ATOSS Software AG — Earnings Release 2006

Jan 31, 2007

News Details

Corporate | 31 January 2007 08:25

ATOSS Software AG: Record final results for 2006, dividend proposed

ATOSS Software AG / Final Results/Dividend

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Corporate News

ATOSS Software AG: Records set in the 2006 business year; results of
ordinary business activities show marked gains.

Munich, January 31, 2007 – In the fourth quarter of 2006, ATOSS Software
AG, the specialist for software solutions revolving around intelligent
personnel deployment, continued its record performance. The targets cited
after the third forecasting adjustment for the reporting year were even
exceeded.

On the back of 8% sales gains - or 10% adjusted by the proceeds from the
sale of the AENIS software product - to just € 22.0 million, profits were
boosted by a disproportionate measure. In the 2006 business year the
results of ordinary business activities (EBIT) rose from € 0.6 million to €
2.8 million, which is more than a fourfold increase. With this figure,
ATOSS achieved a sales margin of 13% (previous year: 3%), thereby slightly
exceeding the last forecasts. The earnings per share also showed a
significant increase from € 0.12 in the previous year to € 0.48 in the
business year, thereby exceeding the expectations cited at € 0.45.

At the general meeting a dividend payment of € 0.24 per share will be
proposed. Against the background of the company’s long-term dividend policy
which foresees disbursements in the order of 30 to 50% of profit per share,
this recommendation is at the top end of the dividend scale.

With this performance, ATOSS Software AG looks back on what has proved the
most successful business year in the history of the company. The
exceptionally successful market launch of ATOSS software solutions based on
the new technology standards (J2EE Java) played a pivotal role here, as
well as the strong focus on the core topics of working time management and
personnel deployment planning. On this foundation, ATOSS was able to
achieve considerable gains, especially in the software license business,
but also in other sales areas, thereby elevating key performance figures
such as the operating cash flow, the operating margin and all results key
figures to record levels. At 22 % return on equity (previous year: 2%)
reached the best level since the company was launched on the stock market.

In 2006, software licenses sales were up by 15% to € 4.6 million, and
adjusted by the sales in the previous year attributable to the AENEIS
product that was sold as of January 1, 2006, growth stood at 21%. Lively
customer demand was more clearly reflected by the incoming orders for
software licenses, which rose by 24% to € 5.4 million. In the Services
area, ATOSS boosted sales by 12% to almost € 5.6 million, and the increase
in Hardware came in at 21% to a total of € 2.8 million.

In view of this situation it is evident that the high level of activities
in the research and development area over the past years have paid off, a
fact that is also underlined by orders placed by notable companies such as
Austrian Airlines, T-Punkte, Edeka or Max Bahr. In the case of further
existing customers such as Coca Cola Erfrischungsgetränke AG ATOSS
succeeded in placing the new product generation based on Java J2EE
technology.

The gratifying business developments of the 2006 business year also
strengthen planning security for the ongoing year 2007.

Comfortable capital resources

Following the very high outpayment of funds not required for operational
purposes which amounted to € 21.5 million, ATOSS continues to command first
class financial strength and very comfortable liquidity reserves. As in the
past, the Munich based software house has been able to finance the
expenditures for research and development that remain on a very high level
at € 3.9 million (previous year: € 4.1 million) out of the operating cash
flow.

Operating cash flow on record level: 20% of sales

With operating cash flow for the entire year of € 4.3 million, ATOSS has
not only generated a considerable appreciation over the previous year's
figure (around € 1.4 million in 2005), but has also achieved the strongest
operating cash flow in the history of the company, thereby demonstrating
the notable liquidity generating strength of the business model. In terms
of seasonal developments, the first and third quarter show higher figures
due to the maintenance fee payments, while the second and fourth quarter
tend to show lower, or negative cash flows.

Liquidity once again in the region of € 11 million; capital-asset ratio
stands at 55%

In May, ATOSS had made a dividend payment of € 5.5 per share, which totaled
just under € 21.5 million. Adjusted by this dividend appropriation,
liquidity by a year-on-year comparison rose markedly by € 4.4 million to €
10.8 million, or € 2.75 per share.

