USU Software AG — Earnings Release 2007

Mar 27, 2008

News Details

Corporate | 27 March 2008 09:59

USU Software AG: Final figures for the 2007 fiscal year

USU Software AG / Final Results/Development of Sales

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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Best result in the history of the company for USU

• Sales revenues increase by 19.7% to EUR 31 million
• EBITDA increases significantly by 50.3%
• Solid financing with equity ratio of 87.3%
• Dividend payment of EUR 0.15 per share proposed
• Sustained growth in sales and earnings planned

USU Software AG (ISIN DE000A0BVU28), an international provider of Business
Service and Knowledge Management, today published its definitive financial
figures for 2007. Compared with the previous year, USU Software AG and its
subsidiaries (hereinafter referred to as 'USU Group' or 'USU') increased
Group sales by 19.7% to EUR 31.0 million (2006: EUR 25.9 million). During
the reporting period, USU achieved an above-average increase in
profitability. For instance, operating earnings before interest, taxes,
depreciation and amortization (EBITDA) rose by 50.3% to EUR 3.5 million
(2006: EUR 2.3 million) – the best result in the history of the company.
Consolidated net profit for the year increased to EUR 4.5 million (2006:
EUR 2.1 million), which corresponds to double the figure for 2006. Earnings
per share also increased significantly in the reporting year to EUR 0.44
(2006: EUR 0.23). The Management Board and Supervisory Board of the company
will therefore propose to the Annual General Meeting on June 19, 2008 to
increase the dividend by 50% to EUR 0.15 (2006: EUR 0.10) for each entitled
share. For the coming 24 months, the Management Board forecasts sustained
growth for the Group which in terms of sales is expected to be above the
average for the relevant market segment. EBITDA is expected to experience
an above-average increase in line with planning.

Substantial increase in licensing and maintenance business
In the 2007 fiscal year, the USU Group generated a year-on-year increase in
Group-wide sales of almost 20% or EUR 5.1 million to EUR 31.0 million
(2006: EUR 25.9 million). This increase chiefly resulted from product
business which continues to be strong, combined with contributions from
LeuTek GmbH acquired at the end of 2006 and the subsidiaries USU AG and
OMEGA Software GmbH. License income in the reporting period increased by
23% to EUR 5.0 million (2006: EUR 4.1 million). As a positive consequence,
maintenance income in particular also increased substantially by almost
120% to EUR 6.4 million (2006: EUR 2.9 million).

Jump in profits leads to best net profit in the Company’s history
Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased during the reporting period by 50.3% to EUR 3.5 million (2006:
EUR 2.3 million). The main contribution to the best operating earnings
hitherto in the company’s history was made by the significant increase in
the licensing and maintenance income. Including total depreciation and
amortization of EUR 1.6 million (2006: EUR 1.3 million), the USU Group
recorded an improvement in earnings before interest and taxes (EBIT) of
91.4% to EUR 1.9 million (2006: EUR 1.0 million). Net financial income
during the reporting period amounted to EUR 0.4 million (2006: EUR 0.5
million). Earnings before taxes (EBT) thus increased to EUR 2.4 million
(2006: EUR 1.5 million).

In 2007, USU posted consolidated tax income of EUR 2.2 million (2006: EUR
0.6 million). This resulted primarily from the deferred tax liabilities
recognized as income in connection with the amortization of intangible
assets capitalized in the course of company acquisitions as well as
deferred tax assets included in net profits on the tax losses of USU
Software AG, which were recognized on the basis of the profit and loss
transfer agreement concluded with LeuTek.

In total, the Company increased its net profit in 2007 by 117.4% to EUR 4.5
million (2006: EUR 2.1 million). With the average number of shares in
circulation at 10,281,054 (PY: 9,127,081), USU also significantly increased
earnings per share from EUR 0.23 last year to EUR 0.44 in the 2007 fiscal
year. The Management Board and Supervisory Board of USU Software AG have
therefore decided to propose to the Annual General Meeting on June 19, 2008
to increase the dividend by 50% to EUR 0.15 for each entitled share. As a
result, the USU Software AG shareholders are expected to continue to
participate directly in the Company’s success.

Increase in cash and equity
The cash and cash equivalents of the USU Group increased from EUR 8.4
million as of December 31, 2006 to EUR 9.9 million at the end of the 2007
fiscal year. Equity amounted to EUR 46.5 million as of December 31, 2007
(2006: EUR 42.6 million). With a balance sheet total of EUR 53.3 million
(2006: EUR 52.8 million), the equity ratio was 87.3% (2006: 80.7%) at the
end of 2007. Cash flow from operating activities increased to EUR 2.9
million (2006: EUR 2.4 million), primarily due to the improvement in
operating earnings. The number of employees in the USU Group was 245 (2006:
233) at the end of the reporting period.

USU strives for sustained growth in sales and earnings
After the positive development of business in 2007, the Management Board of
USU Software AG expects sustained high growth in sales and earnings for the
coming 24 months. Sales are expected to be much higher than the average of
the relevant software and IT services market segments, for which the
Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
e.V. (BITKOM – German Association for Information Technology,
Telecommunications and New Media) expects growth rates of up to 6%. One
positive indicator for this is the level of orders on hand, which as of
December 31, 2007 increased year-on-year by 18.6% to EUR 13.0 million
(2006: EUR 10.9 million). The increase in EBITDA is expected to be
above-average compared with the increase in sales. As in 2006 and 2007, the
shareholders of USU Software AG are again expected to participate in the
Company’s operating success in the form of a dividend.
In addition to the service business, the driver for the positive
development is expected to be primarily the product business in the
Business Service and Knowledge Management growth markets. The basis for
this is represented by the established KnowledgeCenter and Valuemation
product lines. The latter has received very positive assessments by the
international market research companies ECP and Forrester. In addition to
strong domestic business, the international partner business is also
expected to be an important success factor in 2008 and 2009. USU has
recently concluded partnership agreements with the US company BDNA and
Analyst House, which is established in the Middle East, and also expects
income from these in the medium term.

USU – The Knowledge Business Company

USU Software AG 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 KnowledgeCenter. 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 (ISIN DE000A0BVU28) is listed in the Prime Standard of
the Frankfurt stock exchange.

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

USU Software 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-software.de

27.03.2008 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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