USU Software AG — Earnings Release 2003

Aug 1, 2003

News Details

Ad-hoc | 1 August 2003 07:59

USU-Openshop AG english

USU-Openshop AG publishes six-month figures 2003 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Möglingen, 1 August 2003 – In the first six months of the 2003 financial year USU-Openshop AG improved consolidated EBIT considerably to EUR -2.1 million (PY: EUR-11.5 million, pro forma* PY: EUR -14.5 million). In so doing, the restructuring measures executed in the previous year, in particular, resulted in a significant reduction of the cost basis. The loss achieved over the first six months of the 2003 financial year was also considerably lower than in the previous year, at EUR -1.0 million (PY: EUR -10.0 million, pro forma* PY: EUR -15.3 million). The result per share amounted to EUR -0.06 during the reporting period (PY: EUR -0.70 per share, pro forma* PY: EUR -0.89 per share). USU-Openshop achieved EUR 10.0 million sales (PY: EUR 9.1 million, pro forma* PY: EUR 13.5 million) in the first half of 2003, in a sustained difficult economic environment. Streamlining the portfolio, the extensive reduction of personnel and increasingly fierce competition on price over the first half of 2003 resulted in a sales decline on pro forma* basis against the previous year. At the same time, budget cuts and delayed projects negatively impacted sales development in the licensing area. Liquid funds and investments totalled EUR 48.7 million (31 December 2002: EUR 55.3 million) at the end of Q2 2003. The Management Board expects the result to improve further in the second half of 2003. Achieving the profitability target will largely depend on the stabilisation of licensing fees. *The reporting period comprises the first half of 2003, consisting of the six months from 1 January 2003 to 30 June 2003. Correspondingly, the comparative period of the previous year consists of the six months from 1 January 2002 to 30 June 2002. In the previous year USU AG was consolidated with effect of 11 March 2002. To secure comparability of information for the first half of 2003 with that for the comparable period of the previous year additional pro forma details are posted for the profit and loss statement, presenting a pro forma consolidation of USU AG as at 1 January 2002. end of ad-hoc-announcement (c)DGAP 01.08.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: USU-Openshop AG publishes six-month figures 2003 – Significant reduction of net loss with lower costs – Restrained sales development in the first half of 2003 – Stable balance sheet structure and secure liquidity base – Further improvement of result expected for second half of 2003 Möglingen, 1 August 2003. In the first six months of the 2003 financial year USU-Openshop improved EBIT significantly against the previous year, to EUR -2.1 million (PY: EUR -11.5 million, pro forma* PY: EUR -14.5 million), on the basis of the targeted cost reduction. At EUR -1 million, the net loss was also considerably lower (PY: EUR -10.0 million, pro forma* PY: EUR -15.3 million). At EUR 10.0 million (PY: EUR 9.1 million, pro forma* PY: EUR 13.5 million) consolidated sales of the company during the reporting period were below the pro forma sales of the previous year. The Management Board anticipates a further improvement of result in the second half of 2003 against the first six months of the current financial year. USU-Openshop succeeded in significantly reducing its cost basis in the first half of 2003 due to the restructuring measures executed in the previous year. Thus the marketing and sales, research and development as well as general and administrative costs in the reporting period dropped considerably against the previous year, to EUR 5.4 million (PY: EUR 13.3 million, pro forma* PY: EUR 14.6 million). As a result, group EBIT improved from EUR -11.5 million in the previous year (pro forma* PY: EUR -14.5 million) to EUR -2.1 million in the reporting period. The net loss of the first six months of the 2003 financial year was also considerably lower at EUR -1.0 million than in the previous year (PY: EUR -10.0 million, pro forma* PY: EUR -15.3 million). With the average number of outstanding shares being 17,211,186 (PY: 14,255,231 shares, pro forma* PY: 17,211,186 shares), the company achieved a result per share of EUR -0.06 (PY: EUR -0.70 per share, pro forma* PY: EUR -0.89 per share) over the reporting period. At EUR 10.0 million, consolidated half-year sales were under the yoy value on a pro forma* basis of the previous year (PY: EUR 9.1 million, pro forma* PY: EUR 13.5 million). Apart from the adjustment of the portfolio, the extensive reduction of personnel and the increasingly fierce price competition in the first half of 2003, budget cuts and delayed projects negatively impacted sales development in the licensing area. Structured by segment, the product sector IT-Controlling achieved revenues of EUR 4.2 million and the solution sector Business Solutions EUR 5.8 million. In operating business, projects at companies such as AGIS, Wüstenrot & Württembergische, Stadt Köln and Volkswagen, were continued. In the automotive area USU-Openshop gained a further well-known customer for the software product Valuemation, in MAN. Liquid funds and investments totalled EUR 48.7 million (31 December 2002: EUR 55.3 million) at the end of Q2 2003. The reduction of liquid funds results predominantly from the reduction of liabilities at the company to a total of EUR 8.1 million to the end of the reporting period (31 December 2002: EUR 13.0 million). The company also purchased a further 165,000 shares of USU AG in April 2003 and posted costs of EUR 1.6 million in the context of the scheduled complete takeover of USU AG. As a result, the balance sheet total dropped to EUR 81 million (31 December 2002: EUR 86.4 million) as per 30 June 2003. Equity amounted to EUR 72.8 million (31 December 2002: EUR 72.9 million) as at 30 June 2003. The equity ratio was 89.9% (31 December 2002: 84.4%). The Management Board anticipates an overall improvement in business development for the second half of 2003. A focus will be on the further reduction of the deficit. Achieving the goal of profitability will largely depend on the stabilisation of licensing fees. *The reporting period comprises the first half of 2003, consisting of the six months from 1 January 2003 to 30 June 2003. Correspondingly, the comparative period of the previous year consists of the six months from 1 January 2002 to 30 June 2002. In the previous year USU AG was consolidated with effect of 11 March 2002. To secure comparability of information for the first half of 2003 with that for the comparable period of the previous year additional pro forma details are posted for the profit and loss statement, presenting a pro forma consolidation of USU AG as at 1 January 2002. This corporate announcement and further information material on USU-Openshop AG are available under http://www.usu-openshop.com Contact: USU-Openshop AG / Corporate Communications Dr. Thomas Gerick Tel.: +49 71 41 / 48 67 440 Fax: +49 71 41 / 48 67 909 E-Mail: t.gerick@usu-openshop.com USU-Openshop AG / Investor Relations Falk Sorge Tel.: +49 71 41 / 48 67 351 Fax: +49 71 41 / 48 67 108 E-Mail: f.sorge@usu-openshop.com ——————————————————————————– WKN: 780470; ISIN: DE0007804700; Index: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München und Stuttgart 010759 Aug 03