secunet Security Networks AG

Earnings Release • Nov 8, 2007

News Details

Corporate | 8 November 2007 07:45

secunet 9 month results 2007: Still on course for growth

secunet Security Networks AG / Quarter Results

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secunet 9 month results 2007: Still on course for growth

• Sales grow by 10 percent to Euro 27.1m
• EBIT at Euro 1.0m is up by 20 percent
• Orders on books valued at Euro 21.1m continue at a very high level
• Good business development in all areas

[Essen, 8th November 2007] secunet Security Networks AG, a leading supplier
of solutions and products related to IT security, has increased sales in
the first nine months of 2007 in comparison with the previous year by 10
percent to Euro 27.1m. Business continues to be profitable: the EBIT figure
for the end of September stood at Euro 1.0m, representing an increase of 20
percent in comparison with the previous year. The value of orders on hands
stood at Euro 21.1m on the 30th September, an increase of 21 percent in
comparison with the figure for the previous year. In all its areas of
business activity the company can see a continued positive trend: The
outlook for 2007 is therefore an optimistic one.

From January to September 2007 the secunet group achieved sales of Euro
27.1m. Sales for the same period in the previous year were exceeded by 10
percent. The reason for this is the continued and growing demand for IT
security. In the third quarter of 2007 income from the secunet group’s
sales increased by 6 percent from Euro 9.5m in the previous year to Euro
10.1m.
The increase in cost items for the secunet group was proportionately less
in relation to the growth in turnover: secunet was therefore able to
achieve earnings before interest and tax (EBIT) for the first nine months
of 2007 amounting to Euro 1.0m, an increase of 20 percent in comparison
with the previous year. In the third quarter of 2007 the EBIT figure rose
by 18 percent from Euro 0.5m in the previous year to Euro 0.6m.
For the period from January to September the Public Sector division
achieved sales of Euro 18.2m and an EBIT figure of Euro 0.7m. The Private
Sector division finished the first nine months of the year with sales of
Euro 8.9m and an EBIT figure of Euro 0.3m. The Public Sector division
addresses the demand from state organisations and bodies for IT security
and high security; the Private Sector division is oriented towards
customers in that sector.
The improved results situation is also reflected in the cash flow. Despite
cash outflows for variable compensation and changes in current assets, cash
flow from business activities improved from Euro -7.6m in the previous year
to Euro -3.4m for the first nine months of 2007.
Following the corporate tax reform passed in the summer secunet is
reversing
provisions for deferred taxes. The tax burden is thus increased and net
income for the first nine months of 2007 is therefore Euro 0.5m in
comparison with Euro 0.6m for the previous year.
The level of orders on hands increased to a value of Euro 21.1m as of the
30th September 2007; an increase of 21 percent in comparison with the
previous year. Additional sales revenues from long term framework
agreements with German public authorities are not included in this figure.
The secunet group has been successful in all areas of business activity:
sales to foreign customers showed a marked increase. SINA is finding new
buyers in industry.
'The way in which business has developed this year confirms that our
strategy is the right one', according to Dr Rainer Baumgart, Chairman of
the Executive Board of secunet Security Networks AG. 'We are concentrating
on our core competence in IT security, increasing business abroad and are
reaching more target customer groups in the private sector.'
Current figures and the outlook for the fourth quarter of 2007 prompt the
Executive Board of secunet Security Networks AG to concretise their
forecast for 2007: sales revenues are expected to be of a similar order as
for 2005. Earnings before interest and tax (EBIT) will be markedly above
that for the previous year. Whether the record profits of the year 2005 can
be achieved depends on the composition of sales in the last
quarter.

Dr. Kay Rathke
Head of Press Relations

Patrick Franitza
Press Relations Officer

secunet Security Networks AG
Kronprinzenstrasse 30
45128 Essen/Germany
Phone +49 201 54 54-300
Fax +49 201 54 54-301
E-mail: presse@secunet.com
http://www.secunet.com

08.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: secunet Security Networks AG
Kronprinzenstrasse 30
45128 Essen
Deutschland
Phone: +49 (0)201 - 5454 - 300
Fax: +49 (0)201 - 5454 - 301
E-mail: investor.relations@secunet.com
Internet: www.secunet.com
ISIN: DE0007276503
WKN: 727650
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart

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