update with positive results in Q2
update with positive results in Q2…Operative results increased by 105 per cent in the 2nd quarter 2003 compared to the same quarter of 2002...
Production costs lowered by 30 per cent
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Vienna, Frankfurt, July 21, 2003 +++ update software AG, listed on the Frankfurt Stock Exchange and Europe’s leading vendor of Customer Relationship Management (CRM) solutions, achieved a positive result in the 2nd quarter 2003 (end: 30 June 2003). This is the first positive result since IPO. The new executive board, led by CEO Thomas Deutschmann, have managed to turn an operative minus of EUR 2 million into an operative profit of EUR 67,960 in the 2nd quarter 2003 within three quarters. Revenue could be increased by 3.4 per cent to EUR 3.2 million compared to the 1st quarter 2003. Revenue decreased from EUR 4.1 to EUR 3.2 million compared to the same period the previous year. This is due to the closure of subsidiaries abroad and declining revenue by partners.
Cost of goods sold were lowered by 30 per cent to EUR 822,000 compared to the same period the previous year and therefore the gross margin was raised to 75 per cent. The gross margin increased by six per cent compared to the same quarter the previous year. Operative costs fell by nearly 47 per cent to EUR 2.3 million in the 2nd quarter of 2003 compared to the 2nd quarter of the previous year. The deficit as at 30 June of this year amounted to minus EUR 255,000, which equates to an improvement of 85 per cent compared to the 2nd quarter 2002. The cash drain also fell, in this case by 68 per cent. Liquid funds amounted to EUR 4.5 million as at 30 June of this year.
IR contact:
Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Wien
Tel: +43 1 878 55 512
Fax: +43 1 878 55 505
Jochen.Zemroser@update.com
www.update.com
This is a translation from German into English.
