Syzygy AG

Earnings Release • May 9, 2001

News Details

Ad-hoc | 9 May 2001 21:28

Ad hoc-Service: Syzygy AG english

Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– syzygy AG releases results for first Quarter 2001: – In spite of volatility in the IT Services sector, sales rose 8.3% to 4.051 million Euros from the comparative period in 2000 – EBITDA loss of 498,000 Euros in Q1, as forecasted earlier – Important new project wins with our Blue-chip clients in our key vertical markets – Cash position of 54.4m Euros Bad Homburg, 10. May 2001 syzygy AG, the pan-European eBusiness solutions provider, announced today that reve-nues for the first quarter ended 31 st March 2001 increased 8% from Eur3.741 million in the comparable period of the prior year (pro forma) to Eur4.051 million. Operating results (EBITDA) for the first quarter showed a loss of Eur498,000, compared with a pro forma profit (EBITDA) of Eur494,000 for the first quarter of 2000. The corresponding EBITDA margin declined from 13.2% to -12.3%. The pro forma net profit of Eur21,000 in the first quarter of 2000 was reduced to a loss of Eur209,000 in 2001. The company’s cash and cash equivalents, plus marketable securities at the end of the quarter totalled Eur54.4 million (2000: Eur1 million); the reduction of Eur1.5 million vs. 31.12.2000 resulting from tax prepayments, the reduction of current liabilities and operating expenses of Eur295,000. The fiqures for the group are as follows: 1st quarter 2001 1st quarter previous year 4th quarter 2000 2000* Sales Eur4.051 million Eur3.741 million +8.3% Eur4.482 million EBITDA Eur-0.498 million Eur0.494 million n.m. Eur-0.362 mil- lion EBITDA margin -12.3% 13.2% n.m. -8.08% Result for the Eur-0.209 million Eur0.021 million n.m. Eur-0.945 mil- period lion Earnings per Eur-0.02 n/a n/a Eur-0.08 share *pro forma end of ad hoc announcement (c) DGAP 09.05.2001 Issuer’s information/explanation remarks concerning this ad hoc announcement: Explanations to the tradinq of the 1st quarter 2001 Sales Weaker market conditions in the IT Services and eBusiness sector prevailed throughout the first quarter of 2001. syzygy experienced varied market growth and development in its core European markets. The German business grew sales by more than 80% over the comparative period for the previous year. The French Operation saw flat sales growth and in the UK sales declined by 13% versus the first quarter of 2000. Based on its vertical market strategy, syzygy won additional projects with existing clients such as Commerzbank, DaimlerChrysler, Viaglnterkom and Vivendi. Profitabilitv The Group’s profitability in the first quarter of 2001 was impacted by the low level of revenues in France, a weak UK performance in January and February and continued unsatis-factory development in Ireland. syzygy responded to market conditions by restructuring the UK Operation, closing down its Office in Dublin and postponing both the expansion into Spain and additional Group appointments. People During the first quarter of 2001, syzygy reacted to the current difficult market Situation and aligned its work force accordingly. As per 31.03.2001 syzygy employed 174 people vs. a staff of 190 (31.12.2000), the restructuring in the UK was predominantly focused on front end functions. Outlook Due to the recent restructuring and recent project wins with a new automotive client, a new financial Services client, Tradesurface an internet based marketplace for trade finance for the Professional market, and St. Gobain, syzygy expects sales of the second quarter to exceed those of the reported quarter, syzygy further forecasts a significant reduction of the EBITDA loss. Sales visibility for the second quarter runs at 75%. A product manager joined syzygy in April to accelerate the development of the fully XML-based SyCOMAX content management solution into a stand alone product. This will en-abie syzygy to generate additional revenues and to diversify its revenue streams. syzygy AG The Board of Management Contact: syzygy AG Joachim Sorg Investor Relations Im Atzelnest 3 61352 Bad Homburg/Germany Tel.: +49-6172-9488-0 Fax:+49-6172-9488-270 E-mail: j.sorg@syzygy.net / www.syzyqy.net ——————————————————————————– WKN: 510 480; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 092128 Mai 01