Pironet NDH AG: Turnaround for PIRONET NDH

Pironet NDH AG / Release of an announcement according to Article 37x of
the WpHG [the German Securities Trading Act]

17.05.2010 10:28

Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Cologne, 17 May 2010 - Following the severe slump of the financial market
crisis, the process of recovery that set in last year has continued, with
the exception of highly sensitive sectors. Whereas Germany, as a leading
export nation, was hit harder by the recession than other countries,
economic development is now more positive, with the labour market in
remarkably good condition, meaning that there have been no mixed feelings
on the part of the consumer. The new year also started well for the IT
sector, and the chances are that this trend will continue. For example,
according to a forecast by BITKOM (the Federal Association for Information
Technology, Telecommunications and New Media), software sales in Germany
should increase by just under 1% in 2010, and IT services by a good 2%.

PIRONET NDH also had a good start to the year. The specialist in digital
content and data management achieved a record turnover for the first three
months of the financial year, reaching EUR 15.9 million, some 5% above the
previous year (EUR 15.2 million). The section with the strongest growth was
Master Data Management, up 38% to EUR 4.0 million. ICT Outsourcing remained
the section with by far the highest turnover, with EUR 5.4 million (+4%).
At circa EUR 0.1 million, the EBIT was at the same level as the previous
year, though there was a considerable increase in profitability: during the
same quarter last year, provisions were written back (EUR 0.2 million).
Furthermore, work performed by the entity and capitalised fell to EUR 0.9
million in the first quarter of 2010 (previous year: EUR 1.7 million).
Financial results improved from EUR -0.2 million to EUR 0.02 million,
meaning that, below the line, an EBT of EUR 0.1 million was achieved
against EUR -0.1 million.

There were considerable cuts in investment as part of the savings package.
Compared with EUR 4.7 million the previous year, EUR 1.5 million were now
on the books. This meant that a free cash flow was generated again for the
first time in 6 quarters. Liquid assets rose by EUR 0.3 million compared
with the end of 2009, to EUR 12.3 million. This sum corresponds to net
liquid assets, as PIRONET NDH continues to work without bank loans. Per
share, this makes EUR 0.84.
 
Compared with the disappointing previous year, in 2010 PIRONET NDH is back
on target. At the current level of turnover, the company is just above the
breakeven point. This means business now needs a boost, especially in the
software sector. This would set the scene for creating stronger yields and
further raising the cash balance.

The management board

About Pironet NDH
PIRONET NDH AG offers the market a unique portfolio of solutions for
handling digital content and data. This includes consultancy, software,
integration and outsourcing services. PIRONET NDH AG is a corporate group
that brings together five companies specializing in the five different
business areas ICT outsourcing, consulting and design, content management
solutions as well as IT-solutions for the industries retail / CPG and
financial services. PIRONET NDH AG was founded in 1995 and is based in
Cologne. Since 2000, it has been listed on the German stock exchange. The
Group of companies employs more than 500 people working in 20 different
countries and posted sales figures of around 60 million euros in the last
financial year (2009).
For further information, please visit: www.pironet-ndh.com



17.05.2010 Ad hoc announcement, Financial News and Media Release
distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Pironet NDH AG
              Von-der-Wettern Str. 27
              51149 Köln
              Deutschland
Internet:     www.pironet-ndh.com
 
End of News                                     DGAP News-Service
 
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