ATOSS Quarterly Report Q3.2013

Letter to Shareholders

Andreas F.J. Obereder and Christof Leiber Board of Management, ATOSS Software AG

Dear Shareholders, Ladies and Gentlemen,

We are very satisfied with the course of business in the first nine months of 2013. The third quarter saw us record the highest individual quarterly sales in our history, and development over the past nine months shows that ATOSS Software AG remains on course for further record performance.

This success is essentially due to the huge importance of systems extending to all aspects of efficient workforce management and staff deployment as an instrument of strategic control and development at modern business undertakings. Those responsible at a corporate level are faced with great challenges. They must put in place new conditions to support the modern, flexible world of work, while at the same time fighting to maintain their competitive edge and value added. The only organizations to survive in this environment will be those that respond flexibly, proactively, adaptably and with initiative in times of change. This is a complex task, and one that is inconceivable without innovative IT solutions to optimize staff deployments.

Players who fail to address and adapt to the modern, flexible world of work will cease to be perceived as modern employers and lose their attraction. On the one hand, it is a question of our desire for greater autonomy, which as studies in recent years have proved, is not only of personal relevance: It is also of significant economic importance for business undertakings, leading as it does to greater motivation and productivity. For the workers of Generation Y, this urge is both natural and indispensable to the way they perceive the world of work. If companies cannot offer this group of employees what they seek, the battle for well trained, skilled workers and managers is already as good as lost. In Germany, just under 60 percent of companies offer their employees a degree of flexibility in their working conditions. Worldwide the proportion is 81 percent: It is clear beyond doubt that we have ground to make up.

Another important aspect for companies lies in the increasingly demanding management and control of the workforce. The boundaries to the mobile, flexible working world have long since been crossed. The technological advances that permit ever faster data transfer and ever more powerful devices are not to be stopped. Industry association BITKOM expects, for example, that sales of tablet computers will increase by 48 percent to EUR 2.8 billion, putting them on a par for the first time with sales of desktop PCs. On the other hand, this increase in mobility in the working world must also be managed. The key lies in IT-based solutions.

We are intensively addressing the issue of "mobile working", which in our view holds enormous potential. We offer our customers solutions and products to support holistic workforce management which bring long-term benefits for both businesses and employees. Our success is confirmation of our projections and assessments. We remain on course for further growth, for 2013 we expect an EBIT margin of securely over 20 percent.

Yours sincerely,

Andreas F.J. Obereder Christof Leiber (Chairman of the Management Board/CEO ) (Member of the Management Board)

atoSS customer SWISS Airlines

Facts Overview

ECONOMIC BACKGROUND:

Global economic revival in the first half of 2013
The German economy is experiencing an upturn in autumn 2013; GDP expected to rise by 0.4 percent this year
Sales of tablet computers expected to equal desktop PC sales for the first time in 2013 at EUR 2.8 billion

ATOSS SOFTWARE AG:

Strongest quarterly sales in the company's history
Full-year outlook: Growth in sales with an EBIT margin securely above 20 percent

	01.01.2013 - 30.09.2013	Proportion of Total sales revenues	01.01.2012 - 30.09.2012	Proportion of Total sales revenues	Change 2013/2012
Sales	26,480	100%	24,515	100%	8%
Software	16,229	61%	14,851	61%	9%
Software licenses	5,573	21%	5,056	21%	10%
Software maintenance	10,656	40%	9,795	40%	9%
Consulting	6,587	25%	6,534	27%	1%
Hardware	2,588	10%	2,063	8%	25%
Miscellaneous	1,076	4%	1,067	4%	1%

EBITDA	6,913	26%	6,340	26%	9%
EBIT	6,486	24%	5,918	24%	10%
EBT	2,916	11%	6,756	28%	-57%
Net earnings	2,133	8%	4,563	19%	-53%
Cash Flow	8,448	32%	5,300	22%	59%
Liquidity (1/2)	16,177		28,656		44%
EPS (in EUR)	0.54		1.15		-53%
Employees (3)	280		273		3%

CONSOLIDATED OVERVIEW AS PER IFRS: 9-MONTH COMPARISON IN KEUR

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN KEUR

	Q3/13	Q2/13	Q1/13	Q4/12	Q3/12
Sales	8,949	8,840	8,691	8,490	8,242
Software	5,369	5,585	5,275	5,292	4,977
Licenses	1,779	2,025	1,769	1,931	1,655
Maintenance	3,590	3,560	3,506	3,361	3,322
Consulting	2,165	2,264	2,158	2,182	2,048
Hardware	1,126	569	893	600	851
Others	289	422	365	416	366

