ATOSS Software AG: ATOSS Software AG reports the best ever first quarter in the company's history, six successive record year within reach

Corporate News

ATOSS Software AG reports the best ever first quarter in the company's history, six successive record year within reach

Munich, 26.04.2011 - ATOSS Software AG has once again increased its sales and earnings, setting new records in the first three months of 2011. The strong upward trend in business now continues for a sixth year in succession. The specialist in workforce management achieved a 10% increase in sales, lifting turnover to EUR 7.8 million (previous year EUR 7.1 million), with a further substantial improvement in all key figures. The operating profit (EBIT) came in at EUR 1.9 million (previous year: EUR 1.7 million), with net earnings at EUR 1.3 million (previous year: EUR 1.2 million). In each case, this equates to an increase of 16%. With the first quarter of 2011 now behind it and the outlook remaining positive, a sixth record year in succession is now within reach for ATOSS Software AG.

In its core software business, the Munich-based company generated sales of EUR 4.6 million, up 5% on the EUR 4.4 million recorded in Q1 2010. After a year of consolidation in line with expectations, consulting sales also began to increase once more, rising 12% from EUR 1.9 million last year to EUR 2.1 million. In its non-core business, ATOSS recorded hardware sales of EUR 0.9 million (previous year EUR 0.5 million) and other sales revenues of EUR 0.3 million (previous year EUR 0.4 million).

Disproportionate increase in profitability
With sales up 10%, ATOSS Software AG once again succeeded in disproportionately increasing its profitability. This was evident both in the operating result of EUR 1.9 million (previous year: EUR 1.7 million), as well as in earnings before taxes (EBT) at EUR 2.0 million (previous year: EUR 1.7 million) and net income at EUR 1.3 million (previous year: EUR 1.2 million). The return on sales based on EBIT reached 25%, up from 23% last year. Earnings per share climbed to a new quarterly record of EUR 0.34, up 16% on last year's EUR 0.29.

The EBIT margin of 25% demonstrates just how firmly results have stabilized at a very high level, and underscores the development potential offered by the company's business model. ATOSS has also maintained its research & development expenditure during the first quarter at the same 20% level as last year. As previously announced, potential investments in the course of the year will be targeted at selectively developing the ATOSS business model and exploiting growth opportunities in selected sectors and markets.

Liquidity climbs to EUR 23.7 million, equity ratio stands at 59%
By the end of the first quarter of 2011 cash flow at EUR 3.1 million matched the previous year's very high level. As a result liquidity climbed a further 17% to EUR 23.7 million, equivalent to liquidity of EUR 5.96 per share (previous year: EUR 5.11). Despite the increase in the balance sheet total which by the end of the quarter had risen to EUR 32.0 million, thanks to the strong development in earnings the company still reports an excellent equity ratio of 59% (31.12.2010: 63%).

Investments in personnel help to consolidate future potential
ATOSS has invested strongly in developing its personnel capacities. At the end of the period under review, ATOSS Software AG employed a workforce of 253, up 7% on the total of 236 at the end of the first quarter of 2010. In order to further enhance the sustained future potential of its products and increase both the breadth and depth of its technical expertise, the company focused in particular on strengthening its development and consulting teams. As the improvement in the EBIT margin shows, these investments have in no way impaired the quality of earnings.

New customer acquisitions have a positive effect on orders
ATOSS Software AG has continued to successfully acquire new customers in the first quarter of 2011, among them the listed DIY stores chain Praktiker and premium fashion brand Tommy Hilfiger, as well as babywalz, Europe's leading specialist mail order company for the young family. Orders booked for software licenses as of March 31, 2011 amounted to EUR 2.0 million, compared with EUR 1.8 million in the year before, while orders on hand also increased substantially. At the end of the 1st quarter of 2011, ATOSS had orders on hand for software licenses valued at EUR 3.4 million, some 10% up on the comparative figure of EUR 3.1 million on December 31, 2010.

Sixth successive record year within reach
In terms of both sales and earnings, in the first quarter of 2011 ATOSS achieved the best results in its history in view of the highly positive development in business and the increased volume of orders on hand, it is now proportionately easier to reliably forecast the outcome for the current financial year. Notwithstanding the investments that are planned, the management expects moderate sales growth in 2011 with a secure EBIT margin of over 20%. A sixth successive record year is now within reach for ATOSS Software AG.

Upcoming dates:
03.05.2011 Annual general meeting in Munich
04.05.2011 Dividend distribution (proposed at EUR 0.60 per share)
16.05.2011 Publication of the report for Q1 2011
25.07.2011 Press release announcing the 6-monthly statements
15.08.2011 Publication of the 6-monthly financial statements
24.10.2011 Press release announcing the 9-monthly statements
14.11.2011 Publication of the 9-monthly financial statements

For further information visit: http://www.atoss.com

CONSOLIDATED OVERVIEW: Quarterly comparison

CONSOLIDATED OVERVIEW: Quarterly development

(1): Cash and marketable securities (2): Dividend of EUR 0.50 per share on 03.05.2010 (previous year EUR 0.44); (3): At the end of the quarter

Contact: ATOSS Software AG
Christof Leiber / Management Board
Am Moosfeld 3, D-81829 Munich
Tel.: +49 (0) 89 4 27 71 - 0
Fax: +49 (0) 89 4 27 71 - 100
investor.relations@atoss.com