USU Software AG — Earnings Release 2014

Aug 21, 2014

News Details

Corporate | 21 August 2014 09:59

USU Software AG: Strong international business leads to significant growth in sales and earnings – international share of 28% in Q2 2014

DGAP-News: USU Software AG / Key word(s): Quarter Results/Half Year
Results

21.08.2014 / 09:59

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* Organic sales increase of 16% in Q2 2014 as against previous year
* Share of total sales generated outside Germany reaches 28% in Q2 2014
* License income up 47% as against Q2 2013
* Adjusted EBIT at seven times previous year's level in quarter under
review
* Figures for first half of 2014 fully on target
* Sales and earnings planning confirmed

Möglingen, August 21, 2014 - USU Software AG (ISIN DE000A0BVU28)
successfully continued the positive trend of the previous quarters in the
second quarter of 2014. With consolidated sales under IFRS of EUR 14,293
thousand (Q2 2013: EUR 12,301 thousand), the Company and its subsidiaries
(also referred to hereinafter as "USU" or the "USU Group") generated an
organic increase in sales of 16.2% compared to the previous year. This was
chiefly attributable to the significant expansion of international
business. The USU Group thus increased sales generated outside Germany from
EUR 1,453 thousand in the previous year to EUR 4,014 thousand in the
quarter under review, corresponding to growth of 176.3%. The share of total
sales generated outside Germany accordingly climbed to 28.1% in the second
quarter of 2014 (Q2 2013: 11.8%). This was also accompanied by a
substantial increase in high-margin license income, which rose by 46.7% to
EUR 2,250 thousand (Q2 2013: EUR 1,534 thousand). As a result of this
business growth, USU increased its adjusted earnings before interest and
taxes (adjusted EBIT) to EUR 1,511 thousand in Q2 2014 (Q2 2013: EUR 216
thousand), seven times as high as the previous year's level. USU increased
its adjusted consolidated earnings from EUR 29 thousand in the same quarter
of the previous year to EUR 1,422 thousand. Adjusted earnings per share
therefore improved to EUR 0.13 (Q2 2013: EUR 0.00).
On an unadjusted basis, USU generated a 328.9% rise in earnings before
interest, taxes, depreciation and amortization (EBITDA) to EUR 1,707
thousand in the quarter under review (Q2 2013: EUR 398 thousand). USU
improved its earnings before interest and taxes (EBIT) from EUR 32 thousand
in the second quarter of 2013 to EUR 1,151 thousand at present.
The USU Group's consolidated net profit calculated in accordance with IFRS
totaled EUR 1,040 thousand in Q2 2014 after a net loss of EUR 136 thousand
in the same quarter of the previous year. This corresponds to earnings per
share of EUR 0.10 (Q2 2013: EUR -0.01).

In the first half of the year, the USU Group generated a sales increase of
12.0% year-on-year to EUR 27,607 thousand (Q1-Q2 2013: EUR 24,644
thousand). In addition to strong international business, USU also benefited
from sales of the new product innovations. Software license income
consequently rose by an above-average 30.5% in the first half of 2014
compared to the first six months of 2013 to EUR 4,142 thousand (Q1-Q2 2013:
EUR 3,175 thousand). USU also increased its consulting sales by 14.1% to
EUR 16,572 thousand (Q1-Q2 2013: EUR 14,526 thousand), while maintenance
business grew 3.9% to EUR 6,370 thousand (Q1-Q2 2013: EUR 6,131 thousand).
Broken down by segment, Product Business contributed a total of EUR 20,764
thousand (Q1-Q2 2013: EUR 18,085 thousand) to consolidated sales in the
first six months of the 2014 fiscal year, corresponding to a year-on-year
increase of 14.8%. Consulting sales in the Service Business segment also
increased slightly by 3.5% to EUR 6,755 thousand (Q1-Q2 2013: EUR 6,525
thousand) as a result of obtaining several new customer projects. Sales not
allocated to the segments totaled EUR 88 thousand in the months from
January to June 2014 (Q1-Q2 2013: EUR 34 thousand).

Broken down by region, the USU Group's international business performed
particularly well in the period under review. Here, USU benefited in
particular from several major orders from leading Fortune 100 companies in
the oil, telecommunications and insurance sectors that were obtained by the
US subsidiary Aspera Technologies. As a result, the USU Group doubled its
international sales year-on-year to EUR 6,778 thousand in the period under
review (Q1-Q2 2013: EUR 3,191 thousand).

As a result of the significant expansion of high-margin license business
and a comparatively moderate development of costs, the USU Group as a whole
achieved a disproportionately high increase in profitability in the first
six months of 2014. Adjusted EBIT accordingly increased significantly to
EUR 1,984 thousand in the first half of 2014 (Q1-Q2 2013: EUR 238
thousand). USU also generated substantial growth in adjusted consolidated
earnings to EUR 1,733 thousand (Q1-Q2 2013: EUR -42 thousand),
corresponding to adjusted earnings per share of EUR 0.16 (Q1-Q2 2013: EUR
0.00). Not including acquisition-related adjustments, USU increased its
EBITDA by 487.3% year-on-year to EUR 2,349 thousand in the period under
review (Q1-Q2 2013: EUR 400 thousand). Including depreciation and
amortization expense of EUR 1,101 thousand (Q1-Q2 2013: EUR 717 thousand),
EBIT amounted to EUR 1,248 thousand (Q1-Q2 2013: EUR -317 thousand). USU
increased its consolidated net profit from EUR -570 thousand in the
previous year to EUR 958 thousand in the first half of 2014, corresponding
to earnings per share of EUR 0.09 (Q1-Q2 2013: EUR -0.05).

As a result of the increase in profits, the USU Group's liquidity rose
slightly to EUR 14,259 thousand as of June 30, 2014 (December 31, 2013: EUR
14,231 thousand) despite the dividend distribution of EUR 2,631 thousand.
With an equity ratio of 64.9% as of the end of the period under review
(December 31, 2013: 65.4%), the USU Group is therefore still on a very
sound financial footing.

Following the positive business performance in the first half of 2014, the
Management Board confirms the planning for the USU Group, which anticipates
an increase in sales to EUR 63 - 65 million (2013: EUR 55.7 million) for
the current fiscal year. Adjusted EBIT is expected to rise to EUR 8 - 8.5
million (2013: EUR 5.1 million) throughout the Group. At the same time, the
Management Board confirms the medium-term planning, which predicts that the
EUR 100 million sales threshold will be exceeded by 2017 and that the
adjusted EBIT margin will rise to over 15%.

USU Software AG
The USU Group is the largest provider in Europe for IT and knowledge
management software. Market leaders from all sectors of the international
economy use USU applications to create transparency, enhance agility, save
costs and reduce their risks. In addition to USU AG, founded in 1977, USU
Software AG - which is listed in the Prime Standard of the German Stock
Exchange and in the GEX (ISIN DE000A0BVU28) - also includes the
subsidiaries Aspera GmbH, LeuTek GmbH, OMEGA Software GmbH, USU Consulting
GmbH and B.I.G. Social Media GmbH.

Contact:
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

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

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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

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