ATOSS Software AG reports fourth record result in succession, outlook positive

Munich, March 12, 2010 – At today's press conference ATOSS Software AG will present the best sales and profit figures in the company‘s history. Since it was first established in 1987 the Munich software company has selectively established itself as a specialist in workforce management. The business was floated on the stock exchange almost exactly 10 years ago on March 21, 2000. In fiscal 2009, sales climbed 8 % to EUR 29.1 million with the operating result up 9 % at EUR 5.5 million. Shareholders are due to participate in the company’s success with a dividend up 14% at EUR 0.50. In view of the strong order book and the number of new customers showing no sign of abating, the Management Board remains optimistic for the current year.

 

ATOSS recently announced that after an intensive two-year selection process, European perfumery market leader Douglas has opted for the ATOSS Retail Solution. Two further prominent clients in the retail sector have also been acquired in the current first quarter of 2010. ATOSS is enjoying highly successful business in the retail sector in particular, but demand also remains strong in services and health care.

In its 2009 financial year, in the midst of a deep recession, ATOSS nevertheless succeeded in surpassing its very strong performance in 2008. With a further increase in sales that greatly outstripped the rise in costs, all of the key operating parameters again showed an improvement. For the first time the company booked sales of more than EUR 7 million in each of the four quarters. The overall margin on sales based on EBIT came in at 19%. Earnings per share amounted to EUR 1.00, up from EUR 0.88 in the year before.The positive trend in business was also reflected in liquidity, which rose 38% to EUR 19.3 million, while cash flow trebled to reach EUR 7.6 million. ATOSS scores highly with figures such as these which represent decisive criteria in the eyes of major customers – not to mention the continuing strong equity ratio of 57% (previous year 64%) despite the increasing size of the company’s balance sheet.

The low level of outstanding accounts, short times to payment and negligible revaluation allowances are proof of the close relationship of trust between ATOSS and its customers. The allowances remained for the reporting period with EUR 16,000 on the extremely low level of last year (EUR 11,000) and are minimal in relation to a balance sheet total of EUR 25.7 million and sales of EUR 29.1 million.The company‘s extremely sound capital base not only affords ATOSS effective protection against economic and other risks. Customers too can be assured that ongoing technological development will continue at a level well above the norm. While the level of investment in general declined in 2009, ATOSS increased its research and development spending to a new record of EUR 5.6 million.

The company’s business success has been rewarded by the capital markets as the price of ATOSS stock rose 68% in the course of the year, far outpacing the comparative indices. The price peaked at the end of October at EUR 13.80, holding at EUR 12.15 at the year-end. There was also a highly positive development in the liquidity of the stock. Sales via the Xetra electronic trading platform alone increased by almost 70%. The Management Board sees the current trend in the stock price as a cause for satisfaction. ATOSS stock continues to climb while the benchmarks have latterly trended sidwards. The company’s high level of liquidity and the dividend yield are regarded as providing strong support for the stock price, along with the continuing positive assessment of important parameters such as the price/earnings (P/E) ratio and the ratio of operating profit to enterprise value.

 

Another distinguishing feature of ATOSS is the continuity of its dividend policy. As in preceding years, the Management and Supervisory Boards will propose to the AGM at the end of April that half the earnings per share should be distributed as a dividend. This represents a payout of EUR 0.50 per share (previous year EUR 0.44), equal to a dividend yield of currently around 4%. With the inclusion of this amount, since first formulating its dividend strategy in 2003, ATOSS will have distributed EUR 10.10 per share to its shareholders.

ATOSS began the new 2010 financial years with orders worth EUR 3.3 million (previous year: EUR 2.5 million) on hand for software licenses and some positive news on the sale front. Despite the general economic uncertainty the Management Board is therefore optimistic and expects to see a continuation of last year‘s record results. Clearly distinguished as it is at the level of products and technology, financial stability and sustainability and with first-class references in all relevant markets, the company enjoys an ideal position. Intelligent personnel deployment is a decisive competitive factor and therefore central to the ability of today’s businesses to face the future both in Germany and abroad. ATOSS solutions are already in use in 23 countries. Successful cooperation with international clients will in future be of increasing significance.

26.04.2010  Press release announcing the 3-monthly statements

30.04.2010  Annual general meeting in Munich

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