ATOSS Software AG — Earnings Release 2008

Jul 25, 2008

News Details

Corporate | 25 July 2008 08:15

ATOSS Software AG: ATOSS Software AG reports new record figures

ATOSS Software AG / Quarter Results/Forecast

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

---

Corporate News

ATOSS Software AG reports new record figures, half-year results
significantly above last year, margin on sales now 21%, forecast raised.

Munich, July 25, 2008 – ATOSS Software AG, the specialist in software
solutions covering all aspects of intelligent workforce management and
scheduling, continues to record undiminished growth. Provisional figures
show sales in the first half-year up 14% at EUR 13.3 million (previous year
EUR 11.7 million). Meanwhile, in the second quarter ATOSS accelerated sales
growth still further with an increase of 17%.

Key results have improved even more strongly with operating profits to June
30, 2008 coming in at more than € 2.7 million, up 45% on the year before (€
1.9 million), in line with the margin on sales of 21%.

ATOSS Software AG has not only maintained but actually accelerated its
sustained pattern of growth. In view of the substantial increase in orders
on hand as well as the current results, the Management Board expects this
positive development to continue and has adjusted its forecasts
accordingly. The operating profit of over € 4 million (previous year € 3.7
million) thus far expected for the financial year is now likely to be
substantially exceeded.

Strong development in sales of software licenses and consulting

Having already put on satisfying growth in the first quarter of 2008, ATOSS
was able to record a further marked increase in this trend in Q2. Sales
climbed 17% to above € 6.9 million (previous year € 5.9 million), with
consulting services in strong demand alongside software licenses.

Overall in the first half of 2008 ATOSS recorded sales up by 14% from €
11.7 million last year to € 13.3 million. In the process, the Munich-based
software specialist has added a substantial number of new customers to its
portfolio, including more prominent clients in the retail sector. This
sector in particular is experiencing an upturn in investment, as
increasingly flexible opening times call for professional personnel
resource planning.

This rising demand was reflected in particular in burgeoning sales of
software licenses and consulting services. Turnover in software licenses in
the first half of 2008 rose by 12% from € 2.5 million to € 2.8 million,
with consulting in association with new projects actually putting on 23%
from € 3.0 to € 3.7 million.

Robust stability is a key element in corporate strategy

Following on from the growth in software licenses, ATOSS continues to
record constant positive development in the field of software maintenance.
In the first half of 2008, income from software maintenance revenues
climbed 10% from € 4.5 million to € 4.9 million, and accounted for 37% of
Group turnover. With a customer base established over a long period of
time, ATOSS enjoys considerable stability in this field.

In addition to further enhance the stability of its turnover, ATOSS
generally books software licensing sales in line with project progress,
rather than at the time contracts are concluded.

To underpin further growth, expenditure on research and development in the
first half was also increased by 12% to € 2.4 million (previous year € 2.2
million). The company has also continued to expand its consulting
capacities which remain well utilized. Against this background ATOSS looks
forward to further substantial growth.

Outstanding increase in results, operating margin climbs to 21%

After booking an operating profit of € 1.3 million in Q1, ATOSS went on to
achieve a result in excess of € 1.4 million (previous year € 1.0 million)
in the second quarter of 2008. EBIT in the first half of 2008 was
accordingly up 45% at over € 2.7 million (previous year € 1.9 million).
Similarly, the net result (€ 1.7 million, up from € 1.2 million last year)
as well as earnings per share at € 0.43 (previous year € 0.31) also rose at
a disproportionate rate relative to sales. The operating margin reached
21%, compared with 16% in the preceding year.

Operating cash flow in the first half remained positive at € 0.5 million,
but lagged behind the previous year’s figure of € 2.2 million. Even after
paying a dividend of around € 1.2 million, liquidity was up 6% over the
year before at € 12.5 million. ATOSS thus had funds of € 3.12 per share in
circulation at its disposal, compared with € 2.97 in the year before. The
company’s financial strength remains undiminished with a strong equity
ratio of 61% (previous year 57%).

Strong order book underpins further profitable growth

With EBIT of € 2.7 million already booked to June 30, 2008 and orders on
hand for software licenses up 32% at € 2.0 million (previous year € 1.5
million) due in particular to the strong order intake in the second
quarter, the Management Board expects the business to continue to develop
along highly positive lines. The previous forecast which foresaw a
full-year operating result in excess of € 4 million (previous year € 3.7
million) for 2008 has therefore been revised upwards. EBIT is now expected
to be substantially above € 4 million, with the company achieving a new
record result.

Upcoming dates:

August 22, 2008 Publication of the 6-monthly financial statements

October 24, 2008 Press release announcing the 9-monthly statements

November 21, 2008 Publication of the 9-monthly financial statements

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

CONSOLIDATED OVERVIEW : Half-yearly comparison to June 30

In T€ as per 01.01.2008 Proportion of 01.01.2007 Proportion of Chan
IFRS - Total sales - Total sales ge
30.06.2008 revenues 30.06.2007 revenues
Sales 13,319 100 % 11,653 100 % 14 %
Software 7,713 58 % 6,966 60 % 11 %
of which 2,820 21 % 2,508 22 % 12 %
software
licensing
of which 4,894 37 % 4,459 38 % 10 %
software
maintenance
Consulting 3,664 28 % 2,978 26 % 23 %
Hardware 1,540 12 % 1,361 12 % 13 %
Miscellan- 403 3 % 347 3 % 16 %
eous
EBITDA 2,916 22 % 2,135 18 % 37 %
EBIT 2,735 21 % 1,882 16 % 45 %
EBT 2,555 19 % 2,069 18 % 24 %
Net income 1,731 13 % 1,244 11 % 39 %
Cash flow 522 4 % 2,239 19 % -77 %
Liquidity 12,472 11,743 6 %
(1)
L
EPS (in 0.26 0.31 38 %
euro)
Employees 207 188 10 %
(3)

CONSOLIDATED OVERVIEW : Quarterly comparison with the previous year

In T€ as per IFRS Q2/08 Q1/08 Q4/07 Q3/07 Q2/07
Sales 6,921 6,399 6,670 6,099 5,924
Software 3,996 3,717 3,900 3,782 3,594
of which software licensing 1,513 1,307 1,419 1,482 1,345
of which software 2,484 2,410 2,481 2,300 2,249
maintenance
Consulting 1,894 1,770 1,740 1,489 1,486
Hardware 814 725 678 644 664
Miscellaneous 216 186 352 184 180
EBITDA 1,521 1,395 1,050 1,020 1,147
EBIT 1,429 1,306 941 907 1,014
EBIT margin in % 21 % 20 % 14 % 15 % 17 %
EBT 1,549 1,006 1,075 1,028 1,108
Net income 1,046 685 693 564 664
Cash flow -2,513 3,035 -1,325 3,238 -762
Liquidity (1/2) 12,472 16,375 13,468 14,841 11,743
EPS (in euro) 0.17 0.17 0.17 0.14 0.17
Employees (3) 207 198 195 192 188

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

25.07.2008 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

End of News DGAP News-Service

---