IVU Traffic Technologies AG — Earnings Release 2003

Nov 14, 2003

News Details

Ad-hoc | 14 November 2003 08:26

IVU Traffic Technologies english

IVU Traffic Technologies AG (WKN 744 850) announces nine-months’ figures Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– IVU Traffic Technologies AG (WKN 744 850) announces nine-months’ figures IVU Traffic Technologies AG earned Euro14.2 million in sales during the first nine months of the current fiscal year, which amounts to a 25 percent decline over the same period in the previous year. Earnings before interest and taxes (EBIT) dropped 89 percent to Euro-6.9 million, while the Euro-7.4 million in consolidated net profit is 80 percent less than the figure reported for the first nine months of 2002. Both EBIT and consolidated net profit are not fully comparable to the previous year, since the company derived substantial extraordinary gains from the sale of companies and the write-back of reserves in 2002. Adjusted for these special effects and for one-time expenses arising from layoffs, EBIT dropped roughly 39 percent to Euro-6.4 million, while consolidated net profit shrank 35 percent to Euro-6.9 million compared to the first three quarters of 2002. The fact that IVU typically reports negative results in the first three quarters of the year is due to the seasonal nature of its business. Over half the company’s annual revenues are usually generated in the fourth quarter, while costs are evenly distributed over all four quarters. Nevertheless, revenues fall short of the original plan figures by Euro four million, and, contrary to expectations in the semi-annual report, IVU will no longer be able to close this gap. The company now expects to generate Euro32 million in sales for the current year and report a negative result of Euro five million. IVU sees light at the end of the tunnel for 2004. The staff cuts that were made in the spring and the decision to close the Hannover office will improve IVU’s cost structure by over two million euros. In addition, the company expects the overall picture for the coming year to brighten appreciably. Intensified sales efforts will also generate more revenue. The complete report can be found at http://www.ivu.de. For more information, contact: Gerd Henghuber Head of Corporate Communications Phone +49.30.85906-800 end of ad-hoc-announcement (c)DGAP 14.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Press Release For the business press Berlin, 14 November 2003 Nine months’ figures for fiscal year 2003 IVU Traffic Technologies AG earned Euro14.2 million in revenues during the first nine months of the current fiscal year, which amounts to a 25 percent decline over the same period in the previous year. Earnings before interest and taxes (EBIT) dropped 89 percent to Euro-6.9 million. The Euro-7.4 million consolidated net profit was also 80 percent less than in the first nine months of 2002. Both EBIT and consolidated net profit for the first nine months of 2003 are not fully comparable to the previous year, since the company derived substantial extraordinary gains from the sale of companies and the write-back of reserves in 2002. Adjusted for these special effects, EBIT shrank 50 percent over a twelve- month period, while consolidated net profit declined 45 percent. In addition, we incurred and posted one-time expenses worth Euro0.5 million in the accounting period, due to the personnel measures implemented. If we subtract this one-time effect from the profit and loss statement, EBIT drops a mere 39 percent to Euro-6.4 million compared to the first three quarters, while consolidated net income declines 35 percent to roughly Euro-6.9 million. The fact that IVU typically reports negative results in the first three quarters of the year is due to the seasonal nature of its business. Over half the company’s annual revenues are usually generated in the fourth quarter, while costs are evenly distributed over all four quarters. “We are nevertheless not yet happy with the figures for the nine-month period”, says IVU CEO Prof. Dr. Ernst Denert. Revenues will fall short of the original plan figures by around Euro four million, and, contrary to expectations in the semi-annual report, IVU will no longer be able to close this gap. The company therefore retracts its revenue and results forecast for the current year. Instead, IVU Traffic Technologies AG expects to report Euro32 million in revenues, and consequently a negative result of Euro five million, for 2003. Nevertheless, the company sees light at the end of the tunnel. The staff cuts that were made in the spring and the decision to close the Hannover office will improve IVU’s cost structure by over two million euros next year. In addition, the company expects the overall picture for the coming year to brighten appreciably. The transport sector will quickly benefit from the economic recovery, and companies will want to use the newly installed Lkw-Maut kilometre levy on-vehicle computers for purposes other than calculating the levy. In the public transport segment, IVU has a very large base of prominent and satisfied customers in Europe and beyond who are ordering more and more products from the company’s integrated IT platform. Intensified sales efforts will also generate more revenue. “We will be operating at much greater efficiency as we enter the coming year, and we are increasingly more optimistic that 2004 will see a return to the black”, says IVU CEO Prof. Dr. Ernst Denert. The complete report can be found at www.ivu.de. IVU Traffic Technologies offers IT solutions for the planning and management of traffic and transport systems, and for the optimisation and monitoring of logistics processes throughout Europe and beyond. Building on more than 25 years of experience, IVU supplies standardised software products and tailored IT solutions to companies and institutions with a focus on the logistics, traffic, transport and e-Government industries. The Berlin-based software company works with its customers as a systems integrator and key contractor. For more information, contact: Gerd Henghuber Head of Corporate Communications IVU Traffic Technologies AG Bundesallee 88, 12161 Berlin Germany Phone +49.30.85906-800 Telefax +49.30.85906-111 E-Mail: gerd.henghuber@ivu.de Internet: http://www.ivu.de ——————————————————————————– WKN: 744850; ISIN: DE0007448508; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hannover, München und Stuttgart 140826 Nov 03