HANSEN TECHNOLOGIES LIMITED — Regulatory Filings 2003

Mar 12, 2003

ASX RELEASE

13 March 2003

Hansen Technologies Interim Result Six Months to 31 December 2002

Hansen Technologies Limited (Hansen), the billing systems and IT services group, today announced earnings before interest, tax, depreciation and amortisation (EBITDA) of \$1.5 million for the six months to 31 December 2002.

Honseen Technologies, Linderi AT3N 9D DRD 996 455

2 Frederick St P.O. Box 6127 Doncaster 3108 Victorie Australia Telephone + 61 3 9840 3000 Pacsimile + 61 3 9840 3099

info@hshtech.com

			www.hantech.com
Results for	6 months to 31 Dec 2002 $$$ million $)$	6 months to 30 June 2002 (\$million)	6 months to 31 Dec 2001 (\$million)
			refer note (2)
Sales revenue	30.4	23.1	22.1
EBITDA (1)	1.5	0.0	2.4
Depreciation and amortisation	(3.3)	(2.3)	(2.0)
EBITA $(1)$	(1.8)	(2.3)	0.4
Goodwill amortisation	(0.6)	(2.0)	(2.0)
EBIT $(1)$	(2.3)	(4.3)	(1.6)
Net interest income/(expense)	(0.1)	0.0	(0.1)
Profit before $\text{tax}^{(1)}$	(2.4)	(4.3)	(1.6)
$Write-down(1)$	0.0	(55.0)	0.0
Tax credit/(expense)	(0.1)	0.7	(0.3)
Net profit	(2.5)	(58.6)	(1.9)
Dividend (cents-fully franked)
Interim			1.0
Final

Notes:

• (1) for the six month period ending 30 June 2002, these profit figures are presented pre write-down of \$55.0m, which related to a reduction in the carrying value of goodwill (\$52.8m) and write-downs relating to SVi Group assets (\$2.2m).
• (2) the figures for the period ending 31 December 2001 have been restated to account for the inaccuracies in Hansen North America's revenue and earnings, as previously announced to the market on 4 September 2002 and subsequently clarified in the June 2002 Annual Report and Appendix 4B.
• (3) Amounts may not calculate due to rounding.

News Release Hansen Technologies results for the 8 months to 31 December 2002.

The EBITDA result, while lower than the previous corresponding period ending 31 December 2001, was an improvement on the break even result achieved for the six months ending 30 June 2002.

Sales revenue of \$30.4 million for the period is in line with the run rate outlined at the Annual General Meeting, recording an increase of 31% and 38%⁽²⁾ over the June 2002 and December 2002 six month periods respectively.

The company reported a net loss of \$2.5 million for the six months to 31 December 2002, compared with net losses of \$58.6 million and \$1.9 million⁽²⁾ for the June 2002 and December 2002 six month periods respectively. The Directors have not declared an interim dividend.

The results for the half benefited from the six month consolidation of Syntegra for the first time, which contributed \$11.4 million in sales. This business unit, since renamed Hansen Professional Services, has performed well and the integration of it with Hansen's Melbourne based IT outsourcing operation is well advanced.

Each of the companies in the SVi Group is now in liquidation. The SVi Group traded for two months during the half year before being placed into liquidation. The result for the six months to 31 December 2002 include trading losses of \$0.4 million attributable to the SVi Group. Also included in this result are expenses and provisions for the costs of the liquidation of \$0.3 million, and a net write back of SVi Group liabilities upon its liquidation of \$0.7 million.

Continuing the commitment to improve the performance of the company, further restructuring initiatives were undertaken during the half year. As a result, \$0.9 million of costs expensed during the six months to 31 December 2002 will not be incurred in the current period (excluding the impact of the SVi Group). This amount excludes restructuring costs of \$0.5 million, which were also expensed during the half year.

While this half year result is an improvement over that which was achieved in the second half of FY2002, recent acquisitions have required significant cash outlays, which in turn has reduced the working capital available to the company. In recognition of this the Directors have resolved to undertake a non renounceable rights issue. The Chairman and Managing Director, who together control approximately 62% of the issued capital, have both committed to take up their full entitlement under the issue, and as a result the issue will raise a minimum of \$3 million (see separate announcement for details).

(2) the figures for the period ending 31 December 2001 have been restated to account for the inaccuracies in Hansen North America's revenue and earnings, as previously announced to the market on 4 September 2002 and subsequently clarified in the June 2002 Annual Report and Appendix 4B.

