ATOSS Software AG – Further strong improvement in earnings quality on record sales

Munich, April 26, 2010 – ATOSS Software AG, the specialist in workforce management, has achieved yet another improvement in earnings quality in the first quarter of 2010 with sales matching last year’s record level. The company continues to record growth in its core business of software licenses and software maintenance, while turnover in consulting was slightly below the record set in the previous year. With sales revenues of EUR 7.1 million, provisional figures show the operating profit (EBIT) up 9% at EUR 1.7 million with a margin on sales of 23% (previous year 21%).

ATOSS also recorded a substantial increase in cash flow, which was up 12% over the previous year at EUR 3.1 million, while liquidity climbed 21% to EUR 20.2 million.

 

Despite the continuing difficult environment in the first quarter of 2010, ATOSS successfully matched the previous year’s record with sales coming in at EUR 7.1 million. Software sales were up 4% at EUR 4.4 million. In fact software licenses and software maintenance collectively accounted for 61% of Group sales (previous year 59%). By comparison, the strong growth in consulting seen in previous years has eased, with sales slipping 5% to EUR 1.9 million. In its non-core business, ATOSS recorded hardware sales of EUR 0.5 million (previous year EUR 0.6 million) and other sales revenues of EUR 0.4 million (previous year EUR 0.4 million).

ATOSS again succeeded in acquiring some additional prominent clients in the first quarter, particularly in the retail sector. Orders received for software licenses amounted to EUR 1.8 million (previous year EUR 2.8 million), somewhat above the quarterly average of EUR 1.7 million in the record year 2009. At EUR 3.5 million the level of orders on hand for software licenses was maintained on a par with Q1 2009 (EUR 3.7 million). By long-term comparison these two significant figures are both in record territory and underscore the continuing stable business situation.

Despite the continuing recruitment of new staff to join the product development team, in the period between January and March 2010 ATOSS achieved an operating result (EBIT) up 9% at EUR 1.7 million with a new record EBIT margin of 23%. Earnings per share came in at EUR 0.29, compared with EUR 0.27 last year. This highly positive performance has also strengthened equity which rose from EUR 14.7 million on the closing date at the end of last year to EUR 15.9 million on March 31, 2010. With the balance sheet total also increased, the equity ratio remained unchanged at 57% (December 31, 2009: 57%).

ATOSS also reports outstanding cash flow and liquidity. First-quarter cash flow from operations advanced 12% over the year before to EUR 3.1 million, while liquidity was up 21% at EUR 20.2 million, equivalent to EUR 5.11 per share (previous year EUR 4.22). This puts cash flow at 44% of sales, and ATOSS has already recouped the purchase price of almost EUR 2.1 million paid out in early January for the acquisition of office premises near Düsseldorf.

The long-term investment-oriented strategy, which has enabled the company to record continuous growth since the end of 2005, continues to set the tone for development. ATOSS has successfully positioned itself as the technology leader in workforce management and has continued to grow even in the depths of a recession. For this reason expenditure on research and development in the current year 2010 will remain at the high level of 20% of sales.

With orders on hand valued at EUR 3.5 million, up by a further EUR 0.2 million compared with the closing date of December 31, 2009, ATOSS can plan ahead with confidence for the current second the third quarters. On the other hand, the Management Board does not expect to see any improvement in the general corporate appetite for investment in the coming quarters; on the contrary, security in terms of order intake is more likely to decline. With this in mind ATOSS is very satisfied with the results for the first quarter which confirm the company’s guidance. The Management Board continues to expect results in 2010 to be on last year’s record level.

 

Consolidated Overview

30.04.2010  Annual general meeting in Munich

03.05.2010  Dividend distribution (proposed at EUR 0.50 per share)

17.05.2010  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