ATOSS Software AG — Earnings Release 2008

Mar 12, 2009

News Details

Corporate | 12 March 2009 10:29

ATOSS Software AG: ATOSS Software AG still growing after three record years.

ATOSS Software AG / Final 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.

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Munich, March 12, 2009 - ATOSS Software AG today presented its results for
2008 and was able to report not only a third record year in succession but
also continuing growth in the current year 2009. The Board of Management
describes the present order situation as excellent and expects ATOSS to
record further year on year growth in the first quarter in both software
licensing orders and sales. The forecast for financial year 2009 is firming
up - the Munich-based software company remains on track for record
performance. As a result of this highly gratifying development in business,
at the annual general meeting on April 30, 2009 the company will propose
that shareholders receive a 40% higher dividend of EUR 0.44, representing a
yield of around 6%.

2008 was the most successful year to date in the history of ATOSS Software
AG, the specialist in workforce management. Sales were up 10% at almost EUR
27 million, while profits growth was substantially larger. The operating
result (EBIT) was up 35% at over EUR 5 million, while earnings per share
climbed 40% to EUR 0.88. ATOSS recorded an operating margin on sales of 19%
(previous year 15%).

Workforce management seen as an opportunity in the present crisis
As already reported by the company in an announcement on February 9, 2009,
the generally high demand for ATOSS solutions has continued not just
through the second half of 2008 but also in the current first quarter of
2009. The Board of Management views this steady order pattern as
confirmation of the speed with which corporate investments in workforce
management pay for themselves. Particularly in times of economic
difficulty, this offers a competitive advantage of strategic value. The
resulting clear improvement in service quality coupled with increased
employee satisfaction yields clear productivity gains. In the retail sector
in particular this has helped ATOSS to secure a large number of prominent
customers.

High level of investment in research & development at 19%.
Thanks to its substantial commitment to R&D, ATOSS is able to offer its
customers a range of products and solutions based on the most advanced
technologies that deliver major benefits. Expenditure on R&D in financial
year 2008 was increased by a further 11% to EUR 5.1 million. As in the year
before, the Munich-based company again invested 19% of sales revenues in
ongoing product development.

Cash flow remains highly positive, liquidity stands at EUR 3.51 per share,
equity ratio at a new high
In consideration of the development in earnings and the substantial cash
flow of EUR 2.5 million recorded last year, and with EUR 14 million - equal
to EUR 3.51 per share - in liquidity, ATOSS can well afford this financial
cost. Once again in 2008 these liquid funds that make the company entirely
independent of third-party lending were invested with an a emphasis on the
preservation of value. The company's financial strength is also underpinned
by the continuing strong equity ratio of 64% (previous year: 59 %). ATOSS
also recorded a new record return on equity which rose from 24% in the
preceding year to 28%.

ATOSS share price stable, strong returns for shareholders in recent years,
treasury stock purchased
Since first announcing its dividend policy at the start of 2003, including
the dividend planned for 2008, ATOSS will have distributed a total of EUR
9.56 per share. And considering the movement in the share price over this
period, the stock has generally remained highly stable. Given that the
dividend payments have been largely tax-free, shareholders have achieved a
very respectable return. Despite this stability, however, the Board of
Management believes that the company is valued at a very low level relative
to the sharply upward trend in profits, as the good figures have not been
rewarded by the stock markets. The ratio of enterprise value to expected
operating profits during the second half of last year was generally between
two and three. For this reason the company purchased a total of 44,894 own
shares in the fourth quarter at an average price of EUR 6.51.

Record orders received and on hand in 2008
With overall sales up 10% at more than EUR 26.9 million, ATOSS recorded
substantial growth in consulting in financial year 2008 as revenues in this
segment rose 19% to EUR 7.4 million. Software sales were up 9% at EUR 16
million. Under the heading of software, the licensing business grew by 12%
to EUR 6.1 million, while maintenance was 8% higher at over EUR 9.9
million. However it was the new record levels of orders received and on
hand for software licenses that will be decisive for the company's
continuing success. By December 31, 2008, orders received in this segment
were up by 8% over the year before at EUR 6.6 million, while orders on hand
had risen by 32% to stand at EUR 2.5 million.

Outlook positive, record performance set to continue
ATOSS has consistently recorded strong development in its business since
the end of 2005. During the period from 2006 to 2008 overall sales have
been increased by 32%, with sales of software licenses up 52%, consulting
sales up 48% and operating profits (EBIT) up by almost 800%.

The Board of Management regards the generally excellent order situation and
the continuing growth in the current first quarter as confirmation of its
already announced expectation that sales and profits in financial year 2009
should continue at last year's record levels. The Board also anticipates
that against the background of the expected consolidation in the
competitive environment, ATOSS will increase its share of the market.

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
Tel.: +49 (0) 89 4 27 71 - 265
Fax +49 (0) 89 4 27 71 - 100
investor.relations@atoss.com

12.03.2009 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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