37 percent increase in total revenue confirms continued growth
Ad-hoc release according to §15 WpHG
Preliminary Results 2005
update software AG: 37 percent increase in total revenue confirms continued growth
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Vienna, Frankfurt, 24 January 2006 +++ update software AG, a leading European CRM solutions provider listed on the Frankfurt stock exchange, has released its preliminary financial results for the 2005 fiscal year. According to the announcement, total revenue increased by 21 percent to EUR 18.600 million. In the company’s top-selling fourth quarter, revenue totaled EUR 5.653 million, up 37 percent year-on-year.
37 percent increase in sales revenue in Q4
In the fourth quarter, update software AG boosted its total revenue to EUR 5.653 million, an increase of 37% from Q4 2004 (EUR 4.137 million). At 42%, the growth in the license business was even higher. EBIT rose by 105% compared to Q4 2004 (EUR 378,000) to EUR 776,000. The corresponding EBT was EUR 822,000 (Q4 2004: EUR 623,000).
Cash outflow in Q4 2005 was EUR 1.309 million, compared to EUR 123,000 in Q4 2004. This increase is due to higher costs and payment of the remaining purchase price for the Polish company acquired in March 2005.
21 percent increase in annual revenue
The company increased its total revenue for 2005 to EUR 18.600 million, up 21 percent year-on-year (2004: EUR 15.369 million). At an increase of almost 17 percent in license revenues, the company clearly confirmed it is on track for growth. The pro-forma EBIT – adjusted for one-off charges such as restructuring costs for customer support (around EUR 125,000) and costs of employee share options as a result of the transition from US-GAAP to IFRS (around EUR 110.000) – was EUR 2.294 million, a moderate decline by 0.8% compared to 2004 (EUR 2.313 million). The preliminary net income for 2005 was EUR 2.588 million (2004: EUR 2.605 million) and earnings per share EUR 0.25 (2004: EUR 0.28).
The liquid assets as of the 2005 balance sheet closing date were EUR 7.686 million, an increase of around 34% year-on-year. Cash flow improved by almost 18%, from EUR 1.637 million to more than EUR 1.930 million. update software AG’s equity capital as of December 31 2005 totaled EUR 11.950 million, compared to EUR 6.849 million on December 31 2004.
IR contact:
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:
The quarterly revenue posted in Q4 2005 is the highest in update’s history since Q4 2000 and provides impressive proof of the company’s continued growth. “Our 42 percent growth in the new license business in the fourth quarter at a highly profitable level clearly underscores our strategic orientation,” said Thomas Deutschmann, CEO, in commenting the results.
Once again, update gained many renowned new customers in the fourth quarter, among them the German publisher Dashöfer, ALK Abello in pharmaceuticals (in Germany), and the furniture manufacturer Svoboda GmbH & Co KG in Austria. A number of companies in Eastern Europe have also chosen update as their CRM solutions provider, among them Trodat in Poland, a subsidiary of the worldwide leader in self-inking stamps, and Vasa Stravovacia, a Slovak company in the tourist industry.
This is a translation from German into English.
