Press Release
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At the end of the first nine months of 2008, Beta Systems had raised EBIT by 13.9% and
earnings before interest, tax, depreciation and amortization (EBITDA) by 10.3%
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Earnings before tax (EBT) grew significantly to € 1.1 million, up from € 0.3
million, at the end of the 2008 nine-month period
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License revenues climb 3.9% at the end of the 2008 nine-month period
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Total revenues in the third quarter and at the end of the 2008 nine-month
period slightly above the previous year’s level
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Substantial increase in the cash flow to € 8.4 million, up from € 0.5 million, at the
end of the 2008 nine-month period
- Guidance for the year as a whole affirmed
Berlin, October 30, 2008 – Following on from a good first half-year in 2008, Beta
Systems Software AG (BSS, ISIN DE0005224406) had improved its results by the end of the 2008
nine-month period for the third quarter in a row, with a slight increase in revenues. Despite the
deteriorating market environment and the traditionally weaker third quarter, earnings before
interest and tax (EBIT) had risen 13.9% to € 0.8 million (Q1-Q3/2007: € 0.7 million) and earnings
before interest, tax, depreciation and amortization (EBITDA) by 10.3% to € 3.7 million (Q1-Q3/2007:
€ 3.4 million). Particularly notable was the increase in the result before tax, which climbed to €
1.1 million (Q1-Q3/2007: € 0.3 million). The result of the period under review, which came in at €
0.7 million (Q1-Q3/2007: € 0.3 million), was also clearly positive.
At the end of the first nine months of 2008, Beta Systems Software AG had raised license
revenues 3.9% to € 17.2 million. In the third quarter, license revenues fell € 0.8 million to € 4.4
million in contrast to total revenues which rose 1.2% to € 19.6 million (Q3/2007: € 19.4 million)
over the same period and by 1.5% to € 62.1 million (Q1-Q3/2007: € 61.2 million) at the end of nine
months). In the third quarter of 2008, services revenues came in at € 3.1 million (Q3/2007: € 3.2
million) and maintenance revenues at € 10.2 million (Q3/2007: € 10.2 million), virtually unchanged
from the previous year’s level. Scanner hardware revenues generated by new systems, realized as
part of customer-oriented total solutions for hard- and software, rose to € 5.0 million in the
first nine months of 2008 (Q1-Q3/2007: € 2.4 million). Moreover, the considerable increase of € 7.9
million to € 8.4 million in the cash flow from operating activities (Q1-Q3/2007: € 0.5 million),
which rose in tandem with the improved cost and results situation, was also very satisfactory.
Key Financial Data for the 2008 Nine-month Period at a Glance
- EBIT rises 13.9% to € 0.8 million (Q1-Q3/2007: € 0.7 million), EBITDA climbs 10.3% to € 3.7
million (Q1-Q3/2007: € 3.4 million), and EBT advances to € 1.1 million (Q1-Q3/2007: € 0.3 million)
- License revenues climb 3.9% to € 17.2 million (Q1-Q3/2007: € 16.5 million)
- Total revenues advance 1.5% to € 62.1 million (Q1-Q3/2007: € 61.2 million)
- Service revenues post € 10.0 million (Q1-Q3/2007: € 10.8 million)
- Maintenance revenues fall in line with expectations to € 29.9 million (Q1-Q3/2007: € 31.5
million) owing to process of consolidation in banks and data centers
- Hardware revenues generated by new systems, realized as part of customer-oriented total
solutions for hard- and software, rise to € 5.0 million, up from € 2.4 million
- The cash flow from operating activities climbs sharply to € 8.4 million (Q1-Q3/2007: € 0.5 million)
Key Financial Data for Q3/2008 at a Glance
- EBIT posts € 0.2 million (Q3/2007: € 0.3 million)
- License revenues post € 4.4 million (Q3/2007: € 5.2 million)
- Total revenues advance 1.2% to € 19.6 million (Q3/2007: € 19.4 million)
- Service revenues come in at € 3.1 million (Q3/2007: € 3.2 million)
- Maintenance revenues remain unchanged at € 10.2 million (Q3/2007: € 10.2 million)
- Hardware revenues increase to € 1.8 million, up from € 0.7 million
Statement by the Management Board
Kamyar Niroumand, Chief Executive Officer of Beta Systems Software AG, commented as
follows: “ Following on from a successful first half-year in 2008, we have succeeded in raising our
revenues and result again, despite the tense situation in the global capital and financial markets.
We have felt the first impact of the crisis in the financial markets on our customer base in recent
weeks. However, making a statement today on what the effects might be in the future is – and
remains – difficult. What cannot be entirely excluded is the fact that, in the future, there may be
delays or postponements in the placing of orders by our customers who mostly operate in the banking
and insurance sectors. On the other hand, it is crises such these which have the effect of driving
demand for IT solutions which enable compliance with official rules and regulations and provide
efficient support in the event of mergers. These software products and solutions are an integral
part of Beta Systems’ product portfolio, which means that this crisis may also turn out to be an
opportunity for Beta Systems.”
Gernot Sagl, Chief Financial Officer of Beta Systems Software AG, added the following: “We
succeeded in improving our results despite the critical situation in the financial markets not
least due to consistent and ongoing cost management. Moreover, the substantial increase in our cash
flow led to a significant reduction in financial liabilities, with the result that the financial
position of the company has improved again significantly.”
Outlook for the Fiscal Year 2008
Although, from today's standpoint, any statements on the future impact of the
financial crisis are difficult, the Management Board nonetheless currently stands by its
expectations of an improvement in the results as compared with fiscal 2007. With a marginal
increase in revenues, it has planned for an EBIT margin in the upper single-digit range and a
double-digit EBITDA margin. The prerequisite for this is that all three business segments are
profitable. The Management Board continues to assume that the goals of sustained profit improvement
through 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 report on the third quarter and the first nine months of 2008 will be released on
November 4, 2008.
End of the press release
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.
Contacts:
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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