Beta Systems announces results for Q1 2006

CORPORATE NEWS RELEASE

Beta Systems announces results for Q1 2006

Berlin, 10 May 2006 – Beta Systems Software AG (BSS, ISIN DE0005224406) has closed its first quarter financial results with significant growth in revenues.

Key financial figures for Q1 2006 show positive results for Beta Systems

  • Revenue grew by 10.2% to € 21.8 million (Q1 2006: € 19.8 million)

  • Non-recurring expenses of € 0.8 million for further cost streamlining due to the new corporate structure had an effect on the operating results

  • Operating results (from continuing business operations, inclusive of abovementioned non-recurring expenses) increased from € - 4.1 million to € - 3.6 million.

  • Net result of € -1.5 million € / € -0,17 per share (Q1 2005: € -2.1 million € / € -0.26 per share)

 

Revenue growth underlines successful restructuring
Kamyar Niroumand, Chairman of the Board of Beta Systems Software AG, stated: “Our quarterly results show that we have already achieved the first successes in the first quarter and that we are on the right path in our operational development. Revenue and results for the first quarter 2006 are above the previous year’s level and have even slightly exceeded our expectations. We see this as a positive signal that our new direction and corporate structure have delivered the correct formation for future, profitable growth. After the first few weeks I am convinced that the market-related strategies of the individual business areas of IdM, ECM and DCI still require fine-tuning in relation to their portfolio optimisation, sector focus and regional orientation. My objective is therefore to orient our company still further towards the needs of our numerous large-account customers and to concentrate our sales, marketing development activities on the requirements of these customers.

Mr Niroumand added: "At the same time we will quickly conclude the implementation of the optimisation opportunities identified at the beginning of the year and we will carry out the already announced cost adjustments so that our company can switch during the course of the year from restructuring mode to growth mode.“

 

Important Operating Results

  • Hungarian Postal Service moves to Beta Systems: New hardware and software components have enabled the Hungarian Postal Service to speed up and make the processing of their 1.2 million daily documents more efficient.

  • Further expansion of the partner business:  The start of the ’Partner Success' Programme underlines the high importance of the partner business 

  • Personnel changes in the Board and Supervisory Board: Kamyar Niroumand, became the new Chairman of the Board on April 1, 2006; William P. Schmidt will become Chairman of the Supervisory Board after the retirement of Harald J. Joos, Board member Dr. Oskar von Dungern will leave the company in the middle of the year.

  • Take over offer to the Beta Systems shareholders of Delta Beteiligungen AG completed: Offer phase ended with a voting rights proportion of Delta Beteiligungen of about 34%.

  • Scanner/Sorter production handed over to long-standing partner SIS SEAC ICR Systeme GmbH: Concentration on marketing, sales and service for the scanner/sorter hardware within the ECM solution business

 

Hotline for investors/analysts
For questions on the Q1 results 2006, please contact the Investor Relations Team on telephone number +49 30 726 118 -170 and -171 or by email on ir@betasystems.com.

The complete quarterly report is available on the internet at  www.betasystems.com.

 

End of the Release

 

Beta Systems Software AG, Berlin, Germany
Beta Systems Software AG (Deutsche Börse - Prime Standard: BSS) is a leading supplier of infrastructure software for en-terprise critical applications for the automation and protection of business processes. Beta Systems provides software in the following areas: Identity Management (IdM), Enterprise Content Management (ECM) and Data Centre Infrastructure (DCI). All solutions are able to process high-volumes of information and throughput. They secure business critical data and help achieve compliance by addressing regulatory requirements. The ECM product range includes scanners and sorters from Kleindienst - a brand owned by Beta Systems Software AG.

Beta Systems with headquarter in Berlin has been listed on the Deutsche Börse (German stock exchange) since 1997 and currently employs about 700 people. The company has 17 subsidiaries worldwide, as well as numerous business partners. Beta Systems’ worldwide customer base comprises more than 1,000 IT service providers and large organisations from the fields of finance and insurance, manufacturing, commerce, telecommunications, logistics and energy supply, along with public sector organisations. For further information please visit: www.betasystems.com

 

Contact Information

Company Contact:
Beta Systems Software AG
Arne Baßler
Corporate Communication
Tel.: +49 (0)30 726 118-170
Fax: +49 (0)30 726 118-881
E-mail: arne.bassler@betasystems.com

Agency Contact:
HBI PR&MarCom GmbH
Corinna Voss, Melanie Körner
Tel.: +49 (0)89 99 38 87-0
Fax: +49 (0)89 930 24 45
E-mail:corinna_voss@hbi.de; melanie_koerner@hbi.de