ATOSS Software AG – Strongest nine-months result in the company’s history, forecast raised

Munich, October 22, 2009 – ATOSS Software AG, the specialist in workforce management, continues to record the same sustained growth that it has maintained for more than three years, despite the recession. With provisional figures to September 30, 2009 showing sales of EUR 21.4 million (plus 7%) and an operating profit (EBIT) of EUR 4.4 million (plus 11%), ATOSS has once again achieved a new record.The software company also reports strong cash flow equivalent to 34% of sales. At EUR 19.2 million, liquidity is up by 24%. The Management Board expects this positive development to continue in the current fourth quarter and has raised its forecast accordingly. The operating result for financial year 2009 (EBIT) is now expected to increase to around EUR 5.4 million (previous year EUR 5.0 million).

ATOSS Software AG has been recording continuous growth since the end of 2005. The company‘s long-term business strategy aimed at firmly positioning ATOSS as the technological leader in workforce management continues to set the tone for future development. This strategy is founded on a consistently high level of expenditure on R&D.As a result, ATOSS is in a position to not only acquire prominent customers in times of economic prosperity, but also to increase its order book in the midst of a recession by 43% relative to the previous year, bringing orders on hand to over EUR 3.2 million.

In the software field ATOSS achieved growth of 5%, lifting sales to EUR 12.4 million, while turnover in consulting rose 11% to EUR 6.1 million. Orders booked for software licenses amounted to EUR 5.3 million, compared with EUR 4.7 million in the year before. In its non-core business, ATOSS recorded hardware sales of EUR 1.6 million (previous year EUR 2.1 million) and other sales revenues of EUR 1.2 million (previous year EUR 0.6 million).As a result, the Munich-based software company continues to enjoy considerable stability in its business model. Software accounted for a total of 58% of consolidated sales (licenses 21%, maintenance 37%), with consulting contributing 29%.

ATOSS recorded an operating profit (EBIT) of EUR 4.4 million to September 30, 2009 (previous year EUR 3.9 million), with the margin on sales slightly increased from 20% to 21%. Earnings before taxes amounted to EUR 4.6 million (previous year EUR 3.9 million) with a net result of EUR 3.1 million compared with EUR 2.7 million in the year before. Earnings per share came in at EUR 0.78 compared with last year’s EUR 0.67. Consequently, all key figures have improved disproportionately relative to sales.As a result of the continuing positive development in business, operating cash flow increased significantly from EUR 3.6 million to EUR 7.2 million. Liquidity as of September 30, 2009 stood at EUR 19.2 million (previous year EUR 15.4 million), equivalent to EUR 4.85 per share (previous year EUR 3.86).

As of September 30, 2009 ATOSS had allocated some EUR 4.1 million to research and development, representing 19% of sales. This equates to an increase of 11% over the year before.Andreas F.J. Obereder, the founder and CEO of ATOSS, explained that these investments have consciously been increased still further in the current year:  “We have in recent years made some enormous leaps forward in developing our products and as a result we are now in a position to demonstrate highly profitable growth and increase our market share. We are now seizing the opportunities which the crisis offers by specifically investing in expanding our competitive advantages with sustained effect.”

In the current financial year ATOSS has successfully acquired new customers in a wide variety of sectors including retail, airlines, medical and entertainment. Particularly in the recession, there is an increasing need for companies to become substantially more flexible in order to respond to sharp fluctuations in incoming orders and customer frequency. This explains why in areas such as workforce management, given adequately strong positioning, it is still possible to achieve growth despite the general decline in corporate budgets. The Management Board expects to see a continuation of this trend in the coming quarters.

Both the highly positive development in business and the strength of orders on hand for software licenses confirm the Management Board in its expectation that last year’s record figures will generally be exceeded in 2009. To date, the goal has been to at least match last year’s operating profit of EUR 5 million. The Management Board now anticipates that an operating profit of around EUR 5.4 million will be achieved. ATOSS Software AG is targeting its fourth record result in succession.

November 9, 2009 Analysts conference,

November 13, 2009 Publication of the 9-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