ATOSS Software AG — Earnings Release 2008

Oct 24, 2008

News Details

Corporate | 24 October 2008 07:58

ATOSS Software AG – Best nine-month result in the history of the company

ATOSS Software AG / Quarter Results

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Corporate News

ATOSS Software AG – Best nine-month result in the history of the company

Munich, 24.10.2008 – ATOSS Software AG, the specialist for software
solutions revolving around intelligent workforce management and personnel
deployment, has succeeded in continuing its growth course. According to
preliminary figures, revenue in the first nine months rose by 13% to € 20.1
million (previous year: € 17.8 million).

Once again, the results showed disproportionately strong gains on the back
of very gratifying sales developments. As of September 30, 2008, operating
earnings (EBIT) of € 3.9 million came in at 42% over the previous year
figures (€ 2.8 million), representing a sales margin of 20% (previous year:
16%). With this performance ATOSS has already exceeded the complete prior
year result in the first three quarters, and is set to generate new record
figures in 2008.

The consistently strong interest customers are showing in ATOSS solutions
underlines the positive outlook. As of September 30, 2008, orders at hand
for software licenses were up by 64% to € 2.3 million (previous year: € 1.4
million).

With this performance ATOSS Software AG has continued its consistent growth
course and has further increased the stability of the business model
through the sound increase in orders on the books for software licenses. In
view of the strong developments in results the management board has
confirmed its forecasts in concrete terms. The last expectations envisaged
considerably exceeding the annual forecast of more than € 4 million
(previous year: € 3.7 million) in the 2008 business year, and generating
EBIT in the region of € 5 million.

Strong sales developments in software licenses and consulting

After ATOSS had already put in gratifying growth in the first half of 2008,
this trend continued in the third quarter. Sales were up by 11% to € 6.7
million (previous year € 6.1 million), with strong demand for consulting
particularly conspicuous, in addition to software licenses.

All in all, in the first nine months of 2008 ATOSS generated sales gains of
13%, reflected by an increase from € 17.8 million in the previous year to €
20.1 million. In this context, the Munich headquartered software company
achieved marked new customer growth especially in the wholesale/retail
sector with additional renowned customers being added to the client roster.

Rising demand was especially reflected by the strong sales developments in
the software licenses and consulting areas. In the first nine months of
2008, sales of software licenses were up by 11% from € 4.0 million to € 4.4
million. Incoming orders for software licenses showed even stronger
developments. The gains recorded amounted to 16%, from € 4.1 million to €
4.7 million in the first nine months of 2008. The order book volume for
software licenses was even up by 64% over the prior year figures, and rose
from € 1.4 million to € 2.3 million. In connection with new projects,
consulting sales showed a marked 24% increase from € 4.5 million to € 5.5
million.

High stability is a cornerstone of the corporate strategy

In connection with the growth in software licenses, the software
maintenance area showed consistently positive developments. In the first
nine months of 2008 software maintenance proceeds grew by 10% from € 6.8
million to € 7.4 million, and thereby account for 37% (previous year: 38%)
of the consolidated sales. Thanks to a customer base built up over the long
term, ATOSS enjoys a high level of stability in this area.

In addition, ATOSS derives stability in sales due to the fact that software
licenses are usually booked according to project progress and not at the
time that contracts are concluded. By comparison with the prior year date,
the volume of orders on the books rose by 64% from € 1.4 million to the
current figure of € 2.3 million.

Last but not least, the stability of the company is also ensured by the
fact that the considerable reserves of liquid funds amounting to a total of
€ 15.4 million (previous year: € 14.8 million) are now nearly exclusively
invested in interest bearing checking accounts, fixed term deposits or
German federal treasury notes with short residual terms. In future too, our
investment policies will emphasize the aspect of retaining value, while
giving due consideration to changing market conditions.

Repeated disproportionately strong performance developments, sales margin
now at 20%

In the third quarter of 2008 ATOSS generated an operating result in excess
of € 1.2 million (previous year: € 0.9 million). With this performance in
the period from January to September 2008 EBIT was boosted by 42% to almost
€ 4.0 million (previous year: € 2.8 million). Net earning (€ 2.7 million
following € 1.8 million in the prior year) and earnings per share of € 0.67
(previous year € 0.46) improved disproportionately measured against sales
figures. The operating sales margin amounted to 20% following on 16% in the
previous year.

