USU Software AG — Earnings Release 2013

Nov 5, 2013

News Details

Ad-hoc | 5 November 2013 15:53

USU Software AG: USU grows by 15% in Q3 2013 / Extraordinary expenses from first half of year not yet offset / Target for 2013 adjusted / 2017 medium-term target reiterated by Management Board

USU Software AG / Key word(s): Change in Forecast/Preliminary Results

05.11.2013 15:53

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

---

USU Software AG (ISIN DE000A0BVU28) has again generated a double-digit
sales increase in the third quarter of 2013, according to provisional
calculations. According to the latest projections, consolidated sales
(IFRS) will amount to EUR 13.8 million (Q3 2012: EUR 12.0 million),
corresponding to an increase in sales by the Group as a whole of 15% as
against the same quarter of the previous year. In the reporting quarter,
USU benefitted above all from strong license business, with positive sales
contributions generated by the organic business of the existing product
areas in addition to BIG Social Media GmbH, which was acquired at the start
of the year, and the US partner CA Technologies. While service business,
which is not dependent on specific products, completed further projects
following the end of several major projects, it did not match the level of
the previous year's sales. The Management Board is anticipating sustainable
growth in this area again from 2014. In terms of earnings, USU once more
generated an operating profit according to provisional business figures,
but fell short of the previous year's figure on account of targeted
recruitment activities and strategic investments in the development of new
software products. Taking into account the extraordinary effects due to
acquisitions, adjusted EBIT for Q3 2013 amounted to EUR 1.1 million (Q3
2012: EUR 1.6 million) and was therefore almost a third below the figure
for the previous year.

According to projections, USU's consolidated sales climbed by 4% in the
first nine months to EUR 38.4 million (Q1-Q3 2012: EUR 36.9 million). While
Product Business added 13% in the first three quarters of 2013 to EUR 28.5
million (Q1-Q3 2012: EUR 25.1 million), Service Business declined by 16% to
EUR 9.9 million (Q1-Q3 2012: EUR 11.8 million) in the period under review.
At EUR 1.3 million, adjusted EBIT was down EUR 3.2 million on the previous
year's level in the first nine months of 2013 (Q1-Q3 2012: EUR 4.5
million). This was largely as a result of the weaker development in Service
Business (EUR -0,8 million), selective investment in product innovations
(EUR -1,5 million), the significant expansion of the global workforce (EUR
-0,2 million) and the later than anticipated recognition of sales from the
CA partnership (EUR -0,5 million). While USU increased its operating
earnings as against the previous quarters in Q3 2013, this did not offset
the extraordinary expenses of the first half of the year.

Irrespective of the substantial growth in business expected for the final
quarter of 2013, this means that the company must adjust its forecast for
2013 as a whole. Owing to the declines in Service Business recorded in the
reporting year, the sales guidance is being adjusted from previously EUR 58
million to now at least EUR 56 million (2012: EUR 51.2 million), which
still corresponds to sales growth of around 10% generated exclusively by
Product Business. At the same time, adjusted EBIT is expected to amount to
more than EUR 5 million (2012: EUR 7.1 million), lower than both the
originally planned figure of EUR 8 million and the previous year's level on
account of the extraordinary issues referred to above. Nonetheless, the
additional investments will result in a significant growth surge in 2014
and a sustainably positive business performance, with the result that the
Management Board is reiterating its medium-term planning of consolidated
sales of more than EUR 100 million by 2017 combined with a higher operating
earnings margin.

Contact:
USU Software AG
Investor Relations
Falk Sorge
Spitalhof
D-71696 Möglingen
Tel.: +49 (0) 71 41 - 48 67 351
Fax: +49 (0) 71 41 - 48 67 108
E-Mail: f.sorge@usu-software.de

USU Software AG
Corporate Communications
Dr. Thomas Gerick
Tel.: +49 (0) 71 41 - 48 67 440
Fax: +49 (0) 71 41 - 48 67 909
E-Mail: t.gerick@usu-software.de

---

Information and Explaination of the Issuer to this News:

The company will publish its final figures for Q3 2013 and the first nine
months of 2013 on November 11, 2013 as part of its presentation at the 2013
German Equity Forum in Frankfurt/Main.

05.11.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: USU Software AG
Spitalhof
71696 Möglingen
Germany
Phone: +49 (0)7141 4867-0
Fax: +49 (0)7141 4867-200
E-mail: info@usu-software.de
Internet: www.usu-software.de
ISIN: DE000A0BVU28
WKN: A0BVU2
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

---