USU Software AG — Earnings Release 2008

Aug 15, 2008

News Details

Ad-hoc | 15 August 2008 08:11

USU Software AG reports figures for Q2 and first half-year 2008

USU Software AG / Half Year Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Möglingen, August 15, 2008 - With Group-wide sales of EUR 8.3 million
(Q2/2007: EUR 7.4 million), USU Software AG and its subsidiaries generated
organic growth of 12.3% in the second quarter of 2008. This was primarily
driven by strong licenses business which more than doubled against the
equivalent period to EUR 1.9 million (Q2/2007: EUR 0.9 million). While the
maintenance business increased slightly year-on-year to EUR 1.6 million
(Q2/2007: EUR 1.6 million), in the reporting quarter the consulting
business at EUR 4.6 million (Q2/2007: EUR 4.9 million) generated a lower
sales contribution than achieved in the second quarter of 2007. Decisive
here were not only targeted investments in training the consulting team,
which resulted in the relevant sales losses during the trainee periods, but
also additional unscheduled investments of consulting in a large
fixed-price project. It was not only consultancy resources, but also
freelance employees who were deployed here. The additional expenditure in
combination with a higher cost basis resulted in EBITDA in the second
quarter declining year-on-year to EUR 0.5 million (Q2/2007: EUR 0.7
million). In the reporting quarter, EBIT totaled EUR 0.2 million (Q2/2007:
EUR 0.3 million). In the second quarter of 2008, net interest income
totaled EUR 0.1 million (Q2/2007: EUR 0.1 million). Last year there was tax
income of EUR 1.9 million as a result of a non-recurring effect from
capitalizing deferred tax assets at USU Software AG, while in the reporting
period there were tax expenses of EUR 0.1 million. In the second quarter of
2008, USU generated net income of EUR 0.2 million (Q2/2007: EUR 2.3
million).

In the six month period, the USU Group generated Group sales of EUR 15.7
million (Q1-Q2/2007: EUR 15.0 million). This represents a year-on-year
sales upturn of 4.5%. In the reporting period, USU Group strongly improved
licenses sales, by 43.4% to EUR 2.5 million (Q1-Q2/2007: EUR 1.7 million)
and advanced maintenance revenues by 3.4% to EUR 3.2 million (Q1-Q2/2007:
EUR 3.1 million), consulting sales at EUR 9.6 million were 4.4% down
year-on-year (Q1-Q2/2007: EUR 10.0 million).
The increase in Group costs in the first half-year of EUR 7.9 million
(Q1-Q2/2007: EUR 6.9 million) largely reflects the targeted expansion of
the internal consulting team, additional deployment of freelancers in the
consulting business of the two operating segments Service Business and
Product Business, as well as investments in additional training for the
Group workforce.
In the first half year of 2008, due to the non-recurring effect from the
consulting business, EBITDA in the USU Group totaled EUR 0.8 million
(Q1-Q2/2007: EUR 1.3 million). After taking into account the depreciation
and amortization of EUR 0.6 million (Q1-Q2/2007: EUR 0.8 million), USU
generated an EBIT of EUR 0.2 million in the reporting period (Q1-Q2/2007:
EUR 0.6 million). In the first six months of 2008, net interest income
totaled EUR 0.2 million (Q1-Q2/2007: EUR 0.2 million). In the same period,
income taxes totaled EUR -0.1 million, while in the previous year there was
tax income of EUR 1.9 million due to capitalized deferred tax assets. This
decisively impacted the earnings after tax figure. In the first half year
of 2008, the USU Group generated net income after taxes of EUR 0.3 million
(Q1-Q2/2007: EUR 2.7 million). With an average of 10,276,126 shares
(Q1-Q2/2007: 10,281,054), earnings per share amounted to EUR 0.03
(Q1-Q2/2007: EUR 0.26).

After the successful development of the licenses business in the second
quarter of 2008, and the non-recurring charges for the consulting business
no longer applying from the middle of the third quarter of 2008, the USU
Software AG Management Board forecasts a sales and earnings upturn against
the first half year of 2008 in which is generally a stronger second half of
the year. For the whole year, the Management Board expects sales growth to
be above the average of the relevant market segments, with EBITDA after the
charge on earnings in the second quarter being approximately at the level
of the previous year. On the German domestic market, the next quarters
operating business should expand, and especially licenses revenues, also
due to the launch of the two SME versions of Valuemation Express und
KnowledgeCenter Express and the new Valuemation 3.5 version. In this
connection, the international partner business is another factor
contributing to success. USU also expects maintenance and consulting
business to advance. Thus to June 30, 2008, orders on hand throughout the
USU Group increased 24.4% year-on-year to EUR 12.9 million (June 30, 2007:
EUR 10.3 million). In view of the above forecasts, the Management Board
confirms its guidance for 2009 that the USU Group will achieve sales growth
above the level of the market, with EBITDA moving up more strongly.

From August 18, 2008, the full 6-month report for 2008 is available for
downloading at www.usu-software.de.

The Management Board

Contact:
USU Software AG
Investor Relations
Falk Sorge
Tel.: +49 (0) 71 41 - 48 67 351
Fax: +49 (0) 71 41 - 48 67 108
E-Mail: f.sorge@usu-software.de

15.08.2008 Financial News transmitted by DGAP

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
Internet: www.usu-software.de
ISIN: DE000A0BVU28, DE000A0LR4U4, DE000A0LR7V2
WKN: A0BVU2, A0LR4U,A0LR7V
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, München, Hamburg, Düsseldorf

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