EBITDA	2,373	2,322	2,218	1,851	2,028
EBIT	2,230	2,186	2,070	1,702	1,881
EBIT margin in %	25%	25%	24%	20%	23%
EBT	2,487	-1,968	2,397	1,772	2,283
Net income	1,707	-1,307	1,733	1,197	1,551
Cash flow	5,658	297	2,493	-1,945	3,143
Liquidity (1/2)	16,177	10,418	24,370	25,444	28,657
EPS (in EUR)	0.43	-0.33	0.44	0.30	0.39
Employees (3)	280	280	279	276	273

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans);

(2): Dividend of EUR 0.71 per share on 23.04.2012 (KEUR 2.823); Dividend of EUR 3.62 per share on 29.04.2013 (KEUR 14,395); (3): End of quarter / half-year

Investor Relations

Share price movement: Q1/2007 – Q2/2013

CONSOLIDATED OVERVIEW AS PER IFRS: QUARTERLY COMPARISON IN EUR

			2013		2012
	Q3/13	Q2/13	Q1/13	Q4/12	Q3/12
Highest price	29.15	34.10	36.30	21.25	22.04
Lowest price	24.09	24.05	20.76	19.00	19.11
Share price at end of quarter	25.30	24.84	33.80	20.75	21.00
Dividend paid per share (2)	0.00	3.62	0.00	0.00	0.00
Cash flow per share	1.42	0.07	0.63	-0.49	0.79
Liquidity per share (1/2)	4.07	2.62	6.13	6.40	7.21
EPS (undiluted)	0.43	-0.33	0.44	0.30	0.39
EPS (diluted)	0.43	-0.33	0.44	0.30	0.39

(1): Cash and cash equivalents, other current and non-current financial assets (sight deposits, gold) as of the qualifying date, adjusted to exclude borrowings (loans);

(2): Dividend of EUR 3.62 per share on 29.04.2013 (KEUR 14,395)

ATOSS – an attractive investment

Once again over the past twelve months, ATOSS shares have clearly outperformed the comparative DaxSubsector Performance Index. From the beginning of October 2012 until the end of the reporting period, the price of ATOSS stock climbed by around 19 percent, while the DaxSubsector Performance Index put on one percent. Taking into account the dividend payment of EUR 3.62 at the end of April 2013, the increase was almost 36 percent.

Viewed over the longer term, the difference is even clearer. From the beginning of 2007 until September 30, 2013, the ATOSS share price climbed 142 percent, whereas the DaxSubsector Performance Index in the same period put on 53 percent.

Shareholders in ATOSS Software AG have seen an increase in the value of their holdings in recent years, not just in terms of the share price alone. Dividend payments, too, have added to the attraction of the stock. In accordance with its dividend policy, ATOSS distributes around 50 percent of its earnings per share to shareholders. What's more, in the past there have always been special distributions from time to time, most recently in April 2013.

DIVIDEND AND SPECIAL DISTRIBUTION (EUR)

Earnings per share in the third quarter of 2013 amounted to EUR 0.43, bringing total EPS for the period from January to September 2013 to EUR 0.54. In the same period, liquidity and cash flow also developed along highly positive lines. Following the dividend payment of EUR 3.62 per share, a total disbursement in absolute terms of EUR 14.4 million, liquidity in the third quarter increased once again to EUR 16.2 million, equivalent to EUR 4.07 per share. As of September 30, 2013 the company's liquidity was composed of one third in gold and two thirds in sight deposits at banks.

The results achieved combined with accruals and deferrals essentially contingent on the qualifying dates as well as a reduction in receivables to boost cash flow substantially from EUR 5.3 million last year to over EUR 8.4 million as of September 30, 2013. Cash flow per share came in at EUR 1.42 (previous year: EUR 0.79).

The provisional quarterly figures published on 21 October 2013 slightly exceeded expectations, leading analysts at Warburg Research in turn to modestly increase their anticipated figures for sales and earnings. The analysts now expect to see a moderate development in the fourth quarter, and again lay stress on the company's sound balance sheet. They particularly welcomed the high level of liquidity and the reduction of investments in gold to around one third with the remainder in sight deposits. The upside target has been raised to EUR 26.20 (previous year: EUR 25.50), and the stock continues to be rated as a "hold".

