update software AG: Growth trajectory continued in the first quarter of 2008, with sales revenue up by more than 40 percent

Ad-hoc Release

Vienna, Frankfurt, 18 April 2008 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2008 first-quarter results. Total revenue increased by more than 40% year-on-year to EUR 8.439 million, reflecting the company’s continued growth momentum. Operating income (EBIT) in the first three months was EUR 0.376 million.

Strong revenue growth of more than 40%

Although the first quarter in the software industry is traditionally weak, update software AG’s sales revenue increased by 40.3% to EUR 8.439 million, compared to EUR 6.014 million in Q1 2007. A major driver of this growth was licence revenue, which increased 25.5% year-on-year. Operating income (EBIT) of EUR 0.376 million was close to last year’s Q1 result of EUR 0.398 million. This was due to a higher proportion of third-party licences. The corresponding EBT of EUR 0.446 million constitute a decrease of 11.7% compared to Q1 2007 (EUR 0.505 million).


Significant increase in cash on hand and shareholders’ equity

update software AG’s cash position as of 31 March 2008 was EUR 16.834 million, up 40.2% from the balance at the end of Q1 2007 (EUR 12.010 million). Cash flow for the first quarter of 2008 was EUR 6.612 million, up more than 35.0% compared to last year’s Q1 cash flow of EUR 4.896 million. update software AG’s shareholders’ equity as of 31 March 2008 totalled EUR 25.901 million, which corresponds to an increase of 56.2 % compared to last year’s balance of EUR 16.581 million.

Commentary text:

“Even in the traditionally weaker first quarter, our company’s strategic focus was borne out by yet another strong revenue growth“, says the board of management, commenting update’s quarterly results. “The Group’s operating performance is in line with our targets for the current financial year. update software AG expects organic growth in sales revenue and EBIT of around 20% for the 2008 financial year.”

Among the new customers gained in the first quarter were numerous German savings banks, Liebherr Hausgeräte GmbH, Büsscher & Hoffmann GmbH and the German cancer aid organisation (Deutsche Krebshilfe), as well as Wynid Technologies BTB in France. In addition, update also expanded existing CRM installations at a number of satisfied established customers in the first quarter of 2008.



Investor relations contact:
  
Andreas Mössner   
update software AG
Operngasse 17-21
A-1040 Vienna   
Phone: +43 1 878 55 512
Fax: +43 1 878 55 9512
Andreas.Moessner@update.com
www.update.com