CPU Softwarehouse — Earnings Release 1999

Nov 30, 1999

News Details

Ad-hoc | 30 November 1999 07:48

Ad hoc-Service: CPU Softwarehouse AG

Ad-hoc announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— CPU Softwarehouse AG Ad hoc Report Augsburg, 30.11.1999 Figures for the first nine months of 1999 CPU Softwarehouse AG announced the results for the third quarter today (as of 30.09.1999) – strong turnover growth – exceptional burden on operating result – development of international business. Strong turnover growth In comparison to the first nine months of 1998 (individual company statement CPU Softwarehouse ), CPU Softwarehouse AG increased turnover by around 300% to 14,07 million DM. In comparison to the “As if” – consolidated group statement of the same period, last year, CPU AG achieved a 50% increase in turnover. Exceptional burden on operating result The consolidated group statement for the past nine months was -3,6 million DM (after tax) (same quarter last year, individual company statement -1,0 million DM, “As if” -consolidated group statement -1,5 million DM). The resulting performance per share (based on 6,8 mill. shares) was -0,53 DM. The EBIT as of 30.9.99, for the first nine months of 1999, was -12,3 million DM. The business acquisitions which were announced at the stock market floatation but which were, at that time, not included in the target figures, led to an exceptional burden on the operating result: * Through the acquisition activities, added expenses were taken into account for more due diligence ( to the sum of around 1,0 mill. DM) (as of 30.9.99). * The integration of KSB/c – carried out after the take-over of T&R – and of the Telesoft products – into the standard software CPU-C5, resulted in considerable added expense. * The increase in staff numbers from 52 (same period last year) to 139 (as of 30.9.99). * Greater expenses from third party programmer services. * The goodwill amortisation amounted to 1,82 mill. DM (as of 30.9.99). Development of international business The third quarter 1999 is marked by the consistent realisation of the growth strategy for Eastern Europe, announced at the stock market flotation, by co-operations and business acquisitions or investments. Outlook Since the first week of November and, in particular, since the middle of November 1999, the CPU Softwarehouse AG Board has learnt about decision- making delays for significant orders, delays which stretch beyond the individual quarters into the year 2000. These delays are mainly as a result of the “Frozen Zone” . Through the acquisitions made, CPU Softwarehouse AG has significantly strengthened its competence in the promising markets of corporate customer business, e-commerce, e-payment, content, advice and much more. After completion of the integration work; a forecasted competitive edge, resulting from this and the dissolution of the decision-making congestion at financial service companies (Frozen Zone), the start of which is anticipated for the second quarter 2000, the CPU Board expects a significant increase in business dealings for CPU Softwarehouse AG. The complete and comprehensive nine month report is available for download as a PDF file, from the Deutsche Börse AG (German Stock Exchange) and CPU Softwarehouse AG. Compiled by: Kay Schleef Director of Strategic Marketing, M&A Further information can be found under www.cpu-ag.com End of Message