ATOSS Software AG reports record sales and earnings for the eighth successive year, outlook remains positive
Once again the core software business made a major contribution to the company’s consistent positive development in sales, accounting for a proportion of turnover that was one percentage point higher at 62 percent. Sales of software licenses, the driving force behind future sales revenues, were 8 percent higher at EUR 7.5 million (previous year: EUR 7.0 million), while software maintenance revenues climbed 9 percent to EUR 14.3 million (previous year: 13.2 million). In its consulting business, ATOSS saw sales rise by 3 percent to EUR 9.0 million (previous year: EUR 8.7 million), while hardware contributed EUR 3.4 million (previous year: EUR 2.7 million), representing 9 percent of overall revenues.
Very strong fourth quarter with sales of EUR 9.0 million
The fourth quarter of 2013 was particularly successful, yielding the highest quarterly sales in the company’s history at EUR 9.0 million (previous year: EUR 8.5 million). The order situation also remains positive. Orders received for software licenses at EUR 2.1 million were somewhat below the previous year's record of EUR 2.7 million, but still came in at a very high level. The same applies to orders on hand which stood at EUR 3.5 million as of December 31, 2013 (previous year: EUR 3.8 million).
2013 brings double-digit growth in operating profits, 24 percent margin underscores profitability
In the past financial year, ATOSS once again demonstrated its considerable profitability. Spending on research & development as well as sales and marketing was further increased as planned. Nevertheless the operating profit (EBIT) in the reporting period rose by 11 percent to EUR 8.4 million (previous year: EUR 7.6 million). Meanwhile, the EBIT margin reached 24 percent, higher even than the excellent level of the previous year. On the other hand, due to one-off effects resulting from the movement in the gold price, a negative development in financial earnings ensued. As a result, net income came in at EUR 3.0 million (previous year: EUR 5.8 million), with earnings per share of EUR 0.76 (previous year: EUR 1.45).
The Management Board intends to propose that in drafting its resolution on the appropriation of net income, the Supervisory Board recommends a dividend of EUR 0.72 per share. This represents a continuation of the distribution policy adopted by ATOSS more than a decade ago. At the end of April 2013, ATOSS paid a dividend of EUR 0.72 along with a special distribution of EUR 2.90 per share. The recommenda-tions for the appropriation of net income put forward by the Management and Supervisory Boards will be resolved upon at the annual general meeting on April 30, 2014.
A strong increase in cash flow from operations was recorded, which amounted to EUR 8.3 million as of December 31, 2013 (previous year: EUR 3.4 million). By contrast, liquidity slipped from EUR 25.4 million in the previous year to EUR 15.3 million as a result of the substantial EUR 14.4 million distribution to shareholders. Nevertheless with funds amounting to EUR 15.3 million, or EUR 3.83 (previous year: EUR 6.40) per share, ATOSS still has considerable liquidity at its disposal, one third of which on the closing date was invested in gold, with two thirds in sight deposits at banks.
Positive outlook for financial year 2014
The demand for workforce management solutions remains undiminished in almost all sectors, and in the view of the Management Board, the market as a whole continues to offer considerable potential. In an environment in which business models are changing rapidly and businesses themselves face increasing requirements, demand is growing as companies seek to improve productivity, enhance flexibility and reduce operating costs. Analysts therefore predict average annual growth rates in excess of 11 percent in the global market for workforce management through to 2015.
With solutions that are currently being used by some 4,500 customers with around 2.8 million employees in 31 countries, ATOSS is excellent positioned to exploit this strong potential. The growth prospects and proven robust business model that underpins ATOSS Software AG offer further support for the company’s future outlook. The Management Board therefore anticipates that the company’s record development will continue in the current financial year, with an EBIT margin remaining securely above 20 percent.
- 12.03.2014 Publication of the annual report for 2013
- 12.03.2014 Balance sheet press conference
- 17.04.2014 Press release announcing the 3-monthly statements
- 30.04.2014 Annual General Meeting
- 13.05.2014 Publication of the 3-monthly financial statements
- 22.07.2014 Press release announcing the 6-monthly statements
- 12.08.2014 Publication of the 6-monthly financial statements
- 21.10.2014 Press release announcing the 9-monthly statements
- 14.11.2014 Publication of the 9-monthly financial statements
- 24.-26.11.2014 German Equity Capital Forum, Frankfurt