secunet Security Networks AG

Earnings Release • Feb 2, 2007

News Details

Corporate | 2 February 2007 19:10

secunet Security Networks AG: Downturn vis-à-vis 2005, positive development during the year

secunet Security Networks AG / Preliminary Results

Corporate news transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

• Turnover at € 36.5 million, EBIT € 2.1 million
• Results fully in line with forecast
• Orders on hand plus 2 % compared to previous year
• New corporate structure for optimised market presence

[Essen, 2 February 2007] secunet Security Networks AG, a leading European
provider of services and products for complex IT security solutions,
announces its preliminary results for the 2006 fiscal year which give it a
turnover of € 36.5 million and earnings before interest and taxes (EBIT) of
€ 2.1 million. These figures are fully in line with the forecast given for
2006. 4th quarter 2006 business results drive forward the positive trend
shown over the year whilst the large amount of orders on hand at the year’s
end give further grounds for confidence.
secunet today presented the provisional non-certified figures for turnover
and earnings for the 2006 fiscal year. They show a 11 % drop in turnover
vis-à-vis 2005 from € 40.8 million to € 36.5 million. The main reason for
weak turnover in 2006 was lack of demand from government customers in the
first half-year 2006. The late passage of the budget put a heavy brake on
procurement activities during this period. With no major changes to its
cost structures, secunet achieved pre-tax earnings of € 2.1 million. This
represents a drop of 53 % compared to the 2005 figures.
In spite of a disappointing overall result, secunet has shown a significant
positive development throughout the 2006 fiscal year. Starting with a
relatively weak first quarter, both turnover and EBIT steadily rose from
quarter to quarter. In the 4th quarter 2006 secunet achieved turnover of €
11.8 million, a minus of 18 % compared to the record turnover of Q4-2005 (€
14.3 million). At the same time EBIT reached € 1.3 million for Q4-2006 (-17
% compared to Q4-2005). The Q4-2006 EBIT margin comes to 11.0 % compared to
the 11.2 % margin achieved in 2005.
To make it more independent of cyclical downturns in demand from specific
customer groups, secunet has restructured its corporate organisation. Its
two divisions 'Public Sector' and 'Private Sector' now make a clear
distinction in addressing the existing target groups of government, public
agencies and international organisations on the one hand, and private
sector companies on the other. Within the divisions the focus is now very
much on specialist areas. In the Public Sector division the core
competencies in cryptology technologies and the SINA flagship product are
now located in the High Security unit whilst the Government unit covers all
other services and products for public sector customers. The 'Private
Sector' division includes the Automotive unit for specialised automotive
security whilst its Business Security unit covers IT security solutions for
private sector companies.
'Our new form of organisation enables us to respond to our customers’
requirements in a more focussed, more nuanced and much more demand-oriented
way, ' says Dr. Rainer Baumgart, CEO of secunet Security Networks AG. 'And
this gives us further grounds for expecting yet another satisfactory growth
rate in the 2007 fiscal year.'
Another reason for confidence is the positive state of orders on hand as of
31 December 2006 – at € 14.5 million it is some 2 % up over last year’s
figures.

secunet shall publish the final figures for the 2006 fiscal year and its
annual report on 29 March 2007.
For more information, please go to: www.secunet.com.

Dr. Kay Rathke
Head of Corporate Communications
secunet Security Networks AG
Kronprinzenstrasse 30
45128 Essen/Germany
Tel: +49 201 54 54-300
Fax: +49 201 54 54-301
E-Mail: presse@secunet.com
http://www.secunet.com

DGAP 02.02.2007

Language: English
Issuer: secunet Security Networks AG
Kronprinzenstrasse 30
45128 Essen Deutschland
Phone: +49 (0)201 - 5454 - 0
Fax: +49 (0)201 - 5454 - 456
E-mail: investor.relations@secunet.com
WWW: www.secunet.com
ISIN: DE0007276503
WKN: 727650
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München,
Stuttgart

End of News DGAP News-Service

---