ATOSS Software AG steps up the pace of growth

Munich, April 23, 2009 – ATOSS Software AG, the specialist in workforce management, has once again achieved record operating results and underpinned its positive future outlook with orders on hand at a new high. Sales in the first quarter of 2009 were up 11% at EUR 7.1 million, with software licensing actually rising 21% to EUR 1.6 million. On this foundation the operating result (EBIT) climbed 16% to EUR 1.5 million, with earnings per share up 59% at EUR 0.27 per share. ATOSS has now maintained a sustained pattern of growth since the fourth quarter of 2005. With orders on hand for software licenses rising from EUR 1.5 million last year to a new high of EUR 3.7 million, the Management Board remains optimistic for the coming quarters.

 

Once again the software licensing business proved to be the driving force behind the company’s highly positive development. As of

December 31, 2008, ATOSS had already reported a record EUR 2.5 million in orders on hand and the Management Board was confident that business in financial year 2009 would follow a positive course. Now, with sales of more than EUR 7.1 million in the first quarter, ATOSS has just achieved the highest figure for a single quarter in the company’s history. Software licensing revenues were up 21% at approx. EUR 1.6 million, while maintenance sales were up 8% at more than EUR 2.6 million and consulting was up 13% at EUR 2.0 million.

Despite the positive effect of a one-off EUR 0.3 million contribution to income in the same period last year, the operating result (EBIT) in the first quarter this year was up 16% at EUR 1.5 million. The margin on sales accordingly increased to 21%. Other key figures improved even more substantially: Earnings before taxes (EBT) were up 60% at EUR 1.6 million, net income was up 58% at EUR 1.1 million, and earnings per share increased by 59% to EUR 0.27.

As a result of the powerful development in business, ATOSS recorded a positive operating cash flow amounting to EUR 2.8 million in the first quarter (previous year EUR 3.0 million) and increased its liquidity by 2% to EUR 16.7 million. This equates to liquidity of EUR 4.22 per share, compared with EUR 4.10 last year. This substantial volume of liquid funds continues to be invested with an emphasis on the preservation of value, in order to allow ATOSS to remain independent of external capital and guarantee security in a difficult economic environment. The earnings power and solidity of ATOSS are evident from the development in the equity ratio which has risen from 53% last year to 58% as of March 31, 2009.

The positive effects of the typically high investments made by ATOSS in its research and development continue to be felt. In financial year 2008 the company invested EUR 5.1 million in developing its workforce management solutions, equivalent to 19% of sales revenues, and this high level of investment was continued in the first quarter of 2009.

The fact that ATOSS is winning as many orders from new customers as from established clients confirms the soundness and viability of its strategy. Despite the recession, overall demand has increased markedly in the first quarter of the current financial year. Clearly, the ATOSS message is being heard. Particularly in the current negative economic climate, workforce management is becoming increasingly significant, given the rapidity with which the investment is reflected in service quality, employee motivation and productivity gains. 

The continuing strong interest from customers in a variety of sectors is clearly evident from a comparison of orders on hand for the first quarters of 2006 through 2009. This important indicator of future development rose from EUR 0.6 million in 2006, via EUR 1.3 million in 2007 and EUR 1.5 million last year to a current level of EUR 3.7 million. ATOSS now has a superb basis on which to build further growth and plan ahead with security.

With all of the key figures for the development in business remaining highly positive in both Q4 2008 and Q1 2009, the Management Board has consolidated its future outlook. The Management Board accordingly expects last year’s record figures for sales and results to be repeated in the current year. Provided that the current gratifying development in business continues, the Management Board considers its possible that its forecast may be revised upwards in the course of the current financial year.  

April 30, 2009 Annual General Meeting in Munich
May 4, 2009 Dividend distribution (proposed at EUR 0.44 per share)

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