ATOSS Software AG — Earnings Release 2006

Mar 14, 2007

News Details

Corporate | 14 March 2007 10:41

ATOSS Software AG: Records for financial year 2006 confirmed, positive

ATOSS Software AG / Final Results

Release of a Corporate-announcement, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Munich, March 14, 2007 – ATOSS Software AG, the specialist in software
solutions covering all aspects of intelligent personnel resource planning,
took the opportunity of today’s press conference to confirm its expected
record results for 2006. Even after upgrading its forecast for a third
time, the company still managed to exceed even these targets for the year
2006.

Looking ahead to 2007, the positive trend has continued through the first
two months of the new financial year and the Management Board is
optimistic. Various new orders have already been placed by clients
including another regional member of the EDEKA Group and mister + lady
jeans. The strong demand for ATOSS solutions from the retail sector
continues undiminished.

Income from ordinary activities has more than quadrupled

In financial year 2006 ATOSS Software AG recorded record sales and
earnings. Sales rose by 8 % - or even 10 % after adjustment for revenues
associated with the software product AENEIS – to € 22.0 million,
accompanied by a substantial increase in profits. ATOSS more than
quadrupled its income from ordinary activities (EBIT), which rose from €
0.6 million to € 2.8 million, while the margin on sales was 13 % (previous
year 3 %).

The company also set new records for every other key indicator including
cash flow, operating margin and bottom line results. For example, ATOSS
boosted operating cash flow from € 1.4 million in the preceding year to €
4.3 million. The hefty € 3.9 million invested in research and development
was thus financed entirely out of incoming revenues. While the return on
equity at 22 % (previous year: 2 %) was at its highest since the company
was floated.

Proposed dividend of € 0.24 per share represents a distribution rate of 50%

Earnings per share rose significantly from € 0.12 to € 0.48. As a result
ATOSS will propose to its shareholders at the AGM that the company should
pay a dividend of € 0.24 per share. In line with the ATOSS dividend policy,
this is at the top end of the 30 to 50 % distribution scale.

The main factor behind this positive development in business was the
exceptionally strong response from customers. ATOSS has upgraded its
already highly successful software solutions in line with the latest J2EE
standard of Java technology and focused its software portfolio squarely on
the core areas of working hours management and personnel resource planning.

Order book provides a sound foundation for 2007

The positive demand for ATOSS solutions was evident in particular in the
software licensing business. However there were notable increases in other
sales categories as well. Software licensing in 2006 rose by 15 % to € 4.6
million. After adjustment for the previous year’s income from AENEIS which
was sold effective January 1, 2006, growth actually reached 21 %. The
extent of customer interest was even more clearly reflected in the order
intake for software licenses which soared by 24 % to € 5.4 million. ATOSS
also increased its turnover from services by 12 % to € 5.6 million and
hiked hardware by 21 % to € 2.8 million.

This satisfying development in business in 2006 means that ATOSS can plan
ahead with confidence for the current year 2007. What’s more, in recent
weeks the company has booked more orders, particularly from the retail
sector. For example EDEKA Handelsgesellschaft Rhein-Rhur mbH, Moers, is now
the fifth regional member of the EDEKA Group to join the ATOSS client list.
The Management Board is also delighted with the order received from Western
store beran mister + lady jeans GmbH. This client has already begun a
nationwide rollout of ATOSS personal resource planning software and will
expand further.

Against the background of these and other orders and the continuing
positive trend in business, the Management Board is optimistic.
Nevertheless the Board stands by its conservative planning and forecasting
policy. The outlook for 2007 includes a slight increase in software
licensing and a generally moderate increase in sales.

A further improvement in results is also expected after adjustment for
extraordinary income. In this respect it should be borne in mind that
revenues booked by ATOSS in 2006 also included extraordinary earnings of €
0.4 million form the sale of its product AENEIS.

If the welcome order situation continues, then as in the previous year,
further improvements are possible. The clear objective of the ATOSS
Management Board remains to accelerate the acquisition of premium
customers. In recent years the company has already laid the necessary
foundation through its extensive investments in up-to-date technology and
clear positioning. The Management Board also attaches great significance to
the company’s sound financial strength which offers customers the
investment security they require. Despite the substantial distributions to
shareholders in recent years, as of December 31, 2006, ATOSS reported
liquidity of around € 10.8 million, equal to € 2.75 per share, with an
equity ratio of 55%.

Upcoming dates:

April 24, 2007 Press release – statements for Q1 2007

April 26, 2007 Annual General Meeting, Munich

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 14.03.2007

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
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

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