Beta Systems Software AG

Earnings Release • Aug 19, 1999

News Details

Ad-hoc | 19 August 1999 07:50

Ad hoc-Service: BETA Systems Software AG Q2_e

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— BETA Systems announces results for the Second Quarter Ended June 30, 1999 * Revenue increased 32.6% to DM 23.5 million in Q2 1999 compared to Q2 1998 * Pre-tax profit up 54% to DM 0.8 million; Net income up 72% to DM 0.4 million * Cost control measures show initial signs of success Berlin, August 19, 1999: BETA Systems Software, Berlin (Neuer Markt:BSS), a leading developer of innovative systems management software products, announced results for the second quarter ended June 30, 1999. Revenues and net income levels for the second quarter of 1999 were a record for the Company. This achievement was particularly gratifying considering that we had a very strong second quarter in 1998 against which to compare and that our results of operations continue to be adversely affected by costs and expenses related to the December 1998 acquisition of HARBOR Systems Management Ltd (“HARBOR”). BETA Systems second quarter revenues grew by DM 5.8 million, or 32.6%, over the same period of 1998. Our pre-tax income was DM 0.8 million as compared to income before taxes of DM 0.5 million in the second quarter of 1998. Net income in the 1999 period was DM 0.4 million, or DM 0.11 per share, as compared to DM 0.2 million, or DM 0.07 per share, in the 1998 period. Current period results were negatively affected by a one-time charge of DM 0.8 million related to a severance payment to a former management board member. Adjusted for this non-recurring item, pre-tax income for the period would have increased by DM 1.0 million (215%) to DM 1.5 million, net income by DM 0.6 million (251%) to DM 0.8 million and earnings per share by DM 0.15 to DM 0.22 per share. For the first half year 1999, the Company’s revenues totaled DM 39.9 million, an increase of DM 9.0 million (29%) over revenues of DM 30.9 million in the comparable period of the prior year. The Company’s loss before income taxes was DM (4.3) million, an increase of DM (1.5) million as compared to DM (2.8) million in the 1998 first half year. BETA Systems net loss for the first half year 1999 was DM (2.3) million, or DM (0.63) per share, as compared to DM (1.4) million, or DM (0.39) per share in the comparable 1998 period. First half results were negatively affected by the inclusion of HARBOR, in particular costs associated with the addition of its 60 employees and increased non cash charges related to the acquisition such as amortization of software costs and goodwill aggregating DM 4.0 million. Such expenses are in accordance with our expectations and in no way diminish our enthusiasm for the exciting potential which HARBOR’s enterprise storage products bring to BETA Systems’ product portfolio. Christiane Hotz-Firlus, Speaker of the Management Board, commented: “The results of the second quarter 1999 slightly exceeded our expectations and reflect initial success in strategically repositioning the Company and in implementing cost control measures to increase profitability. The results of the second quarter and first half year 1999 make us optimistic about realizing expectations for revenue growth of approximately 25% and pre-tax profit of 5-7% of total revenue for the full year.” For the quarterly report, please call investor relations at ++49 30 399 26 158 or visit our website: www.betasystems.com Company Contact Matthias Poth Manager Investor Relations BETA Systems Software AG Alt Moabit 97a, 10559 Berlin Telefon: ++49 30 399 26-180 Fax: ++49 30 399 26-289 Internet:www.betasystems.com Ende der Mitteilung