secunet Security Networks AG

Earnings Release • May 6, 2004

News Details

Corporate | 6 May 2004 07:30

Secunet AG: Unsatisfactory start into fiscal year 2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Unsatisfactory start into fiscal year 2004 secunet recorded revenues of EUR 4.3 million in the first quarter of 2004. This is a decline of 14 percent compared to the same period of 2003 (EUR 5.1 million). The moderate development of revenues was primarily due to the persistently weak economic environment. The significant reduction of orders received from a major customer and previous shareholder, Deutsche Telekom, also negatively affected revenues. The first quarter of 2004 should be the last quarter in which this effect is reflected in revenues to such an extent. Earnings before interest and taxes (EBIT) for the first three months of 2004 came in at minus EUR 0.6 million, which is EUR 0.3 million below the EBIT of the first quarter of 2003 (minus EUR 0.3 million). There was a net loss of EUR 0.3 million in the first three months of fiscal year 2004 (first quarter of 2003: minus 0.2 million), which corresponds to earnings per share of minus EUR 0.05 (first quarter of 2003: minus EUR 0.03). Personnel expenses decreased by 3 percent, other operating expenses increased by 17 percent to EUR 1.3 million (first quarter of 2003: EUR 1.1 million). This item was impacted by the additional expenses connected with the integration of Secartis AG. As of 31 March 2004, cash and cash equivalents amounted to EUR 2.7 million, which is a decline of EUR 6.2 million compared to 31 December 2003 (EUR 8.9 million). This item primarily reflects the completed acquisition of Secartis AG (purchase price: EUR 4 million) and the payment of the annual bonus for 2003. With total assets of EUR 16.2 million as of 31 March 2004, secunet had an equity ratio of 72 percent. Orders on hand increased by EUR 1.7 million in the first quarter of 2004 to EUR 7.8 million as of 31 March 2004 (31 December 2003: EUR 6.1 million). As of 26 March 2004, the international technology group Giesecke & Devrient (G&D) had taken over the entire secunet share package owned by T-Systems International GmbH (25 percent plus 1 share), as well as an additional 22 percent from the former secunet majority shareholder RWTÜV AG. G&D therefore holds around 47 percent of secunet as of the start of May 2004. The public takeover bid made by G&D at the same time (price: EUR 4.80 per share) has thus far been accepted for approximately 31,000 shares (0.5 percent of secunet’s share capital). The extended term of acceptance will run until 11 May 2004. If G&D owns less than 50 percent of secunet’s shares after the term of acceptance for the takeover bid has expired, it has the option of purchasing the missing stock from RWTÜV AG. This majority interest will lead to an ideal situation for secunet. On one hand, secunet will operate under the umbrella of the G&D Group, which wants to actively expand its competence in the area of IT security, and on the other hand, secunet will retain its corporate independence. In this regard, plans are also being made for secunet to continue operating as a listed company. As of 1 April 2004, secunet took over 100 percent of Secartis AG, which also specializes in IT security solutions, from G&D. As a result of the takeover, the number of secunet employees increased by 41 to 213. The management is therefore holding firm to the goal of achieving annual sales on the order of EUR 25 to 30 million and a balanced annual result. For further information please contact: Dr. Jörg Chittka, Head of Investor Relations, secunet Security Networks AG, Tel.: +49 (0)2054 123 127, Fax: +49 (0)2054 123 456, Email: investor.relations@secunet.com end of message, (c)DGAP 06.05.2004 ——————————————————————————– WKN: 727650; ISIN: DE0007276503; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 060730 Mai 04