Further information: www.atoss.com

Group Management Report

1. Business and conditions: The German economy powers up

The German economy in autumn 2013 is on the upturn: Following a decline in economic output in the second half of last year and a stagnant first quarter this year, the leading German economic research institutes in their Joint Economic Forecast for autumn 2013 now see the German economy heading clearly upwards. What's more, according to the economic researchers the upturn is being driven by domestic demand. Contributing factors include the gradual revival in the global economy in the first half of 2013, as well as the somewhat calmer situation in the eurozone and the concomitant reduction in uncertainty.

It is likely that the slightly faster pace of global economic expansion in the first half of 2013 will be maintained in the second half as well as in 2014. Growth of 2.1 percent in global output is expected for 2013, to be followed by an estimated 2.8 percent in 2014. This development is however contingent the crisis in the eurozone being gradually overcome and the debt ceiling being raised in the USA.

Gross domestic product in Germany should increase by 1.8 percent in 2014, following on from a rise of just 0.4 percent in the current year. This will be accompanied by an expected increase in investment activity resulting from the strong outlook for sales in the global markets, while borrowing conditions remain favorable. Consumer prices are likely to rise only slightly with increases penciled in of 1.6 percent in 2013 and 1.9 percent next year, with private consumption driven by an improving outlook for income and employment.

The high-tech sector, too, takes an optimistic view of the future, with industry association BITKOM predicting further momentum in 2014. Sales in the German ICT market in 2014 are expected to rise by 1.6 percent, while BITKOM in its market outlook for autumn 2013 is predicting current year growth of 4.9 percent in the software market (previous year: 4.4 percent). Software companies and IT service providers are also identified as the main drivers behind the positive trend in employment, given that sales growth in this segment translates directly into jobs in Germany.

Against this background, in the first nine months ATOSS recorded strong business with sales up 8 percent and a 10 percent increase in operating profits (EBIT) – despite high and sustained investments in marketing and development. In its core software business the company achieved sales growth of 9 percent. In addition the order intake has also developed satisfactorily. At EUR 5.1 million as of September 30, 2013, the figure was substantially higher than last year's EUR 4.8 million.

2. Earnings position: New record sales and results

In the first nine months of financial year 2013 ATOSS recorded sales revenues up 8 percent at EUR 26.5 million (previous year: EUR 24.5 million). In our core software business, sales climbed 9 percent from EUR 14.9 million to EUR 16.2 million, while sales of software licenses grew by 10 percent from EUR 5.1 to EUR 5.6 million. Software maintenance, too, continued to develop positively with turnover increasing by 9 percent EUR 10.7 million.

As of September 30, consulting sales stood at EUR 6.6 million (previous year: EUR 6.5 million).

Operating profits (EBIT) also increased strongly, rising by 10 percent from last year's already high level of EUR 5.9 million to EUR 6.5 million.

However earnings before taxes (EBT) in the reporting period slipped to EUR 2.9 million (previous year: EUR 6.8 million), due essentially to negative financial earnings of -EUR 3.6 million resulting from expenses and losses attributable to the fall in the price of gold.

Earnings after tax at the end of June 2013 amounted to EUR 2.1 (previous year: EUR 4.6 million). Earnings per share accordingly came in at EUR 0.54 (previous year: EUR 1.15).

Orders received as of September 30, 2013 amounted to EUR 5.1 million (previous year: EUR 4.8 million). Orders on hand for software licenses at the end of September stood at EUR 3.3 million, well above even last year's high level of EUR 3.0 million and providing an excellent starting point for the fourth quarter and coming financial year 2014.

3. Net assets and financial position

IIn the first nine months, cash flow from operations amounted to EUR 8.4 million (previous year: EUR 5.3 million). At the same time, liquidity (cash and cash equivalents less borrowings) declined relative to the same period last year from EUR 15.9 million to EUR 10.7 million. The position as a whole comprising liquidity and other current and non-current financial assets, after adjusting for borrowed funds such as loans, slipped from EUR 28.7 million to EUR 16.2 million. Liquidity per share on September 30 including these other current and non-current financial assets and adjusted for borrowings accordingly stood at EUR 4.07 (previous year: EUR 7.21).

The decline in liquidity relative to the year before was essentially due to the dividend payment in April 2013, which at EUR 14.4 million was some EUR 11.6 million higher than in 2012.

In addition to net earnings of EUR 2.1 million, the EUR 8.4 million in cash flow from operations as of September 30, 2013 was also boosted by an adjustment for the net effects – included within the net result in the amount of EUR 2.1 million but not attributable to operations - of the disposal and valuation of financial assets available for sale in the amount of EUR 3.3 million and an increase in deferred revenues of EUR 3.5 million. On the other hand, cash flow was correspondingly reduced by a fall of EUR 0.6 million in trade accounts payable.