Subsequent to the special dividend payout, ATOSS continues to command a
very comfortable capital-asset ratio of 55% (previous year: 84%). On this
foundation, ATOSS generated return on equity of 22% in 2006 following on 2%
in 2005.

Conservative outlook maintained

Against the background of the continuous positive business developments in
2006 the management board is confident that the gratifying company
developments will continue in 2007. Nevertheless, the company is adhering
to its traditionally conservative planning and forecasting policies. With a
look to 2007, ATOSS anticipates a slight improvement in the software
license situation and is assuming overall moderate sales gains in the
course of the year.

Additional potential is also seen with regard to profit, and gains are also
expected over the results of 2006, adjusted by extraordinary income in
2006. This refers to extraordinary income from the sale of the AENIS
software product amounting to € 0.4 million which was recorded in 2006.

As in the 2006 business year, further improvements are possible given a
continuation of the gratifying order situation. The increased acquisition
of premium customers on the basis of a clear positioning, leading edge
technologies and a strong financial position will continue to form the core
of the ATOSS corporate strategy.

GROUP OVERVIEW: annual comparision according to IFRS (Preliminary Figures
for 2006)

TEUR 01.01- Perce- 01.01- Perce- Change
.2006 ntage .2005 ntage
- -
31.12- 31.12-
.2006 .2005
Revenues 21,991 100% 20,416 100% 8%
Software 12,929 59% 12,144 59% 6%
thereof software 4,612 21% 4,001 20% 15%
licences
thereof software 8,317 38% 8,143 40% 2%
maintenance
Consulting 5,558 25% 4,963 24% 12%
Hardware 2,809 13% 2,321 11% 21%
Other 695 3% 988 5% -30%
EBITDA 3,210 15% 1,189 6% >100%
EBITCB (1) 2,868 13% 882 4% >100%
EBIT 2,779 13% 563 3% >100%
EBT 3,193 15% 1,112 5% >100%
Net Income 1,885 9% 459 2% >100%
Cash Flow (5) 4,312 20% 1,406 7% >100%
Financial Resources 10,784 27,836 -61%
(2 / 3)
EPS (in Euro) 0.48 0.12 >100%
Employees (4) 169 177 -5%

GROUP OVERVIEW: Quarterly comparison according to IFRS (Preliminary Figures
for Q4)

TEUR Q4/ 06 Q3/06 Q2/06 Q1/06 Q4/05
Revenue 6,061 5,538 5,275 5,117 5,849
Software 3,459 3,346 3,068 3,056 3,359
thereof software 1,252 1,248 1,038 1,074 1,283
licences
thereof software 2,206 2,098 2,030 1,982 2,076
maintenance
Consulting 1,489 1,361 1,362 1,346 1,336
Hardware 904 648 671 587 836
Other 209 184 173 129 318
EBITDA 798 910 692 811 944
EBITCB (1) 690 819 604 755 910
EBIT 684 802 587 706 830
EBIT-Margin in % 11% 14% 11% 14% 14%
EBT 809 856 666 862 980
Net Income 488 542 358 497 510
Cash Flow (5) -1,045 2,600 107 2,650 -1,469
Financial Resources 10,784 11,664 9,119 30,543 27,836
(2 / 3)
EPS (in Euro) 0.12 0.14 0.09 0.13 0.13
Employees (4) 169 171 162 165 177

(1): EBIT before cost of employee participation program arising from
convertible bonds (2): Liquid funds and marketable securities (3):
Disbursement of EUR 5.50 per share on May 3, 2006 (4): at the end of
quarter (5) adjusted by the effects of the disposal of AENEIS

Upcoming Dates:

14.03.2007 Publication of the (consolidated) annual report

24.04.2007 Press Release Q1 2007

26.04.2007 Annual Meeting, Munich

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

DGAP 31.01.2007

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

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