ATOSS Software AG still growing after three record years

Munich, March 12, 2009 – ATOSS Software AG today presented its results for 2008 and was able to report not only a third record year in succession but also continuing growth in the current year 2009. The Board of Management describes the present order situation as excellent and expects ATOSS to record further year on year growth in the first quarter in both software licensing orders and sales. The forecast for financial year 2009 is firming up – the Munich-based software company remains on track for record performance. As a result of this highly gratifying development in business, at the annual general meeting on April 30, 2009 the company will propose that shareholders receive a 40% higher dividend of EUR 0.44, representing a yield of around 6%.

 

2008 was the most successful year to date in the history of ATOSS Software AG, the specialist in workforce management. Sales were up 10% at almost EUR 27 million, while profits growth was substantially larger. The operating result (EBIT) was up 35% at over EUR 5 million, while earnings per share climbed 40% to EUR 0.88. ATOSS recorded an operating margin on sales of 19% (previous year 15%). 

As already reported by the company in an announcement on February 9, 2009, the generally high demand for ATOSS solutions has continued not just through the second half of 2008 but also in the current first quarter of 2009. The Board of Management views this steady order pattern as confirmation of the speed with which corporate investments in workforce management pay for themselves. Particularly in times of economic difficulty, this offers a competitive advantage of strategic value. The resulting clear improvement in service quality coupled with increased employee satisfaction yields clear productivity gains. In the retail sector in particular this has helped ATOSS to secure a large number of prominent customers.

Thanks to its substantial commitment to R&D, ATOSS is able to offer its customers a range of products and solutions based on the most advanced technologies that deliver major benefits. Expenditure on R&D in financial year 2008 was increased by a further 11% to EUR 5.1 million. As in the year before, the Munich-based company again invested 19% of sales revenues in ongoing product development.

In consideration of the development in earnings and the substantial cash flow of EUR 2.5 million recorded last year, and with EUR 14 million – equal to EUR 3.51 per share – in liquidity, ATOSS can well afford this financial cost. Once again in 2008 these liquid funds that make the company entirely independent of third-party lending were invested with an a emphasis on the preservation of value. The company’s financial strength is also underpinned by the continuing strong equity ratio of 64% (previous year: 59 %). ATOSS also recorded a new record return on equity which rose from 24% in the preceding year to 28%.

Since first announcing its dividend policy at the start of 2003, including the dividend planned for 2008, ATOSS will have distributed a total of EUR 9.56 per share. And considering the movement in the share price over this period, the stock has generally remained highly stable. Given that the dividend payments have been largely tax-free, shareholders have achieved a very respectable return. Despite this stability, however, the Board of Management believes that the company is valued at a very low level relative to the sharply upward trend in profits, as the good figures have not been rewarded by the stock markets. The ratio of enterprise value to expected operating profits during the second half of last year was generally between two and three. For this reason the company purchased a total of 44,894 own shares in the fourth quarter at an average price of EUR 6.51.

With overall sales up 10% at more than EUR 26.9 million, ATOSS recorded substantial growth in consulting in financial year 2008 as revenues in this segment rose 19% to EUR 7.4 million. Software sales were up 9% at EUR 16 million. Under the heading of software, the licensing business grew by 12% to EUR 6.1 million, while maintenance was 8% higher at over EUR 9.9 million. However it was the new record levels of orders received and on hand for software licenses that will be decisive for the company’s continuing success. By December 31, 2008, orders received in this segment were up by 8% over the year before at EUR 6.6 million, while orders on hand had risen by 32% to stand at EUR 2.5 million.

ATOSS has consistently recorded strong development in its business since the end of 2005. During the period from 2006 to 2008 overall sales have been increased by 32%, with sales of software licenses up 52%, consulting sales up 48% and operating profits (EBIT) up by almost 800%.
  
The Board of Management regards the generally excellent order situation and the continuing growth in the current first quarter as confirmation of its already announced expectation that sales and profits in financial year 2009 should continue at last year’s record levels. The Board also anticipates that against the background of the expected consolidation in the competitive environment, ATOSS will increase its share of the market.

April 23, 2009 Press release announcing the 3-monthly statements
April 30, 2009 Annual General Meeting in Munich
May 4, 2009 Dividend distribution
May 15, 2009 Publication of the 3-monthly financial statements

ATOSS Software AG

Christof Leiber / Member of the Management Board

Am Moosfeld 3, D-81829 Munich

Tel.: +49 (0) 89 4 27 71 – 265

Fax: +49 (0) 89 4 27 71 – 100 

investor.relations@atoss.com