As of September 30, 2013 ATOSS reported an equity ratio following the special distribution of EUR 2.90 per share of 48 percent (previous year: 66 percent). Consequently, the company remains extremely well capitalized, with solvency assured at all times.

4. Product development

A high level of expenditure on research & development remains an important component of the ATOSS growth strategy with the goal of further extending the company's strong position as a technological leader in workforce management. Research and development costs in the first nine months rose by 5 percent relative to the year before to stand at EUR 5.5 million as of the end of September (previous year: EUR 5.3 million). R&D costs as a proportion of overall sales amounted to 21 percent (previous year: 22 percent).

The company continues to refrain from capitalizing the expense of developing new products. All expenditure for this purpose is recognized in the income statement in the period in which it is incurred.

5. Employees

The number of employees has risen from 270 last year to 280. On September 30, 2013 ATO SS employed 128 developers (previous year: 118), with a further 71 staff employed in consulting (previous year: 72), 38 in sales and marketing (previous year: 38) and 43 in administration (previous year: 42).

Personnel costs for the current financial year amounted as of September 30 to EUR 12.5 million (previous year: EUR 12.0 million).

6. Risks associated with future development

There has been no material change in the company's risk structure relative to the description contained in the consolidated financial statements to December 31, 2012.

As a result of the sale of equities in March 2013 and the disposal of 161 of the gold bars held by the company, the market risk associated with financial assets available for sale, being the gold holdings, has reduced at fair value as of September 30, 2013 to EUR 5.4 million. The market risk associated with financial assets available for sale (gold) is dependent on the continuing movement in the gold price.

7. Events after the closing date

There have been no reportable events of particular significance since September 30, 2013.

8. Outlook

In the first nine months of the current financial year 2013 ATOSS has recorded strong development in sales and operating results. In view of this development and in consideration of the high level of orders on hand, despite further scheduled investments, particularly in developing new markets, and a continuing high level of expenditure on research & development amounting to around one fifth of sales, the Management Board continues to expect stable sales growth in the current financial year with an EBIT margin in excess of 20 percent.

CONSOLIDATED BALANCE SHEET TO 30.09.2013

Assets (EUR)	30.09.2013	31.12.2012
Non-current assets
Property, plant and equipment	2,720,864	2,764,873
Intangible Assets	140,817	141,602
Other financial assets	451,105	576,610
Deferred taxes	302,491	282,655
Total non-current assets	3,615,277	3,765,740
Current assets
Inventories	7,368	8,667
Trade account receivables	3,267,009	3,231,374
Other financial assets	4,996,669	16,008,437
Other non-financial assets	1,452,831	1,356,572
Cash and cash equivalents	10,729,036	8,859,080
Total current assets	20,452,912	29,464,130
Total assets	24,068,190	33,229,870

Equity and Liabilities (EUR)	30.09.2013	31.12.2012

Equity
Subscribed capital	3,976,568	3,976,568
Capital reserve	-661,338	-661,338
Equity deriving from unrealized profits/losses	34,651	-148,944
Unappropriated net income	8,260,075	20,522,139
Total equity	11,609,957	23,688,425
Non-current liabilities
Pension provisions	1,696,682	1,671,085
Deferred taxes	424,440	459,426
Total non-current liabilities	2,121,122	2,130,511
Current liabilities
Trade account payables	355,994	354,903
Other financial liabilities	4,015,620	4,597,789
Deferred revenues	5,764,832	2,281,999
Tax provisions	88,306	87,243
Other provisions	112,360	89,000
Total current liabilities	10,337,112	7,410,934
Total equity and liabilities	24,068,190	33,229,870

CONSOLIDATED INCOME STATEMENT FROM 01.01. TO 30.09.2013

EUR		9-Months Report
	01.07.2013 -	01.07.2012 -	01.01.2013 -	01.01.2012 -
	30.09.2013	30.09.2012	30.09.2013	30.09.2012
Sales revenues	8,949,328	8,242,119	26,480,120	24,515,413
Cost of sales	-2,746,970	-2,452,328	-7,568,636	-7,166,972
Gross profit on sales	6,202,358	5,789,791	18,911,484	17,348,441
Selling costs	-1,459,566	-1,436,638	-4,464,367	-4,021,667
Administration costs	-709,122	-696,086	-2,390,977	-2,096,108
Research and development costs	-1,794,400	-1,745,519	-5,549,808	-5,302,101
Other operating income	23,315	735	35,541	49,614
Other operating expenses	-32,669	-31,221	-55,877	-60,453
Operating profit (EBIT)	2,229,918	1,881,062	6,485,998	5,917,726
Interest and similar income	4,899	454,525	429,447	1,114,269
Interest and similar expenses	252,125	-52,633	-3,999,161	-276,149
Earnings before taxes (EBT)	2,486,942	2,282,954	2,916,284	6,755,846
Taxes on income and earnings	-779,681	-731,952	-783,172	-2,193,136
Net earnings	1,707,261	1,551,002	2,133,112	4,562,710
Earnings per share (undiluted)	0.43	0.39	0.54	1.15
Earnings per share (diluted)	0.43	0.39	0.54	1.15
Average number of shares in circulation (undiluted)	3,976,568	3,976,568	3,976,568	3,976,568
Average number of shares in circulation (diluted)	3,976,568	3,976,568	3,976,568	3,976,568

