GK Software SE — Earnings Release 2008

Jul 31, 2008

News Details

Ad-hoc | 31 July 2008 12:47

GK SOFTWARE AG enjoys double-digit growth according to preliminary figures

GK Software AG / Preliminary Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

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• Revenues in H1 2008 up 45.5% to EUR 7.69 million
• EBIT lifts 86.9% to EUR 1.57 million

Schöneck, July 31, 2008 – GK SOFTWARE AG, a European technology leader in
the development and provision of standard software solutions for the retail
industry, announced its preliminary figures for the first half of 2008
today. The software company recorded revenues (IFRS) of EUR 7.69 million,
up more than 40% compared to H1 2007 (EUR 5.28 million). EBIT also
increased by 86.9% from EUR 0.84 million in H1 2007 to EUR 1.57 million. At
the same time, GK SOFTWARE AG improved its EBIT margin on total operating
revenue from 16.2% to 22.2%.

The significant improvement in revenues and earnings in the current fiscal
year was due to the company's broader client base, which led to number of
new projects. In addition, the existing client relationships have been
intensified and expanded. As a result, GK SOFTWARE AG has been able to
acquire follow-on orders for key projects already concluded. After
successfully processing, the company concluded many of these orders so that
they were reflected in income in the period under review. For example, the
rollout for 'Das Depot', a new client won in 2007, could be completed.
Moreover, the company could largely complete the rollout of the initial
project for 'Galeria Kaufhof'. Concerning the existing clients 'Tchibo'
and 'Douglas', extensions of the already introduced solutions were
established. GK SOFTWARE AG also succeeded in acquiring key new customers
in 2008, including 'Coop', Switzerland, and 'Escada', thus further boosting
the company's revenue and earnings potential.

In fiscal year 2007 as a whole, the company recorded total revenues of EUR
10.75 million and EBIT of EUR 2.33 million, with an EBIT margin on total
operating revenue of 20.0%.

Additional information

ISIN: DE0007571424
German Securities Code Number (WKN): 757142
Stock exchange symbol: GKS
Regulated market/Prime Standard on the Frankfurt Stock Exchange

GK SOFTWARE AG
Waldstraße 7
08261 Schöneck
Germany

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Information and Explaination of the Issuer to this News:

Company Profile

GK SOFTWARE AG is a European technology leader in the development and
provision of standard software solutions for the retail industry. It
supplies an end-to-end range of products for retail stores and company
headquarters. The open and platform-independent software solutions of the
GK/Retail Suite, which are fully programmed in JAVA, have allowed the
company to establish itself on the market as a technology and innovation
leader. The software allows retail chains to optimize their company's
organization and to create significant potential for cost savings as well
as to realize customer loyalty potential in order to increase
competitiveness. The key features of the solutions are: international
applicability, consistent use of open standards and SOA (Service Oriented
Architecture) capability. As GK/Retail is genuine standard software,
parameters can be used to make the necessary adjustments to meet most
customer requirements. This reduces the programming effort and allows rapid
project completion. At the same time, solutions for customers remain
releasable and new functions can be introduced by a release change. A key
component of the modular software is also the StoreWeaver integration
platform, which connects all the subsystems in a retail store and also
provides a powerful interface for enterprise systems such as ERP or CRM
solutions.

The company currently employs 166 employees (as of April 30, 2008) at its
headquarters in Schöneck and at three other business locations: Berlin,
Pilsen in the Czech Republic and Basel/Riehen in Switzerland. GK SOFTWARE
AG can list well-known German retail stores among its customers which
include, for example, Galeria Kaufhof, Parfümerie Douglas, EDEKA
Hannover-Minden, Lidl, Netto Markendiscount and Tchibo, as well as its
first international customer Coop, headquartered in Switzerland. The
company’s software solutions are being used in approximately 12,000 retail
stores in over 50,000 installations in currently 22 countries worldwide.
The company has grown quickly over the past few years and its revenues
reached EUR 10.75 million in 2007. The company’s EBIT amounted to EUR 2.33
million (EBIT margin on total operating revenue of 20.0%). Since 1990, the
two founders and Executive Board members, Rainer Gläß (CEO) and Stephan
Kronmüller (CTO), together with the Executive Board members Ronald Scholz
(COO) and André Hergert (CFO) have grown GK SOFTWARE AG to become a
fast-growing, profitable company.

For further information visit the company’s website www.gk-software.de.

Media contact

Dr. René Schiller
Leiter Unternehmenskommunikation

GK SOFTWARE AG
Friedrichstr. 204
10117 Berlin

Phone. : +49 (0)37464-84264
Mobile: +49 (0)173-9513776
Fax: +49 (0)37464-8415
E-Mail: rschiller@gk-software.com

Investor relations contact

cometis AG
Ulrich Wiehle
Phone: +49 (0)611-205855-11
Fax: +49 (0)611-205855-66
E-mail: wiehle@cometis.de

31.07.2008 Financial News transmitted by DGAP

Language: English
Issuer: GK Software AG
Waldstr. 7
08261 Schöneck
Deutschland
Phone: 037464 - 840
Fax: 037464 - 8415
E-mail: investor-relations@gk-software.com
Internet: www.gk-software.com
ISIN: DE0007571424
WKN: 757142
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Stuttgart

End of News DGAP News-Service

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