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ATOSS Software AG Earnings Release 2010

Jan 31, 2011

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Earnings Release

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News Details

Corporate | 31 January 2011 08:30

ATOSS Software AG posts new record figures for 2010

ATOSS Software AG / Key word(s): Final Results

31.01.2011 / 08:30

ATOSS Software AG posts new record figures for 2010

Munich, January 31, 2011 – for the fifth year in succession ATOSS Software AG has achieved record results. Provisional figures show that the specialist in workforce management recorded a further slight increase in sales in 2010, bringing the total to EUR 29.3 million (previous year: EUR 29.1 million). Turnover in the company’s core software business rose by 6% to EUR 17.8 million (previous year: EUR 16.8 million), ahead of the market trend.

Operating profits (EBIT) were around 24% higher at EUR 6.8 million (previous year: EUR 5.5 million), lifting the return on sales on an EBIT basis to 23%, compared with last year’s 19%. With this level of profitability ATOSS has set new records in the history of the company. Moreover, operating profits (EBIT) exceeded the already increased forecast announced on October 12, 2010 as well as market expectations.

The highly positive development in business over the past five years shows that the ATOSS Software AG business model is firmly anchored in the growth market for workforce management. The company’s sustained success derives from its consistent implementation of a strategy that focuses on enhancing customer benefits. In order to maximize these benefits, ATOSS invests substantially in the technology and capabilities of its products and continues to develop its organization with a dedicated sector-specific focus.

Business was particularly positive in Q4

In financial year 2010 ATOSS achieved sales amounting to EUR 29.3 million (previous year: EUR 29.1 million). The development in the core software business was particularly gratifying. While BITKOM anticipated software market growth of 2% for 2010, ATOSS boosted sales by 6% to EUR 17.8 million (previous year: EUR 16.8 million). The fourth quarter was particularly buoyant with turnover reaching EUR 7.9 million (previous year: EUR 7.7 million) – the highest quarterly sales in the company’s history. Meanwhile orders for software licenses booked in Q4 2010 also grew strongly to EUR 2.0 million (previous year: EUR 1.6 million). At the year-end orders on hand for software licenses stood at EUR 3.1 million (previous year: EUR 3.3 million), up from EUR 2.7 million on September 30, 2010.

ATOSS scores for earnings quality and a strong balance sheet

In 2010 the operating profit (EBIT) climbed 24% to EUR 6.8 million (previous year: EUR 5.5 million), while earnings before taxes (EBT) increased by 19% to EUR 7.0 million (previous year: EUR 5.9 million). Net income rose 21% to EUR 4.8 million (previous year: EUR 4.0 million), while earnings per share at EUR 1.21 (previous year: EUR 1.00) also reached a new high.

ATOSS continues to report strong cash flow, liquidity and equity figures. The company generated cash flow from operations of EUR 5.8 million (previous year: EUR 7.6 million), equivalent to 20% of sales. As in past years this was once again a strong performance, with the 2010 reporting period being notable for a steep reduction in receivables. Liquidity rose by 7% EUR 19.3 million to EUR 20.7 million, equivalent to EUR 5.22 per share compared with EUR 4.88 last year. On the balance sheet closing date the equity ratio stood at 63% (previous year 57%).

ATOSS outstrips comparative index in its stock market listing anniversary year, no decision yet on dividend

In the past four years in particular, the price of ATOSS stock, which made its stock market debut in March 2000, has developed strongly. Once again in 2010 ATOSS put the benchmarks in the shade with a performance (plus 38%) which, for example, clearly exceeded the comparative DaxSubsector Software Performance Index (plus 19%).

In addition to these price gains, the company is also notable for its dividend payments. ATOSS pursues a dividend policy that is based on dependability and reliability. Since 2003 the company has made a point of sharing its earnings per share in equal measure with its shareholders. It is expected that the Management and Supervisory Boards will decide upon the dividend to be proposed to the annual general meeting to be held in Munich on May 3, 2011 when the Supervisory Board meets to discuss the annual accounts on February 22. Last year on May 3, 2010, ATOSS paid a dividend of EUR 0.50 per share, compared with EUR 0.44 in the year before.