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FROM 01.01. TO 30.09.2013

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Net earnings	2,133,112	4,562,710
Components not reallocated in profit and loss
Profits/losses recognized in equity on the disposal of financial assets available for sale	503,533	0
Effects of taxes on income	-225,808	0
	277,725	0
Components reallocated in profit and loss
Profits/losses recognized in equity on the disposal of financial assets available for sale	-125,505	662,831
Effects of taxes on income	31,376	-162,370
	-94,129	500,461
Other income for the period after taxes	183,596	500,461
Comprehensive income after taxes	2,316,708	5,063,171

CONSOLIDATED CASH FLOW STATEMENT FROM 01.01. TO 30.09.2013

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Business operations
Net earnings	2,133,112	4,562,710
Depreciation of fixed assets	427,044	422,361
Gains/Losses from the disposal of fixed assets	1	370
Gains/Losses from the disposal/valuation of financial assets available for sale	3,336,493	-612,135
Other income financial investment assets	-20,409	-329,632
Changes in deferred taxes	-284,040	503,451
Change in pension provision	25,597	9,788
Adjustment for other items not recognized in profit or loss	34,785	-162,371

Change in net current assets Trade account receivables	-35,635	-2,629
Inventories and other assets	-94,960	-495,916
Trade account payables	1,091	-454,203
Other liabilities	-582,169	-631,495
Deferred revenues	3,482,833	3,448,681
Tax provisions	1,063	-958,610
Cash flow from business operations (1)	8,448,165	5,300,370

Investment activities
Expenditure for the purchase of tangible and intangible assets	-382,249	-276,864
Expenditure for the purchase of other financial assets	0	-5,778,148
Income from the disposal of other financial assets	8,161,456	4,220,078
Interest/dividend receipts	47,956	112,442
Interest paid	-10,195	-82
Cash flow from investment activities (2)	7,816,968	-1,722,574
Financing activities
Dividends paid	-14,395,176	-2,823,363
Income from current borrowings	3,000,000	0
Repayment of loans received	-3,000,000	0
Loans disbursed	-3,500,000	0
Repayment of loans granted	3,500,000	0
Cash flow from financing activities (3)	-14,395,176	-2,823,363
Changes in cash and cash equivalents – total of (1) to (3)	1,869,957	754,433
Cash and cash equivalents at the start of the period	8,859,080	15,117,296
Cash and cash equivalents and the end of the period	10,729,037	15,871,729

atoSS customer Radio Bremen

20 Q u a r ta l S B e r I C h t 01. 2013

EUR	Subscribed capital	Capital reserve	Treasury stock	Equity deriving from unrea lized profits/ losses	Unapp. ret. earnings	Total
Status 01.01.2012	4,025,667	-387,528	-322,909	205,237	17,585,809	21,106,276
Net income	0	0	0	0	4,562,710	4,562,710
Withdrawal of treasury shares	-49,099	-273,810	322,909	0	0	0
Dividends	0	0	0	0	-2,823,363	-2,823,363
Other changes in equity	0	0	0	500,461	0	500,461
Status 30.09.2012	3,976,568	-661,338	0	705,698	19,325,156	23,346,084
Status 01.01.2013	3,976,568	-661,338	0	-148,944	20,522,139	23,688,425
Net income	0	0	0	0	2,133,112	2,133,112
Dividends	0	0	0	0	-14,395,176	-14,395,176
Other changes in equity	0	0	0	183,596	0	183,596
Status 30.09.2013	3,976,568	-661,338	0	34,651	8,260,075	11,609,957

One share represents 1 euro of subscribed capital.

Notes to the consolidated financial statements

1. General

The present report has been prepared in accordance with International Financial Reporting Standards (IFRS) in compliance with IAS 1.14. In particular the report complies with the provisions contained in IAS 34 "Interim Financial Reporting". The requirements contained in German Accounting Standard (DR S) No. 6 regarding interim reporting have likewise been fulfilled.

