update software AG: Sales revenue growth in the second quarter of around 16 percent, EBIT growth of almost 28 percent

Ad-hoc Report

Vienna, Frankfurt, 18 July 2008 +++ update software AG, a leading provider of CRM solutions listed on the Frankfurt Exchange, has announced its figures for the second quarter of 2008. The Company once again posted increasing revenues, which gained around 16% compared to the prior-year quarter, totalling EUR 9.392 million. Operating income (EBIT) rose to EUR 1.314 million in the second quarter, up around 28%.

Sales revenue growth in the second quarter of around 16%

Based on continuous growth in licensing and services revenues, update software AG improved its operating performance significantly in the second quarter of 2008. Total revenue increased to EUR 9.392 million, up 15.6% compared to the second quarter of 2007 (EUR 8.123 million). Operating income (EBIT) increased year-on-year by 27.8% to EUR 1.314 million. Earnings before taxes (EBT) came in at EUR 1.415 million, an increase of 32.8%.

On a semi-annual basis, total revenue rose from EUR 14.138 million in H1 2007 to EUR 17.831 million in 2008, which corresponds to an increase of 26.1%. The resulting EBIT of EUR 1.689 million was up 18.5%, significantly above the year-earlier performance (EUR 1.425 million). Earnings before taxes of EUR 1.861 million increased 18.5% on a semi-annual basis.


Cash on hand up 15.7%, shareholders’ equity up 19.7%

Cash on hand as of 30 June 2008 rose from EUR 11.761 million in the prior year to EUR 13.612 million in spite of the first-ever dividend payment of EUR 1.143 million in June 2008 and the capital increase of EUR 4.405 million in June 2007. This increase in cash on hand is attributable to the positive operating performance. Shareholders’ equity of update software AG totalled EUR 26.255 million as of 30 June 2008, compared to EUR 21.942 million as of 30 June 2007.



Explanatory text:

"The total sales revenue generated in the second quarter of 2008 is a renewed confirmation of our strategic orientation and our targets for the current financial year," said the Chairman of update’s Management Board about the results. "The positive operating performance strengthens our market position and enhances the Group’s long-term strategic leverage on the international CRM market." update software AG expects organic growth for sales revenue and EBIT of around 20% for the current financial year.

In the quarter just ended, update continued to gain renowned companies as new customers, among them ThyssenKrupp Metallurgie GmbH, ThyssenKrupp MinEnergy GmbH, PASCOE Pharmazeutische Präparate GmbH, Durable Hunke & Jochheim GmbH u. Co. KG and VAG-Armaturen GmbH in Germany. Shimano Benelux BV and AS Nancy Lorraine, the French football club, also decided in favour of a CRM solution from update in the second quarter. Raiffeisen Switzerland and Valiant Privatbank AG are additional examples.


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