On the back of continued, extremely positive business developments
operating cash flow of € 3.0 million was generated in the third quarter
(previous year: € 3.2 million), while liquidity stood at € 15.4 million as
of September 20, 2008 (previous year: € 14.8 million). The company’s high
financing strength is reflected by the continued very high equity ratio of
59% (previous year: 52%).

Low market prices prompt ATOSS to repurchase own shares in October

The financial market crises and the very weak markets also impacted
strongly on the ATOSS share. In view of the valuation of the company,
management has decided to buy back shares. The ratio between the value of
the company, i.e. enterprise value (market capitalization net of cash and
marketable securities) and the expected EBIT for the 2008 business year is
between 2 and 3. According to the share buyback authorization granted at
the Annual General Meeting of April 29, 2008, company management had,
proceeding on the basis of several board resolutions, purchased a total of
35,343 shares at an average price of € 6.36 per share on the stock market
in the period from October 7 to October 17, 2008. Based on the latest
resolution, the board reserves the right to buy back up to 14,657 shares up
to October 30, 2008, as well as to adopt further share buyback resolutions
depending on future valuation scenarios.

High order book volume secures growth

Considering the results already achieved in the ongoing business year, as
well as the marked rise in incoming orders and orders on the books, the
management board is assuming continued positive company developments.
Following on an operating result of € 3.7 million in the prior year, EBIT
in the region of € 5 million is anticipated as of December 31, 2008. With
this performance ATOSS Software AG is targeting another record annual
performance in the history of the company.

CONSOLIDATED OVERVIEW: 9-Month comparison as of September 30, 2008

In T€ as 01.01.2008 Proportion 01.01.2007 Proportion Change
per IFRS - of
total - of
total 2008 /
30.09.2008 revenues 30.09.2007 revenues 2007
Sales 20,067 100 % 17,752 100 % 13 %
revenues
Software 11,840 59 % 10,748 61 % 10 %
Software 4,423 22 % 3,990 22 % 11 %
licenses
Software 7,417 37 % 6,758 38 % 10 %
mainten-
ance
Consult- 5,524 28% 4,467 25 % 24 %
ing
Hardware 2,080 10 % 2,005 11 % 4 %
Miscell- 624 3 % 532 3 % 17 %
aneous
EBITDA 4,225 21 % 3,155 18 % 35 %
EBIT 3,948 20% 2,789 16 % 42 %
EBT 3,949 20 % 3,097 17 % 28 %
Net 2,679 13 % 1,808 10 % 48 %
Income
Cash Flow 3,556 18 % 5,477 31 % -35 %
Liquidity 15,425 14,841 4 %
(1/2)
L
EPS (in 0.67 0.46 46 %
€)
Employees 213 192 11 %
(3)

CONSOLIDATED OVERVIEW: Quarterly comparison

In T€ as per IFRS Q3/08 Q2/08 Q1/08 Q4/07 Q3/07
Sales revenues 6,748 6,921 6,399 6,670 6,099
Software 4,126 3,996 3,717 3,900 3,728
Software licenses 1,603 1,513 1,307 1,419 1,482
Software maintenance 2,523 2,484 2,410 2,481 2,300
Consulting 1,860 1,894 1,770 1,740 1,489
Hardware 540 814 725 678 644
Miscellaneous 222 216 186 352 184
EBITDA 1,310 1,521 1,395 1,050 1,020
EBIT 1,214 1,429 1,306 941 907
EBIT margin in % 18 % 21 % 20 % 14 % 15 %
EBT 1,394 1,549 1,006 1,075 1,028
Net Income 948 1,046 685 693 564
Cash Flow 3,034 -2,513 3,035 -1,325 3,238
Liquidity (1/2) 15,425 12,472 16,375 13,468 14,841
EPS (in €) 0.24 0.26 0.17 0.17 0.14
Employees (3) 213 207 198 195 192

(1): Cash and marketable securities; (2): Dividend of € 0.31 per share paid
on April 30, 2008 (previous year: 0.24 € on April 27, 2007); (3): At the
end of the quarter

Upcoming dates:

11.11.2008 Analyst conference, Frankfurt am Main

21.11.2008 Publication of nine months’ statement

Further information: http://www.atoss.com Contact: ATOSS
Software AG
Christof Leiber / Management board member
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

ATOSS Software AG, Am Moosfeld 3, D-81829 München
Christof Leiber / Vorstand
Tel.: +49 (0) 89 4 27 71 – 265, Fax: +49 (0) 89 4 27 71 – 100
investor.relations@atoss.com

24.10.2008 Financial News transmitted by DGAP

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
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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