In accordance with IAS 34.20, the present statements include a consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated cash flow statement, a consolidated statement of changes in equity and explanatory notes to the consolidated statements.

The same financial accounting, valuation and computation methods have been applied as in the case of the annual financial statements to December 31, 2012. The revised IAS 19, which requires unexpected fluctuations in pension benefit liabilities and assets - so-called actuarial profits and losses – to be recognized immediately in other comprehensive income, plan amendments to be recognized in profit and loss in full in the relevant period and expected interest on plan assets to be recognized at the discount interest rate only, will be applied by the Group at the financial year end, backdated to January 1, 2013.

The Management Board is satisfied that the impression of the economic situation of the company, its net assets, financial position, earnings situation and cash flow conveyed by the present quarterly financial statements accords with the true facts. This interim report has not been subject to an auditors' review or audit.

2. Reporting period

The present interim report was prepared to September 30, 2013 for the reporting period from January 1, 2013 to that date.

3. Currency

All figures are stated in euro. Amounts are rounded up to whole euro units.

4. Consolidated group

In addition to the parent company ATOSS Software AG, Munich, the consolidated financial statements to September 30, 2013 also include all subsidiary companies:

ATO SS CSD Software GmbH, Cham, Germany ATO SS Software Ges.mbH, Vienna, Austria ATO SS Software AG, Zurich, Switzerland ATO SS Software S.R.L., Timisoara, Romania

These companies are fully consolidated.

5. Changes in equity

The development in equity is evident from the consolidated statement of changes in equity.

6. Sales revenues

The company's sales revenues in the financial year were composed as follows:

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Software licenses	5,573,076	5,056,281
Software maintenance	10,655,807	9,794,628
Total software	16,228,883	14,850,909
Consulting	6,586,994	6,533,762
Hardware	2,587,941	2,062,875
Others	1,076,302	1,067,867
Total sales revenues	26,480,120	24,515,413

The geographic breakdown of sales revenues was as follows:

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Germany	24,311,489	22,207,059
Austria	1,561,146	1,165,567
Switzerland	429,890	565,711
German-speaking territories in total	26,302,525	23,938,337
Other countries	177,595	577,076
Total sales revenues	26,480,120	24,515,413

7. Personnel expenses

The consolidated personnel costs to September 30, 2013 were composed as follows:

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Wages and salaries	10,376,380	9,954,610
Social security contributions and expenditure on retirement pensions and welfare	2,146,264	2,072,577
Total personnel costs	12,522,644	12,027,187

8. Other operating income and expenses

In the first nine months of the current financial year the company recorded other operating income in the amount of EUR 35,541 (previous year: EUR 49,614). This income essentially resulted from the release of reserves.

The other operating expenses amounting to EUR 55,877 (previous year: EUR 60,453) essentially related to exchange rate losses.

9. Financial investment income and expenses

In the first nine months of the current financial year the company recorded income in the amount of EUR 429,447 (previous year: EUR 1,114,269) from financial investments. This essentially comprised income from the sale of financial assets in the amount of EUR 381,491 (previous year: EUR 477,372), interest income in the amount of EUR 25,704 (previous year: EUR 112,442) and dividends received in the amount of EUR 17,354 (previous year: EUR 134,763).

The company also recorded expenses amounting to EUR 3,999,161 as of September 30, 2013 (previous year: EUR 276,149). These expenses essentially comprised valuation and sale losses on the company's gold holdings in the amount of EUR 3,678,960 (previous year: EUR 0), the writedown on put options in the amount of EUR 168,253 (previous year: EUR 0), interest expenditure in connection with pension provisions in the amount of EUR 85,377 (previous year: EUR 103,729), losses on the disposal of financial assets in the amount of EUR 56,377 (previous year: EUR 0) and interest on current financial liabilities in the amount of EUR 10,193 (previous year: EUR 0).

10. Tax charge

Consolidated tax expenses to September 30, 2013 were comprised as follows:

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Pre-tax earnings (EBT)	2,916,284	6,755,846
Expected tax charge (2013: 32.60%, 2012: 32.60%)	-950,709	-2,202,406
Non-deductible operating expenses	-17,741	-9,907
Interests as per § 8b KStG	105,438	-56,209
Differences in tax rates at consolidated companies	79,839	75,386
Actual Group tax charge	-783,172	-2,193,136

The company anticipates that the diminution in value of its gold holdings will be permanent and has taken this into account accordingly in calculating its tax position at the end of the first half-year.

