ATOSS Software AG — Earnings Release 2007

Jan 31, 2008

News Details

Corporate | 31 January 2008 08:25

ATOSS Software AG: Accelerated growth, record performance continues

ATOSS Software AG / Final Results/Quarter Results

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: Accelerated growth, record performance continues.

Munich, January 31, 2008 – In 2007, ATOSS Software AG, the specialist for
software solutions revolving around intelligent workforce management and
scheduling, has once again stepped up growth, following on the record
performance of the 2006 business year. Both the fourth quarter as well as
the 2007 business year have set new top performance figures. In 2007, ATOSS
generated sales of EUR 24.4 million (previous year: EUR 22.0 million) and
boosted the results of ordinary business activities by 34% to more than EUR
3.7 million (previous year: EUR 2.8 million). In view of the very strong
order intake, continued positive corporate development is anticipated.

In 2007, especially strong sales growth reflected by a 17% increase to EUR
5.4 million (previous year: EUR 4.6 million) was generated by the company’s
core business, namely software licenses sales. The software maintenance
sales rose by 11% to EUR 9.2 million (previous year: EUR 8.3 million) and
consulting sales were up by 12% to EUR 6.2 million (previous year: EUR 5.6
million).

Decisive for the 2008 business year is the fact that both the intake of
orders, as well as the orders on the books show strong growth. Incoming
software licenses orders rose to EUR 6.1 million (previous year: EUR 5.4
million), while orders on hand increased to EUR 1.9 million as per December
31, 2007 (previous year: EUR 1.3 million).

The gratifying high volume of order intake and the ensuing level of orders
on the books in software licenses underscore the stability of the sustained
and positive trends at ATOSS. In view of this situation, the company’s
management board expects a continuation of the profitable growth course.

Strong performance developments

The all-time record sales set since the foundation of the company in 1987
were followed by record figures in all key performance indicators
accordingly. The result of ordinary business activities (EBIT) came in
above EUR 3.7 million and not only clearly exceeded the prior year figure
by 34%, but also surpassed the upvalued forecast issued in October 2007 by
at least EUR 3.4 million. With these figures, ATOSS has generated a sales
of margin of 15% (previous year: 13%).

By comparison with the prior year, earnings per share were up from EUR 0.48
to EUR 0.63, and thereby markedly exceeded analyst expectations that had
been repeatedly pegged higher up to EUR 0.57 at the last estimation.

Continued upwards trend in dividend outpayments

At the Annual General Meeting a dividend outpayment of EUR 0.31 per share
will be proposed (previous year: EUR 0.24), which equals a dividend yield
of around 4%. According to the ATOSS dividend policy, the proposal is once
again at the upper limit of the dividend outpayment bandwidth of 30% to
50%.

R&D expenditures equal 19% of sales, cash flow at 17%

As business success is mainly driven by the focus of the software portfolio
on the core topics of working time management and workforce management and
scheduling, as well the ability to remain on the leading edge of technology
standards (J2EE Java), these high investments are especially instrumental
in securing the technology lead that ATOSS holds.

In view of the above, expenditures on research and development were
increased by 18% from EUR 3.9 million to EUR 4.6 million. ATOSS commits 19%
of sales to the technical and functional further development of the
company’s products. Against the backdrop of the very positive business
developments, these above average investments continued to be financed out
of the strong cash flow. In the year under report, the cash flow was
recorded at EUR 4.2 million (previous year: EUR 4.3 million) with which
ATOSS has generated a cash flow equalling 17% of sales. Once again, these
figures document the liquidity generating strength of the business model in
an impressive manner.

Liquidity of EUR 13.5 million, equity return at top level at 24%

Dynamic business developments at ATOSS also resulted in a further rise in
liquidity to a total of EUR 13.5 million as per December 31, 2007(previous
year: EUR 10.8 million) and EUR 3.39 per share (previous year: EUR 2.75).
This puts the equity ratio at 59% (previous year: 55%).

ATOSS generated an equity return of 24% following on 22% in the prior
year,and has thereby set a new best figure since 2000, the year the company
was launched on the stock market.

Outlook positive, investment confidence remains strong

In the 2007 business year the company succeeded in stepping up growth in
sales and results by a considerable measure. Posting a sales increase of
11%, ATOSS succeeded in outpacing market growth and thereby staked out
additional market shares. In its 20th year, the company has secured an
excellent position, and the management board, based on the strong order
intake, is anticipating continued strong business developments. Neither
throughout the course of the last year nor currently are declining customer
interest or weaker investment propensity in evidence. Consequently, the
company expects continued profitable growth in the ongoing 2008 business
year.

GROUP OVERVIEW : Year-on-year comparison as of December 31 (figures for
2007 are provisional!)

In T€ as per IFRS 01.01.2007 Propo- 01.01.2006 Propo- Cha-
- 31.12.2007 rtion - 31.12.2006 rtion nge
of of
Revenues 24,422 100% 21,991 100% 11%
Software 14,649 60% 12,929 59% 13%
of which software 5,409 22% 4,612 21% 17%
licenses
of which software 9,240 38% 8,317 38% 11%
maintenance
Consulting 6,207 25% 5,558 25% 12%
Hardware 2,683 11% 2,809 13% -4%
Other 883 4% 695 3% 27%
EBITDA 4,206 17% 3,210 15% 31%
EBIT 3,730 15% 2,779 13% 34%
EBT 4,172 17% 3,193 15% 31%
Net income 2,501 10% 1,885 9% 33%
Cash flow 4,152 17% 4,312 20% -4%
Liquidity (1/2) 13,468 10,784 25%
EPS (in euro) 0.63 0.48 31%
Employees (3) 195 169 15%

GROUP OVERVIEW : Quarters in T€ (as per IFRS) (Figures for Q4/2007 are
provisional)

In T€ as per IFRS Q4/07 Q3/07 Q2/07 Q1/07 Q4/06
Revenues 6,670 6,099 5,924 5,729 6,061
Software 3,900 3,782 3,594 3,373 3,459
of which software licenses 1,419 1,482 1,345 1,163 1,252
of which software maintenance 2,481 2,300 2,249 2,210 2,206
Consulting 1,740 1,489 1,486 1,492 1,489
Hardware 678 644 664 697 904
Other 352 184 180 167 209
EBITDA 1,050 1,020 1,147 988 798
EBIT 941 907 1,014 868 684
EBIT-Marge in % 14% 15% 17% 15% 11%
EBT 1,075 1,028 1,108 960 809
Net Income 693 564 664 580 488
Cash Flow -1,325 3,238 -762 3,000 -1,045
Liquidity (1/2) 13,468 14,841 11,743 13,619 10,784
EPS (in euro) 0.17 0.14 0.17 0.15 0.12
Employees (3) 195 192 188 180 169

(1) Cash and marketable securities (2) Dividend of € 0.24 per share paid on
April 27, 2007 (3) At the end of the quarter

Upcoming dates:

March 13,2008 Consolidated financial statements / Annual report / Press
conference on financial statements

April 24, 2008 Press release on first quarter

April 29, 2008 Annual General Meeting, Munich

Further information is available from: http://www.atoss.com
Contac: ATOSS Software AG
Christof Leiber / 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

31.01.2008 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

---