update software AG: Positive earnings in Q3

Vienna, Frankfurt, 20 October 2009 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2009 third-quarter results. With total sales revenue of EUR 7.764 million and operating earnings (EBIT) of EUR 0.707 million for the third quarter, the Company has once again posted a profit despite the continued weakness of the market.

Positive earnings in Q3
update software AG posted sales revenue totaling EUR 7.764 million in the third quarter of 2009. This represents a decline in revenue of 10.8% compared to the same period in 2008 (EUR 8.707 million) and is attributable to the continued difficult economic climate. As a result of the measures the Company has taken to increase efficiency and reduce cost, update software AG once again generated positive EBIT of EUR 0.707 million (Q3 2008: EUR 1.060 million). The corresponding EBT was EUR 0.715 million (Q3 2008: EUR 1.186 million).

Aggregate revenue for the first nine months of 2009 totaled EUR 23.372 million, compared to EUR 26.538 million for the first nine months of 2008. This corresponds to a decline of 11.9%. For the same period, Group EBIT was EUR -0.193 million (compared to EUR 2.749 million one year earlier). Aggregate EBT for the first three quarters of 2009 was EUR -0.029 million (3.047 million for the same period in 2008).

Large cash cushion and strong equity base
The Group’s cash position as of 30 September 2009 was EUR 11.283 million, down 17.8% from the cash position reported at the end of Q3 2008 (EUR 13.731 million). update software AG’s equity capital as of 30 September 2009 was EUR 26.348 million, down 4% year-on-year (30 September 2008: EUR 27.449 million).

Commentary text:
“We are pleased about our earnings performance in the current macroeconomic climate,” said the board of management, commenting the Company’s Q3 results. "This achievement is attributable not only to our loyal client base but also to the efficiency enhancement and cost reduction measures that we have taken to ensure sustained improvement of our profitability.” Given the generally volatile market conditions, the Board does not yet anticipate any trend reversal, as it is not possible at this point to foresee for how long the restrained capital spending policies will continue in the market segments addressed by update.

In the quarter just ended, update continued to gain renowned new customers, such as Hevert Arzneimittel GmbH & Co. KG in Germany or Rustler Gruppe GmbH in Austria. Other companies that opted for update’s CRM solution in the third quarter of 2009 included H.Stoll GmbH & Co. KG and Knauf Insulation GmbH. Further examples are EBEWE Neuro Pharma GmbH and the German parliamentary group Alliance 90/The Greens.

Investor Relations Contact:
Andreas Mössner
update software AG
Operngasse 17-21
1040 Vienna, Austria
Phone: +43 1 878 55 512
Fax: +43 1 878 55 9512