CENIT AG

Earnings Release • May 11, 2006

News Details

Ad-hoc | 11 May 2006 07:58

CENIT AG Systemhaus:CENIT achieves sales growth and increased earnings in Quarter 1 2006

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— CENIT achieves sales growth and increased earnings in Quarter 1 2006 Broad growth in the consulting and software segments 19% sales growth to €19.18 million Operating results climbs from €1.60 million to €2.61 million Pleasing development in new customers and orders received Stuttgart, 11 May 2006 – The 2006 financial year began well once again for CENIT (ISIN:DE0005407100). The first quarter was characterised by strong sales and earnings growth, which was driven by our software solutions, consulting services and the marketing of CENIT software via the sales channel of our partner FileNet. Both foreign subsidiaries are on track to meet expectations and considerably improve their contribution to the CENIT Group. Development of orders and sales is particularly pleasing in Switzerland. Group sales were up by 19% to €19.18 million (2005: €16.11 million). Gross income in the Group reached €14.80 million (2005: €12.17 million/ 22%). EBITDA increased by around 63% in the Group to €2.88 million (2005: €1.77 million). Group EBIT was up by €1 million to €2.61 million (2005: €1.60 million/ 63%). Group EBT totalled €2.44 million (2005: €1.68 million/ 45%) and consolidated earnings amounted to €1.97 million (2005: €1.07 million/84%). Basic earnings per share (EPS) were €0.47 (2005: €0.26/81%). Operating cash flow totalled €2.18 million in the Group (2005: €1.14 million/91%). The consolidated balance sheet total was €37.44 million (31.12.2005: €33.91 million). The equity ratio remained unchanged at 58%. Equity amounted to €21.62 million at the end of the reporting period (31.12.2005: €19.57 million). Cash and cash equivalents, including securities, totalled €22.10 million as at the reporting date (31.12.2005: €20.81 million). Orders received by the Group were up by 8% to €31.2 million (2005: €29.0 million). Notes on accounting methods according to IFRS With effect from the start of this year, income from services is carried using the POC (percentage of completion) method for the first time, based on the extent to which they have been completed in accordance with IAS 18.22 ff. This concerns the periodic consideration of expenses and income during the completion time of the service project. The comparative figures from the first quarter of 2005 using the POC method would thus be as follows: sales €16.03 million; EBITDA €1.70 million; EBIT €1.52 million; EBT €1.60 million; EPS €0.24. Outlook The Executive Board of CENIT is optimistic that the company will continue to generate growth in the medium-term by focussing on the consulting and software segments for product lifecycle management, enterprise content management and application management and through the international marketing of CENIT software. This optimistic outlook will be accompanied by a corresponding staff expansion, which currently includes plans for 60 vacancies, primarily in the consulting segment. If you have any enquiries, please contact: CENIT AG Systemhaus ISIN:DE0005407100 Fabian Rau Investor Relations Industriestrasse 52-54 /D-70565 Stuttgart Tel.: (+49) 7 11 / 78 25-3185 Fax: (+49) 7 11 / 78 25-4185 E-mail: f.rau@cenit.de Information about CENIT: CENIT AG Systemhaus is an internationally operating consulting company which employs more than 530 people. Focusing Product Lifecycle Management Consulting, Outsourcing and Enterprise Content Management solutions, the company is listed in Germany’s Prime Standard. Customers are Allianz, BMW, DaimlerChrysler, EADS, Airbus, AXA, Metro ,VW and many small and medium-sized enterprise. http://www.cenit-group.com Forward-Looking Statements This news release may contain forward-looking statements about the business, financial condition, results of operations and earnings outlook of CENIT Words such as ‘may,”will,’ ‘expect,’ ‘anticipate,’ ‘contemplate,’ ‘intend,’ ‘plans,’ ‘believe,”continue’ and ‘estimate,’ and variations of these words and similar expressions, identify these forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which CENIT expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks Contact: Fabian Rau Direktor Investor Relations f.rau@cenit.de Telefon: 0711 – 78 25 3185 Fax: 0711 – 78 25 4185 (c)DGAP 11.05.2006 —————————————————————————