update posts further revenue growth and strong cash position
Ad-hoc release according to §15 WpHG
Q1 2005 Results
update posts further revenue growth and strong cash position
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Vienna, Frankfurt, April 20, 2005 +++ update software AG, a leading European CRM solutions provider listed on the Frankfurt stock exchange, has released its 2005 first-quarter results, which reflect the company’s continued expansion strategy. With EUR 3.739 million in revenues (an increase of more than 6.4 %) and liquid assets totalling EUR 10.369 million, the company generated EBIT of EUR 35,000.
Revenue increased by more than 6.4 %
The company increased its 2005 first-quarter revenue to EUR 3.739 million, up to 6.43 % year-on-year (Q1 2004: EUR 3.513 million). EBIT totalled EUR 35,000, compared to EUR 448,000 in Q1 2004. At EUR 20,000, earnings before taxes were also well below last year’s EBT of EUR 288,000. This drop in earnings had been anticipated and is attributable primarily to investments in sales and marketing as well as professional services, which were made to achieve the aspired annual growth.
Cash flow increased by 66.84 %
The cash position as of 31 March 2005 was EUR 10.369 million, up to 50.65 % from the balance at the end of Q1 2004 (EUR 6.883 million). Cash flow increased even more, from EUR 2.765 million to EUR 4.613 million (up to 66.84 %), and breaks down as follows:
Net cash from operating activities was EUR 3.341 million. Net cash inflow from financing activities (EUR 2.345 million) was due to a share capital increase in the beginning of the year, while net cash outflow from investing activities (EUR 1.072 million) is mainly attributable to the acquisition of Process4E S.A. in Poland.
Shareholders’ equity increased by 104.31 %
update software AG’s shareholders’ equity as of 31 March 2005 was EUR 9.247 million, up to104.31 % from the previous year (EUR 4.526 million).
Information on accounting principles
On 1 January 2005, update software AG began preparing its accounts under IFRS/IAS principles. EU Regulation 1606/2002 requires publicly traded companies, with some exceptions, to prepare and publish their consolidated accounts under the International Financial Reporting Standards (IFRS), formerly International Accounting Standards (IAS), for each financial year starting on or after 1 January 2005. The differences according to amount compared to US-GAAP (until 31 December 2004) are considered as marginal in the case of update software AG.
IR Contact:
Mr. Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Vienna, Austria
Tel: +43 1 878 55 512
Fax: +43 1 878 55 505
Jochen.Zemroser@update.com
www.update.com
Commentary text:
“Unlike a number of competitors, update has managed to increase its revenue despite the fact that the first quarter is traditionally weak in the software industry. The total cost increase resulting from the company’s expansion is entirely on track. Given that overall business has developed as planned, we are very confident that we will meet the communicated annual targets,” says the board of management, commenting update’s quarterly results.
Once again, update gained several renowned companies as new customers, among them Deutsche Amphibolin Werke (a well-established company within the Caparol Group, a leading maker of paint), Stahlton AG in Switzerland (a supplier of masonry and facade insulation components), Industria in Holland (which develops automation solutions for road transport) and Practilub in Hungary (a company in the chemical sector).
This is a translation from German into English.
