Record sales revenue and earnings in 2007
Vienna, Frankfurt, 25 January 2008 +++ update software AG, a leading European CRM solutions provider listed on the Frankfurt stock exchange, has released its preliminary financial results for the 2007 financial year. With total sales revenue for the year of EUR 32.538 million and operating earnings (EBIT) of EUR 3.705 million, update looks back on the strongest year in its history.
46 percent increase in sales revenue in Q4
The fourth quarter of 2007 was the most successful quarter by far in the company’s history. Total sales revenue increased by 46.2%, from EUR 7.155 million in Q4 2006 to EUR 10.464 million in Q4 2007. This historic result is also reflected in the company’s profitability: EBIT totalled EUR 1.539 million, up 41.7% from Q4 2006 (EUR 1.086 million), while EBT increased 69.9% to EUR 1.757 million (Q4 2006: EUR 1.034 million).
Annual revenue growth of more than 39%
update posted a 39.3% revenue growth for the 2007 financial year, from EUR 23.366 million in 2006 to EUR 32.538 million in 2007. Broken down by segments, revenue increased as follows: Licenses (+39.0%), Services (+42.7%) and Maintenance (+33.9%). This staggering growth is further borne out by the company’s 2007 earnings: update’s preliminary EBIT soared to a record EUR 3.705 million, up 51.9% year-on-year (2006: EUR 2.439 million). Net income for 2007 cannot be released before deferred taxes have been computed.
The company’s cash position as of the 2007 balance sheet closing date was EUR 10.222 million, an increase of 43.7% year-on-year. Cash inflow for the 2007 financial year totalled EUR 3.108 million, compared to a negative cash flow of EUR -0.572 in 2006.
update software AG’s preliminary equity capital as of 31 December 2007 totalled EUR 24.608 million, up 53.45% from the balance on 31 December 2006 (EUR 16.036 million).
Commentary text:
„We are delighted to present record revenue and earnings for the second year in a row. This success is due to our unswerving commitment to our strategy of providing industry-focused solutions as well as technological innovation and ongoing expansion of our target markets from within Europe,“ said the board of management, commenting the results.
Projects with both new and existing customers contributed to the success. Among the new customers acquired in 2007 were K&H Bank in Hungary, a subsidiary of the KBC Group, the Austrian Doka Schalungstechnik GmbH, an Austrian building component supplier within the Umdasch group, Sony GmbH in Germany, and Gruner & Jahr (Media) in Poland. Another example of a new customer in the pharmaceutical industry was the international Daiichi Sankyo group. Last year’s largest contract – the largest contract in the company’s history – was secured with OVB Holding AG, a leading European financial services provider with 9.600 employees in 14 countries.
This is a translation from German into English.
IR Contact:
Monika Fiala
update software AG
Operngasse 17-21
A-1040 Vienna
Phone: +43 1 878 55 502
Fax: +43 1 878 55 505
Monika.Fiala@update.com
www.update.com