The current tax expense in the amount of EUR 229,217 formed as of December 31, 2012 in association with the impairment of the gold holdings recognized in equity has been released to income as of June 30, 2013.

11. Earnings per share

The figure for earnings per share is arrived at by dividing the net result for the period in the amount of EUR 2,133,112 by the weighted average number of shares outstanding. From January 1 to September 30, 2013 there were an average of 3,976,568 shares in circulation. Thus earnings per share for this period amounted to EUR 0.54, in comparison with EUR 1.15 in the first nine months of last year.

12. Segment reporting

The identification of operating segments presupposes that a senior decision-maker monitors and assesses the profitability of significant components of the company as the basis for resource allocation and profitability measurement, that the components of the company generate income and incur expenses as part of their business activities, and that financial information is available for these components of the company. Several segments can be aggregated into one segment if the type of products and services, production processes and customers for which the products and services are intended are similar, as well as the sales methods applied, and where they exhibit a significant shortfall relative to the quantitative thresholds for segment formation.

The company has only one uniform business segment within the meaning of IFRS 8 which comprises the creation, sale and implementation of software solutions directed towards the efficient deployment of personnel.

The following tables depict sales revenues broken down by software solutions and their contributions to the operating result.

The individual software solutions comprise:

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE):

ASES and ASE are time and attendance management and workforce scheduling solutions for customers of all sizes in all industries. These software solutions are generally accompanied by other services covering implementation and training. In addition consulting services are rendered with the object of making meaningful use of the available scope and developing optimum solutions for the efficient deployment of personnel under specific operating conditions and in consideration of works agreements and industry-wide pay deals. The company also sells hardware components for time recording and access control purposes. ASES/ASE software is used in conjunction with all major standard system platforms and databases. Moreover thanks to the extensive facility to define customer-specific parameters these solutions are capable of satisfying even the most sophisticated requirements of customers of all sizes in all industries.

ATOSS Time Control (ATC):

AT C offers a software solution for time and attendance time management and workforce scheduling for small and medium-sized customers, as well as large but decentrally organized clients. Likewise in conjunction with ATC, ATOSS offers software implementation and training as well as consulting services. Merchandise including hardware and recording media is also available. ATC software is installed on the Microsoft Windows system platform in association with standard SQL databases and is particularly user-friendly and convenient for small to medium-sized customers as well as large decentralized organizations.

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Sales revenues
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	23,731,723	22,567,748
ATOSS Time Control (ATC)	2,748,397	1,947,665
Total sales revenues	26,480,120	24,515,413
Operating result (EBIT)
ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE)	5,719,173	5,609,819
ATOSS Time Control (ATC)	766,825	307,907
Operating result (EBIT) in total	6,485,998	5,917,726

13. Employees

On September 30, 2013 the company had 280 employees (previous year: 270).

EUR	01.01.2013 - 30.09.2013	01.01.2012 - 30.09.2012
Development	128	118
Consulting	71	72
Sales and marketing	38	38
Administration	43	42
Total	280	270

14. Management Board

The members of the Management Board are:

Andreas F.J. Obereder	Chairman and Chief Executive Officer
Christof Leiber	Member of the Management Board

15. Supervisory Board

The Supervisory Board was elected at the annual general meeting on April 26, 2013 and is now comprised as follows:

Peter Kirn	Chairman
Rolf Baron Vielhauer von Hohenhau	Deputy Chairman
Klaus Bauer	Member of the Supervisory Board

16. Board member shareholdings

As of September 30, 2013 the following board members held the following numbers of ATOSS shares:

	30.09.2013	30.06.2013	31.03.2013	31.12.2012	30.09.2012
Andreas F.J. Obereder	1,988,285	1,988,285	1,988,285	1,988,285	1,988,285
Peter Kirn	14,760	14,760	14,760	14,760	14,760

The majority shareholder, Andreas F.J. Obereder of Grünwald, Germany, holds 1,988,285 shares representing 50.0000025 percent of the shares in ATOSS Software. His shares are held via the company AOB Invest GmbH of Grünwald, Germany, which is wholly owned by him.

17. Notifiable participating interests

In the first ten months of financial year 2013 the company received the following notifications regarding changes in participating interests pursuant to Sections 21 ff. of the German Securities Trading Act:

On February 28, 2013 ATOSS Software AG was informed by Investmentaktiengesellschaft für langfristige Investoren TGV of Bonn, Germany, pursuant to § 21 Para. 1 of the German Securities Trading Act that on February 27, 2013 its voting share in ATOSS Software AG of Munich, Germany had fallen below 5 percent of the voting rights and on that day amounted to 4.96 percent (equivalent to 197,250 voting rights).

