ATOSS Software AG presents new highs, remains on course for record performance

Munich, January 30, 2009 – As announced, ATOSS Software AG, the workforce management specialist, has continued to post a record performance in the fourth quarter. With turnover approaching EUR 27 million in financial year 2008, the company once again recorded an outstanding increase in profits that far outstripped the 10% rise in sales. The operating result (EBIT) was up 35% at over EUR 5 million, while earnings per share climbed 40% to EUR 0.88.

In fact, 2008 was by far the most successful financial year in the company’s history. Thanks to the stability generated by the company’s business model and the record level of orders on hand for software licenses, the Management Board is highly optimistic for the current year 2009. The strong development in business is expected to continue.

 

Despite the massive blow the crisis in the financial markets inflicted on the economy in the second half of the year, ATOSS Software AG continued to achieve further growth in both the third and fourth quarters of 2008. Demand was gratifyingly strong in the company’s core business areas of software and consulting, with particularly dynamic momentum evident in software licensing towards the year end.  

ATOSS recorded total sales up 10% at more than EUR 26.9 million, with consulting rising 19% to EUR 7.4 million and software climbing 9% to 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. ATOSS also set a new record in orders received for software licenses, which climbed 8% over the year to reach EUR 6.6 million. Orders on hand grew by an even more substantial 32% to stand at EUR 2.5 million.

All of the company’s key results far outstripped the development in sales during the reporting period. The operating profit (EBIT) of over EUR 5 million was up 35% on the year before, while net income and earnings per share were both 40% higher at EUR 3.5 million and EUR 0.88 respectively. With these figures, despite several increases in forecasts during the year, ATOSS has clearly exceeded analysts’ expectations.

 

The operating margin increased from 15% to 19% in financial year 2008, after hitting a peak of 21% in the second quarter. With the presentation of its results for 2008, ATOSS Software AG has now completed three record years in succession. This performance is also reflected in a long-term comparison of the company’s profit margins. Back in 2005, the quarterly margin on sales ranged between -3% and 14%. In 2006 the spread was between 11% and 14%, and in 2007 between 14% and 17%. In the medium term the Management Board aims to achieve a margin of over 20% on steadily increasing sales.

The company’s continuing success in the reporting period was reflected in its positive cash flow of EUR 2.5 million, which lifted liquidity to EUR 14 million, equal to EUR 3.51 per share (previous year EUR 3.39). These funds continue to be invested with extreme prudence as the company’s investment policy remains focused on the preservation of value. The company’s considerable financial strength is underpinned by the continuing strong equity ratio of 64 % (previous year: 59 %). ATOSS also set another new record in its history as the return on equity reached 28% compared with 24% in the year before.

Expenditure on research & development (R&D) was increased by a further 11% in 2008 to EUR 5.1 million. As in the year before, ATOSS again invested 19% of sales revenues in targeted product development. This substantial commitment to R&D enables the Munich-based company to offer its customers a range of workforce management products and solutions based on the latest technology that deliver major benefits. The value added is reflected not just in a marked improvement in service quality coupled with increased employee satisfaction: it also generates noticeable productivity gains.

Given the speed with which such business investments pay for themselves, the current economic climate only serves to substantially increase the significance of workforce management. The pattern of orders received from customers confirms the Management Board in this view. The Board believes the company is outstandingly well placed to participate in consolidation in the competitive environment and gain fresh market share. 

Given the excellent order situation, also in the fourth quarter, coupled with the high level of orders on hand, the Management Board anticipates that sales and results will continue at the same record level as last year.

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

12.03.2009 Publication of the consolidated annual financial statements for 2008

23.04.2009 Press release announcing the 3-monthly statements

30.04.2009 Annual General Meeting in Munich