USU Software AG — Earnings Release 2006

Mar 27, 2007

News Details

Corporate | 27 March 2007 10:00

USU Software AG: USU publishes definitive figures for 2006 fiscal year – net profit for the year doubled to more than EUR 2 million

USU Software AG / Final Results

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

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• Sales revenues increase by 24.3% to EUR 25.9 million
• Above-average 51% increase in license revenues
• Robust financing with equity ratio at 82%
• Group employee figures significantly increased by 17.1%
• First dividend payment of EUR 0.10 per share proposed
• Further doubling of net profit planned

Business service management specialist, USU Software AG (ISIN
DE000A0BVU28), today published its definitive business figures for the 2006
fiscal year. According to the figures, USU Software AG and its subsidiaries
(hereinafter: 'USU Group' or 'USU') increased Group sales by 24.3% to EUR
25.9 million compared with the previous year (PY: EUR 20.9 million).
Consolidated net profit for the year rose to EUR 2.1 million (PY: EUR 1.0
million), double the 2005 figure. There was also a significant increase in
earnings per share to EUR 0.23 (PY: EUR 0.12). The Management Board and the
Supervisory Board of USU Software AG will propose to the Annual General
Meeting of the Company on July 12, 2007 to distribute a dividend of EUR
0.10 per entitled share. In the current 2007 fiscal year, the Management
Board expects to generate earnings before interest, taxes and depreciation
(EBITDA) of more than EUR 4 million and consolidated net profit of more
than EUR 4.5 million from operating business.

Significant expansion of international product and solution business

Over all quarters of the 2006 fiscal year, the USU Group recorded positive
business development and, over the year as a whole in comparison with 2005,
generated an increase in Group sales of 24.3% or EUR 5.1 million to EUR
25.9 million (PY: EUR 20.9 million). This positive development was mainly
the result of the successful product and solution business in Germany and
abroad. In addition to organic growth, the acquisition of LeuTek GmbH in
November 2006 contributed to the positive business development.
Due primarily to the acquisition of numerous new customers, continued good
business with existing customers and additional sales successes in the
international partner business, USU reported an above-average increase in
license revenues of 51.0% to EUR 4.1 million (PY: EUR 2.7 million). In line
with the expansion of the licensing business, the USU Group recorded an
increase of 27.8% in maintenance income to EUR 2.9 million (PY: EUR 2.3
million). Compared with the previous year, sales from the consulting
business and other revenues increased by 19.3% to EUR 18.9 million (PY: EUR
15.9 million).
Group sales generated by the USU Group outside Germany increased by 30% in
the reporting period to EUR 3.1 million (PY: EUR 2.4 million). Accordingly,
the share in Group sales increased to 11.8% (PY: 11.3%).

Dynamic continuation of the positive earnings trend

In comparison with the sales increase, the rise in the operating function
costs was below-average in the 2006 fiscal year at 17.2% or EUR 3.6 million
to EUR 24.3 million (PY: EUR 20.7 million). As a result of expanding the
high-margin product business and the comparatively moderate cost trend, in
2006 the USU Group continued the positive earnings trend of the previous
years and achieved a considerable increase in profitability. A significant
share of the USU Group’s profit was provided by the Group subsidiary, USU
AG. In connection with the profit generation of this subsidiary and the
positive taxable income expected in the future, it was necessary to create
deferred tax assets on the unused tax losses of USU AG amounting to EUR 0.7
million in accordance with IFRS. At the same time this led to an
unscheduled goodwill amortization for the same amount included in net loss
at USU Software AG. The net after-tax effect of these measures is not
recognized in income.

Above-average increase in consolidated net profit

Accordingly, in the 2006 fiscal year, earnings before interest, taxes and
depreciation (EBITDA) increased by 137.5% to EUR 2.3 million (PY: EUR 1.0
million). Operating earnings before interest and taxes (EBIT) adjusted for
the unscheduled goodwill amortization improved significantly to EUR 1.7
million (PY: EUR 0.3 million). With a doubling of the consolidated net
profit to EUR 2.1 million (PY: EUR 1.0 million), the increase in the USU
Group’s profit in the 2006 fiscal year considerably exceeded the forecasts
from the Management Board of USU Software AG.

