Press Release
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Despite a difficult market environment, Beta Systems achieves outstanding sales success in
all its business segments
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Revenues from software licenses rose significantly by 42.8% in the second quarter of 2008
(at the end of six months, by 12.6%)
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Total revenues climbed 7.7% in the second quarter of 2008
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Earnings before interest and tax (EBIT), earnings before interest, tax, depreciation and
amortization (EBITDA) and earnings before tax (EBT) improved considerably
- Growth forecast for the year as a whole affirmed
Berlin, July 31, 2008 – After a successful initial quarter in 2008, Beta Systems
Software AG (BSS, ISIN DE0005224406) had achieved significant improvements in revenues and profit
by the end of six months as well. Accordingly, the company recorded major sales successes in all
three segments, raising its high-margin sales of software licenses by 42,8% in the second quarter
and, at the end of the first six months of 2008, by 12.6%. In this process, the Berlin-based
software supplier acquired customers first and foremost from the banking and insurance sectors.
From the standpoint of the company, this is a very gratifying trend as its sales success was
achieved against the backdrop of a cooling economy dampened by the global crisis still persisting
in the international capital and financial markets.
The most important successes included the signing of a contract with one of Europe's largest
IT providers which is now to use products from Beta Systems’ DCI portfolio throughout Europe. In
the IdM segment, contracts with one of the world’s largest airlines and a major European bank were
renewed, with the result that a long-standing customer relationship was deepened and the existing
installation basis of the respective customer was strengthened. In the ECM segment, a long-term,
large-volume contract was signed with one of Germany's most important service providers in the
payments business. This contract in the ECM segment is, at the same time, the largest single
contract signed in the history of the company. With a total volume of several million euros, it has
boosted orders in hand significantly and forms an important basis for achieving the other targets
set for the fiscal year 2008. The first contracts signed for the new Agilizer product solutions
(including automated monitoring of compliance in large corporations) also further the achieving of
the annual targets.
At the end of the first six months of 2008, total revenues had edged up to € 42.5 million
(Q1-Q2/2007: € 41.9 million). Revenues in the services segment contributed € 6.9 million
(Q1-Q2/2007: € 7.6 million) and maintenance revenues posted € 19.7 million (Q1-Q2/2007: € 21.3
million) over the same period. Revenues from scanner hardware climbed to € 3.2 million (Q1-Q2/2007:
€ 1.7 million). As before, Beta Systems is concentrating on business with software licenses and
services. It nonetheless continues to realize profitable revenue from scanner hardware in new
systems as part of customer-oriented total solutions for hard- and software (above all, in the
banking sector).
At the end of six months, EBIT had improved to € 0.6 Mio. (Q1-Q2/2007: € 0.4 million) and
EBITDA to € 2.6 million (Q1-Q2/2007: € 2.2 million). Particularly pleasing was EBT which rose to €
0.8 million (Q1-Q2/2007: € 0.1 million). The result for the business period, which came to € 0.3
million, was also clearly positive (Q1-Q2/2007: € 0.0 million). At the end of six months, the costs
of revenues had fallen 8.1% to € 18.7 million, down from € 20.3 million and, as a result, gross
profit rose 10.7%, from € 21.6 million to € 23.9 million. The cash flow from operating activities
increased by 38.3% to € 7.3 million in tandem with the improved cost and profit situation
(Q1-Q2/2007: € 5.3 million).
