ATOSS Software AG — Earnings Release 2008

Jan 30, 2009

News Details

Corporate | 30 January 2009 08:29

ATOSS Software AG presents new highs, remains on course for record performance.

ATOSS Software AG / Final Results/Forecast

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

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Munich, January 30, 2009 – As announced, ATOSS Software AG, the workforce
management specialist, has continued to post a record performance in the
fourth quarter. With turnover approaching EUR 27 million in financial year
2008, the company once again recorded an outstanding increase in profits
that far outstripped the 10% rise in sales. The operating result (EBIT) was
up 35% at over EUR 5 million, while earnings per share climbed 40% to EUR
0.88.

In fact, 2008 was by far the most successful financial year in the
company’s history. Thanks to the stability generated by the company’s
business model and the record level of orders on hand for software
licenses, the Management Board is highly optimistic for the current year
2009. The strong development in business is expected to continue.

Despite the massive blow the crisis in the financial markets inflicted on
the economy in the second half of the year, ATOSS Software AG continued to
achieve further growth in both the third and fourth quarters of 2008.
Demand was gratifyingly strong in the company’s core business areas of
software and consulting, with particularly dynamic momentum evident in
software licensing towards the year end.

Strong development in core business sales, new records in orders received
ATOSS recorded total sales up 10% at more than EUR 26.9 million, with
consulting rising 19% to EUR 7.4 million and software climbing 9% to 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. ATOSS also set a new record in orders received for software
licenses, which climbed 8% over the year to reach EUR 6.6 million. Orders
on hand grew by an even more substantial 32% to stand at EUR 2.5 million.

Outstanding 35% rise in profits, margin on sales reaches 19%
All of the company’s key results far outstripped the development in sales
during the reporting period. The operating profit (EBIT) of over EUR 5
million was up 35% on the year before, while net income and earnings per
share were both 40% higher at EUR 3.5 million and EUR 0.88 respectively.
With these figures, despite several increases in forecasts during the year,
ATOSS has clearly exceeded analysts’ expectations.

The operating margin increased from 15% to 19% in financial year 2008,
after hitting a peak of 21% in the second quarter. With the presentation of
its results for 2008, ATOSS Software AG has now completed three record
years in succession. This performance is also reflected in a long-term
comparison of the company’s profit margins. Back in 2005, the quarterly
margin on sales ranged between -3% and 14%. In 2006 the spread was between
11% and 14%, and in 2007 between 14% and 17%. In the medium term the
Management Board aims to achieve a margin of over 20% on steadily
increasing sales.

EUR 14 million in liquidity, cash flow remains distinctly positive
The company’s continuing success in the reporting period was reflected in
its positive cash flow of EUR 2.5 million, which lifted liquidity to EUR 14
million, equal to EUR 3.51 per share (previous year EUR 3.39). These funds
continue to be invested with extreme prudence as the company’s investment
policy remains focused on the preservation of value. The company’s
considerable financial strength is underpinned by the continuing strong
equity ratio of 64 % (previous year: 59 %). ATOSS also set another new
record in its history as the return on equity reached 28% compared with 24%
in the year before.

Sustained high level of investment in research & development
Expenditure on research & development (R&D) was increased by a further 11%
in 2008 to EUR 5.1 million. As in the year before, ATOSS again invested 19%
of sales revenues in targeted product development. This substantial
commitment to R&D enables the Munich-based company to offer its customers a
range of workforce management products and solutions based on the latest
technology that deliver major benefits. The value added is reflected not
just in a marked improvement in service quality coupled with increased
employee satisfaction: it also generates noticeable productivity gains.

ATOSS sees great opportunities, remains on course for record performance
Given the speed with which such business investments pay for themselves,
the current economic climate only serves to substantially increase the
significance of workforce management. The pattern of orders received from
customers confirms the Management Board in this view. The Board believes
the company is outstandingly well placed to participate in consolidation in
the competitive environment and gain fresh market share.

Given the excellent order situation, also in the fourth quarter, coupled
with the high level of orders on hand, the Management Board anticipates
that sales and results will continue at the same record level as last year.

Upcoming dates:

12.03.2009 Publication of the consolidated annual financial statements for
2008
23.04.2009 Press release announcing the 3-monthly statements
30.04.2009 Annual General Meeting in Munich

CONSOLIDATED OVERVIEW : Year-on-year comparison to December 31

In T€ as per 01.01.2008 Proportion of 01.01.2007 Proportion of Change
IFRS - Total sales - Total sales 2008 /
31.12.20 revenues 31.12.20 revenues 2007
08 07
Sales 26,943 100% 24,422 100% 10%
Software 16,017 59% 14,649 60% 9%
of which 6,064 23% 5,409 22% 12%
software
licensing
of which 9,953 37% 9,240 38% 8%
software
maintenance
Consulting 7,363 27% 6,207 25% 19%
Hardware 2,769 10% 2,683 11% 3%
Miscellane- 794 3 % 883 4% -10%
ous
EBITDA 5,429 20 % 4,206 17% 29 %
EBIT 5,046 19% 3,730 15% 35%
EBT 5,115 19 % 4,172 17% 23%
Net income 3,510 13 % 2,501 10% 40%
Cash flow 2,501 9 % 4,152 17% -40%
Liquidity 14,000 13,468 4%
(1/2)
EPS (in 0.88 0.63 40%
euro)
Employees 226 195 16 %
(3)

CONSOLIDATED OVERVIEW : Quarterly development

In T€ as per IFRS Q4/08 Q3/08 Q2/08 Q1/08 Q4/07
Sales 6,876 6,748 6,921 6,399 6,670
Software 4,178 4,126 3,996 3,717 3,900
of which software licensing 1,642 1,603 1,513 1,307 1,419
of which software 2,536 2,523 2,484 2,410 2,481
maintenance
Consulting 1,839 1,860 1,894 1,770 1,740
Hardware 689 540 814 725 678
Miscellaneous 170 222 216 186 352
EBITDA 1,203 1,310 1,521 1,395 1,050
EBIT 1,097 1,214 1,429 1,306 941
EBIT margin in % 16 % 18 % 21 % 20 % 14 %
EBT 1,166 1,394 1,549 1,006 1,075
Net income 831 948 1,046 685 693
Cash flow -1,055 3,034 -2,513 3,035 -1,325
Liquidity (1/2) 14,000 15,425 12,472 16,375 13,468
EPS (in euro) 0.21 0.24 0.26 0.17 0.17
Employees (3) 226 213 207 198 195

(1): Cash and marketable securities (2): Dividend of € 0.31 on April 20,
2008 (previous year € 0.24 on April 27, 2007); (3): at the end of the
quarter

Further information: 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

30.01.2009 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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