First dividend payment to shareholders proposed

With an average of 9,127,081 shares in circulation (PY: 8,830,128), USU
also considerably improved earnings per share from EUR 0.12 in 2005 to EUR
0.23 in the 2006 fiscal year. The Management Board and the Supervisory
Board of USU Software AG have therefore decided to propose to the Annual
General Meeting of the Company on July 12, 2007 to distribute a dividend of
EUR 0.10 per entitled share. Thus, the shareholders of USU Software AG will
participate for the first time directly in the Company’s success.

Solid financing without liabilities to banks

After payment of the purchase price for LeuTek GmbH and the earn-out
payment in connection with the acquisition of Omega Software GmbH, liquid
and near-liquid funds as at December 31 2006 totaled EUR 8.4 million (PY:
EUR 15.7 million). At the end of the reporting year, equity was EUR 42.7
million (PY: EUR 36.1 million). With total assets of EUR 52.0 million (PY:
EUR 43.0 million), the equity ratio was 82.0% (PY: 84.0%).

Additional increase in number of Group employees

As at December 31, 2006, the staff in the USU Group increased by 17.1% over
the previous year to a total of 233 (PY: 199) employees. The absolute
increase in the number of staff primarily resulted from the acquisition of
LeuTek GmbH and personnel increases at the Group subsidiary USU AG.

Significant increase in orders on hand

Compared to the balance sheet date at the end of 2005, the USU Group’s
orders on hand increased as at December 31, 2006 by 81.6% to EUR 10.9
million (PY: EUR 6.0 million). This includes firm orders of EUR 3.9 million
of LeuTek GmbH acquired in November 2006.

Further doubling of net profit planned for 2007

After the positive business development of recent quarters, the Management
Board of USU Software AG expects the Company’s development in the near
future to be just as dynamic, driven primarily by the product and solutions
business. In addition to organic growth, LeuTek, which was acquired in
November 2006, is also expected to contribute to considerable sales and
earnings growth in the 2007 fiscal year. Overall, the Management Board
plans to increase Group sales to between EUR 32 million and EUR 33 million
in the 2007 fiscal year. Operating earnings (EBITDA) after adjustment for
special effects from the capitalization of deferred taxes and associated
goodwill amortization is expected to be more than EUR 4 million. After
taxes, the Management Board anticipates consolidated net profit of more
than EUR 4.5 million. The shareholders of USU Software AG are to
participate in the Company’s operating success in the form of a dividend.

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USU Software AG. The Knowledge Business Company

The USU Software AG (DE000A0BVU28) offers with its company network
appliances, products and consulting all about Knowledge Business, aligned
for the future.

For example Valuemation. Our clients obtain a broad and complete overview
over their IT processes, IT infrastructure and are able to display their IT
costs transparently, to account and control actively. More than 500 clients
administrate with this product group more than 30 million IT assets.

For example KnowledgeMiner. As an integrated research and navigation system
or portal solution, we activate the complete knowledge of a single
organisation with this technology. Call and service centres solve more than
ten thousand individual problems and requests day for day, using the
technology. Departments like quality assurance, production or distribution
fasten their core processes and improve their quality.

The ability to form branch knowhow, competence of technology and user
demands to an integrated software system, has been convincing clients for
more than two decades in all fields of the German economy. The USU Software
AG is listed in the Prime Standard of the Frankfurt stock exchange as well
as the Gate-M of the Stuttgart stock exchange.

For further information please contact:

USU Software AG
Investor Relations
Falk Sorge
Tel.: +49 7141 4867 351
Fax: +49 7141 4867 108
E-Mail: f.sorge@usu-software.de

USU Software AG
Corporate Communications
Dr. Thomas Gerick
Tel.: +49 7141 4867 440
Fax: +49 7141 4867 909
E-Mail: t.gerick@usu-software.de

DGAP 27.03.2007

Language: English
Issuer: USU Software AG
Spitalhof
71696 Möglingen Deutschland
Phone: +49 (0)7141 4867-0
Fax: +49 (0)7141 4867-108
E-mail: investor@usu-software.de
www: www.usu-software.de
ISIN: DE000A0BVU28, DE000A0LR7T6, DE000A0LR4U4, DE000A0LR7V2
WKN: A0BVU2, A0LR7T,A0LR4U,A0LR7V
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf

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