secunet Security Networks AG

Earnings Release • Nov 6, 2008

News Details

Corporate | 6 November 2008 07:34

secunet after the Third Quarter 2008: Strong growth rate, high volume of orders

secunet Security Networks AG / Quarter Results/Interim Report

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secunet after the Third Quarter 2008: Strong growth rate, high volume of
orders

• Continued strong growth in sales (+ 22%)
• High expenses for project preparations have negative impact on results
• Volume of orders increases by 18 percent with respect to previous quarter
• Outlook for the whole year: Confirmation of the sales forecast, results
  will depend on Q4

[Essen, 6th November 2008] secunet Security Networks AG, a leading European
provider of solutions and products for IT security and high security, has
continued its strong growth in sales in Q3-2008. With this, secunet was
able to achieve a 22 percent increase in the net sales amounting to Euro
33.2 million in the first nine months of 2008. With high capacity
utilisation, the volume of orders in the third quarter has gone up by 18
percent. The expenses in preparation for large projects have however
brought down the results. The Board of Directors of the company has
therefore corroborated its outlook for the sales in 2008. The results
forecast will depend to a large extent on the fourth quarter.

The corporate turnover of secunet Security Networks AG increased from Euro
27.1 million in the first nine months of 2007 by 22 percent to Euro 33.2
million in the current year. The main growth driver continues to be the
business division High Security, which provides the high security
technology SINA. Here the sales went up by 60 percent compared to the
previous year.
The trends in the expense positions have been different compared to the
first nine months of 2007. Depreciations have decreased by 4 percent.
Personnel costs have gone up inordinately compared to the sales, by 6
percent. The other operating expenses have increased by 18 percent over the
previous year in the first nine months of 2008, mainly as a result of the
increase in the sales activities. The expenses on materials and services
availed went up significantly by 73 percent in the first nine months of
2008 as against the previous year. This expense position is influenced on
one hand by the hardware services in connection with the growing SINA
business and on the other hand, by expenses for external services. This is
because secunet had to fall back on the services of external providers to
deal with capacity crunches and to make up for the employees who were taken
out from the productive sector and engaged in project preparations.
On the whole, the expenses in the secunet Group went up by 26 percent from
Euro 26.7 million in the period from January to September 2007 to Euro 33.6
million in the current year, this is disproportionately high when we look
at the turnover. As a consequence, the earnings before interests and taxes
(EBIT) in the first nine months of 2008 receded in comparison with the
previous year: compared with Euro 1.0 million for the same period in the
preceding year, Euro 0.3 million were achieved this year, recording a
decrease of 68 percent. After taxation the surplus for the period for the
first nine months of 2008 was Euro 0.55 million, as against Euro 0.52
million in the previous year. The earnings per share remain unchanged, at
Euro. 0.08
The cash flow from business operations was negative owing to the drop in
reserves and liabilities as well as in the build up of receivables in the
first nine months. The cash flows from the investments and financing
activity have had only a small impact. On the whole, the level of cash and
cash equivalents in the secunet Group went down by Euro 3.4 million in the
first nine months of 2008 by, against a reduction of Euro 4.0 million in
the previous year.
With the continued high utilisation of capacities, which is reflected in
the sales figures, the volume of orders has gone up significantly: As on
30th September 2008 it amounted to Euro 22.2 million, a plus of 18 percent
over the status at the end of June 2008.
'This year, we have won orders for the execution of several large IT
security projects, and have thereby secured growth in our revenues over
long term', commented Dr. Rainer Baumgart, CEO of secunet Security Networks
AG. 'The high expenses incurred for successful sales and marketing and by
the preparations for these important projects have no doubt had a negative
impact on the current financial year, but will pay off in future.'
Based on the development of business after the first nine months of 2008,
the Executive Board of secunet Security Networks AG has confirmed its
expectations of a two-digit increase in sales compared to the previous
year. The annual results, like in the previous years, will be determined to
a large extent by the developments in the fourth quarter of 2008.

Dr. Kay Rathke
Director Corporate Communications
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

06.11.2008 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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