forecast

In consideration of the results recorded in the course of the year to date,
the Management Board anticipates that another new record result will be
achieved in financial year 2007 as a whole. An operating result of at least
€ 3.0 million is expected.

By continuing the actual encouraging business, further improvements will be
possible.

About ATOSS

For more than 20 years ATOSS Software AG has specialized in flexible,
demand-oriented staff deployment, offering integrated solutions which
encompass consulting, software and professional services. With the ATOSS
Staff Efficiency Suite, ATOSS Startup Edition and ATOSS Time Control
systems, modular software packages are available to meet all of the
requirements of undertakings of all sizes and in all sectors. The software
employs the latest technologies and can be integrated into existing IT
landscapes without great expense. With 188 employees at eight locations,
ATOSS is represented in Germany, Austria and Switzerland. Meanwhile, the
deployments of over two million workers employed by more than 3,500
customers are managed with ATOSS solutions. The company’s software products
are in use in nine countries and eight languages.

CONSOLIDATED OVERVIEW: Half-year comparison to June 30 in T€ (as per IFRS)
(figures are provisional)

     June 30,2007    % of  June 30, 2006       Chg.

Sales 11,653 100% 10,392 100% 12%
Software 6,966 60% 6,124 59% 14%
of which software 2,508 22% 2,112 20% 19%
licensing
of which software 4,459 38% 4,012 39% 11%
maintenance
Consulting 2,978 26% 2,708 26% 10%
Hardware 1,361 12% 1,258 12% 8%
Miscellaneous 347 3% 302 3% 15%
EBITDA 2,135 18% 1,503 14% 42%
EBITCB (1) 1,904 16% 1,358 13% 40%
EBIT 1,882 16% 1,293 12% 46%
EBT 2,069 18% 1,529 15% 35%
Net income 1,244 11% 855 8% 46%
Cash flow 2,239 19% 2,757 27% -19%
Liquidity (2/3) 11,743 9,119 29%
EPS (in euro) 0.31 0.22 43%
Employees (4) 188 162 16%

CONSOLIDATED OVERVIEW: Quarterly comparison in T€ (as per IFRS)
(figures for Q2/2007 are provisional)

In T€ as per IFRS Q2/07 Q1/07 Q4/06 Q3/06 Q2/06
Sales 5,924 5,729 6,061 5,538 5,275
Software 3,594 3,373 3,459 3,346 3,068
of which software licensing 1,345 1,163 1,252 1,248 1,038
of which software maintenance 2,249 2,210 2,206 2,098 2,030
Consulting 1,486 1,492 1,489 1,361 1,362
Hardware 664 697 904 648 671
Miscellaneous 180 167 209 184 173
EBITDA 1,147 988 798 910 692
EBITCB (1) 1,024 879 690 819 604
EBIT 1,014 868 684 802 587
EBIT margin in % 17% 15% 11% 14% 11%
EBT 1,108 960 809 856 666
Net income 664 580 488 542 358
Cash flow -762 3,000 -1,045 2,600 107
Liquidity (2/3) 11,743 13,619 10,784 11,664 9,119
EPS (in euro) 0.17 0.15 0.12 0.14 0.09
Employees (4) 188 180 169 171 162

(1) EBIT before cost of employee convertible bond participation programme
(2) Cash and marketable securities

(3) Dividend of € 0.24 per share on April 27, 2007 (4) at the end of the
quarter

Upcoming dates:

23.08.2007 Publication of first-half financial statements for 2007

25.10.2007 Press release announcing 9-month statements for 2007

Further information: http://www.atoss.com Contact: ATOSS
Software AG
Christof Leiber / Member of the Management Board
Am Moosfeld 3, D-81829 Munich
Tel.: +49 (0) 89 4 27 71 – 265
Fax: +49 (0) 89 4 27 71 – 100
investor.relations@atoss.com

DGAP 26.07.2007

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
Internet: www.atoss.com
ISIN: DE0005104400
WKN: 510440
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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