On October 28, 2013 ATOSS Software AG was informed by Investmentaktiengesellschaft für langfristige Investoren TGV of Bonn, Germany, that on October 22, 2013 its voting share in ATO SS Software AG of Munich, Germany, had exceeded 5 percent of the voting rights and on that day amounted to 5,004 percent (equivalent to 198,998 voting rights).

There have been no further notifications pursuant to §§ 21ff of the German Securities Trading Act regarding changes in participating interests.

18. Business transactions with closely related persons

In accordance with a resolution adopted by the Supervisory Board at its meeting on March 5, 2013, the company granted a loan in the amount of EUR 3.5 million to the controlling shareholder AOB Invest GmbH of Grünwald. The loan was granted on standard market terms and subject to standard security. The loan was repaid on April 30, 2013.

The wife of the Chief Executive Officer provides services to the company. In the first nine months of the financial year 2013 the value of these services amounted to EUR 1,872 (previous year: EUR 4,056). The company is satisfied that the terms agreed for these transactions are standard market terms.

19. Events after the closing date

There have been no reportable events of particular significance since September 30, 2013.

Declaration by the Legal Representatives

According to the best of our knowledge, we assure that, pursuant to the applicable accounting principles for interim reporting, the interim consolidated financial statements convey a true and fair view of the Group's net assets, financial position and results of operations, and that the business development, including the business results and the Group's position, are presented in the interim Group management reports in such a way that they convey a true and fair view, and that the key opportunities and risks pertaining to the Group's prospective development in the remainder of the fiscal year are described.

Munich, November 15, 2013

Andreas F.J. Obereder Christof Leiber Chairman of the Management Board/CEO Member of the Management Board

Disclaimer

This report contains forward-looking statements that are based on the conviction of the Management Board of ATOSS Software AG and reflect current assumptions and estimations. These forward-looking statements are subject to risks and uncertainties. Many facts that cannot currently be predicted may cause the actual performance and earnings of ATOSS Software AG to develop in a different manner. This could for example include the nonacceptance of newly introduced products or services, changes in the general economic and business climate, a failure to achieve efficiency and cost-reduction targets or changes in business strategy.

The Management Board is firmly convinced that the expectations embodied in these forwardlooking statements are sound and realistic. Should however the above-mentioned or other unforeseeable risks materialize, ATOSS Software AG cannot guarantee that the expressed expectations will prove to be correct.

Financial calendar

31.01.2014 Press release announcing preliminary results for 2013

12.03.2014 Publication of the annual report for 2013

12.03.2014 Balance sheet press conference

17.04.2014 Press release announcing three months' statement

30.04.2014 Annual General Meeting

13.05.2014 Publication three months' statement

22.07.2014 Press release announcing six months' statement

12.08.2014 Publication six months' statement

21.10.2014 Press release announcing nine months' statement

14.11.2014 Publication nine months' statement

Impressum

RESPO NSIBILITY LIES WITH

ATOSS Software AG Am Moosfeld 3 D-81829 Munich T +49 89 4 27 71-0 F +49 89 4 27 71-100 www.atoss.com [email protected]

INVE STOR RELAT IONS

ATOSS Software AG Investor Relations Christof Leiber T +49 89 4 27 71 0 F +49 89 4 27 71 100 [email protected]

OTHER OFFICES

Düsseldorf

Robert-Bosch-Straße 14 40668 Meerbusch Germany T +49 21 50 9 65 0

Frankfurt

Campus Carré Herriotstraße 8 60528 Frankfurt/Main Germany T +49 69 13 82 43 0

Hamburg

Osterbekstraße 90b 22083 Hamburg Germany T +49 40 27 81 63 0

Stuttgart

Zettachring 10a 70567 Stuttgart Germany T +49 7 11 7 28 73 200

SUBSIDIAR IES

Deutschland ATOSS CSD Software GmbH Rodinger Straße 19 93413 Cham Germany T +49 99 71 85 18 0

Österreich

ATOSS Software Ges. mbH Europaplatz 2/1/2 1150 Vienna Austria T +43 1 7 17 28 334

Schweiz

ATOSS Software AG Leutschenbachstraße 95 8050 Zurich Switzerland T +41 44 3 08 39 56

Rumänien

SC ATOSS Software SRL Str. Diaconu Coresi, Nr. 31 300588 Timisoara Romania T +40 356 71 01 82

atoss.com