USU Software AG — Earnings Release 2002

Nov 29, 2002

News Details

Ad-hoc | 29 November 2002 14:04

USU-Openshop AG english

USU-Openshop AG announces result for the first three quarters of 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– The reporting period covers the first three quarters of 2002 financial year, consisting of the nine months from January 1, 2002 to September 30, 2002. USU AG was consolidated as at March 11, 2002. To ensure the comparability of the figures for the first three quarters of 2002 with those of subsequent periods, additional pro forma information is posted on the income statement, presenting a pro forma consolidation of USU AG as of January 1, 2002. Moeglingen, November 29, 2002 – Over the first nine months of the 2002 financial year USU-Openshop generated consolidated sales totalling EUR 14.0 million (PY: EUR 3.6 million). On a pro forma basis, total sales were EUR 18.4 million (PY: EUR 30.8 million). By focussing the portfolio and outsourcing areas which are unprofitable in the medium-term, there was logically a decline in sales on a pro forma basis. As announced in the half-yearly report 2002, the measures for the realignment of USU-Openshop resulted in further scheduled restructuring and non-recurring expenditure of EUR 4.0 million in the third quarter 2002. In addition, accruals of EUR 3.2 million were made. Taking into account total restructuring and non- recurring costs of EUR 12.9 million accumulated over the entire nine-month period 2002, EBITDA of the company was EUR -21.0 million (PY: EUR -16.3 million). Due to the restructuring and adjustment of the portfolio, a revaluation of the participations was undertaken in the past quarter. In the context of this impairment test required according to US-GAAP, this resulted in unscheduled amortization of goodwill of EUR 14.0 million. Overall depreciation and amortization led to a negative impact on the result of EUR 19.4 million (PY: EUR 1.2 million) which does not affect liquidity. Taking into consideration these depreciation and amortization EBIT was EUR -40.4 million (PY: EUR -17.5 million). The net loss for the first nine months of the financial year 2002 was EUR -38.6 million (PY: EUR -15.7 million). The pro forma net loss was EUR -43.9 million (PY: EUR -17.1 million). end of ad-hoc-announcement (c)DGAP 29.11.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Moeglingen, November 29, 2002 – Over the first nine months of the 2002 financial year, USU-Openshop generated consolidated sales totalling EUR 14.0 million (PY: EUR 3.6 million). On a pro forma basis sales in the reporting period totalled EUR 18.4 million (PY: EUR 30.8 million). By focussing the portfolio and outsourcing non-profitable areas, there was logically a decline in sales on a pro forma basis. At the same time ongoing restraint in terms of capital investments in the IT area adversely impacted the development of sales at the company. As announced in the half-year report 2002, the measures for the realignment of USU-Openshop in the third quarter 2002 resulted in scheduled restructuring and non-recurring expenditure of EUR 4.0 million. As a result of a conservative valuation, additional accruals of EUR 3.2 million were made for personnel and rental expenditure, value adjustments on fixed assets, inventories, receivables and other accruals. Taking into account the accumulated restructuring and non- recurring costs for the first three quarters of the 2002 financial year of EUR 12.9 million, general and administrative, research and development and selling and marketing expenses increased to a total of EUR 26.8 million (PY: EUR 19.0 million). Pro forma these expenses at EUR 30.1 million were at the level of the previous year (pro forma PY: EUR 31.7 million). Taking account of the restructuring and non-recurring expenses the company, EBITDA in the nine-month period was EUR -21.0 million (PY: EUR -16.3 million). Pro forma an EBITDA of EUR -22.5 million was generated (PY:EUR -17.2 million). As a result of restructuring and the streamlining of the portfolio, the participations were revalued in the last quarter. There were non-scheduled amortization of goodwill of EUR 14.0 million within the framework of the impairment test required according to US-GAAP. It was necessary to take a further depreciation on tangible and intangible assets due to the special depreciation for capital goods which are no longer deployed. Overall the amortization and depreciation together resulted in a charge which does not impact liquidity of EUR 19.4 million (PY: EUR 1.2 million). The pro forma figure is EUR 20.9 million (pro forma PY: EUR 2.6 million). Taking into account these amortization and depreciation an EBIT of EUR -40.4 million (PY: EUR -17.5 million) was generated. At pro forma level, the figure was EUR -43.4 million (PY: EUR -19.8 million). Earnings before tax were EUR – 38.6 million (PY: EUR -15.7 million) and pro forma EUR -41.6 million (PY: EUR – 17.5 million). The net loss for the first nine months of the 2002 financial year 2002 was EUR -38.6 million (PY: EUR -15.7 million). Pro forma the net loss was EUR -43.9 million (PY: EUR -17.1 million). With an average figure of 15,240,550 outstanding shares (PY: 9,500,000 shares), the result per share was EUR -2.53 (PY: EUR -1.66 per share). Pro forma the result was EUR -2.55 per share (PY: EUR -0.99 per share) on the basis of the average number of outstanding shares being 17,211,186. With the measures relating to the re-orientation of USU-Openshop AG now implemented, the Management Board expects a significant reduction of costs from the fourth quarter of 2002. The concentration on the two business areas Business Solutions and IT Controlling and the resultant focus of the portfolio and the locations as well as the optimisation of the cost structure forms the basis for the sustained achievement of profitability. An uncertainty factor remains the general economic development. The recently published figures on the development of gross domestic product (GDP) lagged the analyst expectations. Accordingly, the Arbeitsgemeinschaft deutsche wirtschaftswissenschaftlicher Forschungsinstitute e.V. in its 2002 Autumn report considerably lowered its earlier forecasts. For Germany, economic growth of only 0.4% is expected in 2002 and 1.4% for 2003. For 2003 the Deutsche Institut für Wirtschaftsforschung (DIW) expects growth of only 0.9%. Despite the ongoing negative overall general economic conditions, the Management Board anticipates a slight increase of sales due to the positive response regarding the presentation of the Valuemation product suite and the recent orders received. Under these conditions USU-Openshop would be able to achieve an almost balanced operating result in the last quarter of the current financial year. A positive result is also the target for the 2003 financial year. Furthermore, with liquid funds and investments totalling EUR 57.9 million, USU- Openshop AG has secured liquidity and an option for further growth through acquisitions. The Management Board will announce detailed budget figures alongside the publication of the 2002 annual financial statements at the beginning of next year. For further information please contact: USU-Openshop AG USU-Openshop AG Investor Relations Corporate Communications Falk Sorge Dr. Thomas Gerick Tel.: +49 (0) 71 41 / 48 67 351 Tel.: +49 (0) 71 41 / 48 67 440 Fax: +40 (0) 71 41 / 48 67 108 Fax: +49 (0) 71 41 / 48 67 909 email: f.sorge@usu-openshop.com email: t.gerick@usu-openshop.com ——————————————————————————– WKN: 780470; ISIN: DE0007804700; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München und Stuttgart 291404 Nov 02