ATOSS is a specialist in a growth market

In the battle for market share, tangible means of increasing productivity are a high priority for companies competing in our globalized economy. In the past successes have been achieved in purchasing and production with new approaches to supply chain management (SCM) and enterprise resource planning (ERP). Now decision-makers are increasingly focusing their attention on ways to more appropriately deploy their workforce to meet demand situations. This area holds considerable potential that can be tapped at a comparatively modest investment cost which pays for itself in a very short time. Workforce management is acquiring an unstoppable momentum which serves to underpin forecasts for market development. IDC Worldwide expects the market for workforce management in 2011 to grow by 8.5% to some 1.52 billion US dollars.

ATOSS plans to continue its success with quality earnings

Following on from the highly positive business recorded in Q4 2010, in a conservative outlook the Board of Management expects to see stable to moderately increasing sales. Accordingly for the sixth year in succession ATOSS should remain on course for a record performance. However the focus of measures planned for 2011 is not so much on developing sales as on selectively broadening the company’s business model and exploiting the prospects for growth in additional sectors and regions. The company therefore plans to increase its research and development expenditure and make further investments. Despite this conscious commitment to the future development in business at ATOSS, the management conservatively estimates that the margin on sales on an EBIT basis in 2011 will be around 20%.

Upcoming dates:

11.03.2011 Publication of the consolidated annual financial statements for 2010

26.04.2011 Press release – statements for Q1 2011

03.05.2011 Annual general meeting in Munich

16.05.2011 Publication of the report for Q1 2011

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

(2010 figures are provisional)

In TEUR (as per IFRS) 01.01.2010

31.12.2010
Proportion of

Total sales revenues
01.01.2009

31.12.2009
Proportion of

Total sales revenues
Change

2010 / 2009
Sales 29,314 100% 29,087 100% 1 %
Software 17,847 61% 16,771 58% 6 %
of which software licensing 6,541 22% 6,140 21% 7 %
of which software maintenance 11,306 39% 10,631 37% 6 %
Consulting 7,914 27% 8,518 29% -7 %
Hardware 2,452 8% 2,301 8% 7 %
Miscellaneous 1,101 4% 1,497 5% -26 %
EBITDA 7,290 25% 5,903 20% 23%
EBIT 6,840 23% 5,519 19% 24 %
EBT 6,958 24% 5,854 20% 19 %
Net income 4,799 16% 3,964 14% 21 %
Cash flow 5,795 20% 7,612 26% -24 %
Liquidity (1/2) 20,691 19,328 7 %
EPS (in euro) 1.21 1.00 21 %
Employees (3) 247 234 6 %

CONSOLIDATED OVERVIEW : Quarterly comparison (figures for Q4 2010 are provisional)

In TEUR (as per IFRS) Q4/10 Q3/10 Q2/10 Q1/10 Q4/09
Sales 7,870 7,178 7,118 7,148 7,696
Software 4,652 4,384 4,459 4,352 4,331
of which software licensing 1,711 1,544 1,658 1,628 1,590
of which software maintenance 2,941 2,840 2,801 2,724 2,741
Consulting 2,204 1,928 1,894 1,889 2,382
Hardware 809 502 601 540 726
Miscellaneous 206 364 164 367 257
EBITDA 1,684 1,928 1,894 1,785 1,239
EBIT 1,582 1,815 1,779 1,663 1,132
EBIT margin in % 20% 25% 25% 23% 15%
EBT 1,642 1,831 1,792 1,693 1,260
Net income 1,183 1,243 1,220 1,153 867
Cash flow -1,168 4,250 -403 3,116 386
Liquidity (1/2) 20,691 21,980 17,789 20,249 19,328
EPS (in euro) 0.30 0.31 0.31 0.29 0.22
Employees (3) 247 247 242 236 234

(1): Cash and marketable securities (2): Dividend of EUR 0.50 per share on 03.05.2010 (previous year EUR 0.44); (3): At the end of the quarter/year

For further information visit: 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 – 0

Fax: +49 (0) 89 4 27 71 – 100

[email protected]

End of Corporate News


31.01.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

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Language: English
Company: 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: [email protected]
Internet: www.atoss.com
ISIN: DE0005104400
WKN: 510440
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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110376  31.01.2011