COMMENTARY

Billing Systems Software and Services

Hansen's core billing systems business achieved sales of \$15.8 million $(2001: $16.5 \text{ million}^{(2)})$ , accounting for 52% of revenue for the half year, with a seament result before overhead allocation of \$3.6 million (2001; \$4.6 million⁽²⁾). This included revenue from Hansen North America of \$3.1 million for the six month period (2001: $$3.0$ million⁽²⁾).

During the six months to 31 December 2002 sales of \$3.4 million were derived from customers utilising legacy gas systems. This represents the tail end of the revenue stream from these legacy systems, acquired as a part of the purchase of Energy Information Solutions (EIS) in 1999. While no further significant revenue is expected from the legacy gas systems in the current or future periods, the acquisition of EIS has provided the industry expertise that enabled Hansen to develop the gas module of the proprietary Hub billing system.

Notwithstanding the success in securing contracts with the Marshall Islands National Telecommunications Authority, trading conditions continued to be difficult in the telecommunications industry both locally and internationally.

The domestic energy sector has proved to be more buoyant. The division achieved success with the award of the TXU CDM contract during the half, and more recently with the Australian Inland energy and water project announced in March. Further positive announcements are anticipated in the current half.

IT Outsourcing Services

The IT outsourcing division reported sales of \$13.7 million (2001: \$3.1 million) and a segment result of \$1.7 million (2001: \$1.5 million) for the six months to 31 December 2002.

The division's result included a six month revenue contribution from Hansen Professional Services (formerly Syntegra) of \$11.4 million, following its acquisition in June 2002. This business unit's one month revenue contribution in the last half of FY2002 was \$1.6 million. The IT outsourcing division now represents 45% of the group's sales, compared with 14% in the previous corresponding period. The integration of this business with Hansen's existing operations in Melbourne is well progressed, with significant cost savings achieved

The acquisition of Hansen Professional Services has transformed this division. establishing Hansen in the middle tier of the facilities management market. It has given Hansen a second data centre in North Ryde, NSW, and has added

(2) the figures for the period ending 31 December 2001 have been restated to account for the inaccuracies in Hansen North America's revenue and earnings, as previously announced to the market on 4 September 2002 and subsequently clarified in the June 2002 Annual Report and Appendix 4B.

News Release Hansen Technologies results for the 8 months to 31 December 2002.

financial services industry specialisation to Hansen's telecommunications and utilities vertical markets. Importantly, Hansen Professional Services will provide a platform for the company's HubFM service (Hansen's outsourced billing service) in the NSW market.

Other Activities

Hansen's other activities recorded revenue of \$1.1 million (2001: \$2.5 million). and a segment loss before overhead allocation of \$0.8 million (2001; \$0.1 million profit).

These other activities for the year to 31 December 2002 included:

• W. workforce management software and services - encompassing call centre productivity software (ResourcePro), and an outsourced payroll and human resource management service: and
• uu. infrastructure and asset management software (AssetLife).

Outlook

Commenting on the result the Managing Director, Mr Andrew Hansen, said:

"The previous financial year was one of the most difficult periods in the company's history. While there is more work to be done, the result for the first half clearly indicates that we have turned the corner and will emerge as a stronger company.

"While we are yet to see any significant improvement in international billing systems markets in either the telecommunications or utilities industries, we have had success in the domestic utilities markets, where our proprietary Hub billing system is gaining market acceptance.

"If the run rate achieved in the first half is maintained, revenue of around \$60 million will be achieved for the full year. Maintaining this run rate throughout the year will represent a challenge. Notwithstanding this, we are confident of achieving significant revenue growth over the previous year."

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(2) the figures for the period ending 31 December 2001 have been restated to account for the inaccuracies in Hansen North America's revenue and earnings, as previously announced to the market on 4 September 2002 and subsequently clarified in the June 2002 Annual Report and Appendix 4B.

News Release Hansen Technologies results for the 8 months to 31 December 2002.

About Hansen

The Hansen Technologies Group is an information technology systems and services provider. It develops, integrates and supports billing system software for the utilities and telecommunications industries and also provides outsourcing and facilities management services. Founded in 1971, Hansen has operations in Australia, the United Kingdom and Europe, the United States and New Zealand. It is listed on the ASX (company code HSN).

For further information contact:

Mr Andrew Hansen Managing Director Hansen Technologies Limited (613) 9840 3000

Mr Niv Fernando Manager Corporate Development Hansen Technologies Limited (613) 9840 3000 niv.fernando@hsntech.com www.hsntech.com

(2) the figures for the period ending 31 December 2001 have been restated to account for the inaccuracies in Hansen North America's revenue and earnings, as previously announced to the market on 4 September 2002 and subsequently clarified in the June 2002 Annual Report and Appendix 4B.