Key Financial Data for the first six Months of 2008 at a Glance
- Software license revenues advance significantly by 12.6% to € 12.8 million (Q1-Q2/2007: € 11.3
million)
- Total revenues rise by 1.6% to post € 42.5 million (Q1-Q2/2007: € 41.9 million)
- EBIT improves to € 0.6 Mio. (Q1-Q2/2007: € 0.4 million), EBITDA to € 2.6 million (Q1-Q2/2007: €
2.2 million) and EBT to € 0.8 million (Q1-Q2/2007: € 0.1 million)
- The cash flow from operating activities climbs by 38.3% to € 7.3 million (Q1-Q2/2007: € 5.3
million)
- Maintenance revenues fall in line with expectations to € 19.7 million (Q1-Q2/2007: € 21.3
million) owing to the decline in low-margin hardware maintenance contracts
- Services revenues rise to € 6.9 million (Q1-Q2/2007: € 7.6 million)
Key Financial Data for Q2/2008 at a Glance
- Software license revenues soar 42.8% to € 7.7 million (Q2/2007: € 5.4 million)
- Total revenues climb by 7.7% to € 22.5 million (Q2/2007: € 20.9 million)
- EBIT improves marginally to € 1.2 million (Q2/2007: € 1.1 million)
- Maintenance revenues fall in line with expectations to € 9.6 million (Q2/2007: € 11.0 million)
owing to the decline in low-margin hardware maintenance contracts
- Services revenues rise to € 3.9 million (Q2/2007: € 4.0 million)
Statement by the Chief Executive Officer
Kamyar Niroumand, CEO of Beta Systems Software AG, commented as follows: “After a
good start to fiscal 2008, we have achieved important sales successes in all three of our business
segments despite the tense situation in the financial sector. This is all the more remarkable if
one considers the current cooling of the economy. I am particularly happy about the first contracts
signed for the new Agilizer products which we recorded only a few months after having presented our
new solutions to the market. Based on these outstanding sales successes and our high-margin
business with software licenses, we are convinced that we are still on the right track towards
achieving our ambitious targets for the EBIT margin and revenue growth in fiscal 2008 and herewith
affirm our positive outlook for the year.”
Gernot Sagl, Chief Financial Officer of Beta Systems Software AG, added the following: “The
sales successes in the first half of 2008 have had a very positive impact on profit. Being
profitable two years in a row as early as at the end of the first half-year is not something one
can take for granted in the case of an IT software company but this is what Beta Systems has done.
Our extremely sound financial position and our positive interest income meant that we were able to
raise EBT to almost € 1 million.”
Outlook for the Fiscal Year 2008
At the end of the first six months of 2008, the Management Board retains its
forecast, drawn up at the start of the year, for the current fiscal year and has planned for an
EBIT margin in the upper single digit range and a double digit EBITDA margin with a slight growth
in sales. The prerequisite for this is that all three of our business segments are profitable. The
Management Board assumes that the goals of sustained profit improvement through the concentration
on business with software licenses and services, the building up of customer relationships, above
all in the financial services sector and industry at large, the expansion of the global partner
business and the ongoing implementation of the Beta 4Agility product and sales strategy will be
achieved.
The full Half-yearly Financial Report 2008 will be published on August 6, 2008.
End of the press release
Beta Systems Software AG – Agility Integrated
Beta Systems Software AG Berlin (Prime Standard: BSS, ISIN DE0005224406) develops
high-profile software products and solutions for the secure and efficient processing of large data
volumes. The core businesses of Beta Systems are document processing as well as IT user management
data processing in data centers and compliance solutions. In addition, the Beta 4Agility suite
offers large companies new integration products to enhance their agility in IT and business
processes. These products serve to simplify the automation of data and document processing and
enhance the security and performance of IT.
Beta Systems was founded in 1983, has been a listed company since 1997, and has a workforce
of more than 600 employees. The company’s principal place of business is Berlin. Beta Systems
operates through Centers of Competence in Augsburg, Cologne and Calgary, as well as 18 subsidiaries
worldwide and cooperations with numerous partner companies. With more than 3,000 running
installations, it has a customer base of more than 1,300 major companies from the sectors of
financial services and IT service providers and industry at large in Germany, Europe and the USA.
More information on the company and its products can be found under
www.betasystems.com.
Company contact:
Beta Systems Software AG
Stefanie Frey
Tel.: +49 (0)30 726 118-171
Fax: +49 (0)30 726 118-800
e-mail: stefanie.frey@betasystems.com
Agency contact:
HBI PR&MarCom GmbH
Alexandra Osmani, Alexandra Janetzko
Tel.: +49 (0)89 99 38 87-0
Fax: +49 (0)89 930 24 45
e-mail: alexandra_osmani@hbi.de; Alexandra_Janetzko@hbi.de
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