update software AG: revenue decline in the second quarter of 2009

Vienna, Frankfurt, 21 July 2009 +++ update software AG, a leading provider of CRM solutions listed on the Frankfurt Exchange, has released its 2009 second-quarter results. With sales revenue totaling EUR 7.715 million, the Group was unable to continue the growth trajectory of the last few years due to the current macroeconomic situation. Operating loss (EBIT) in the second quarter was EUR 0.612 million.

Revenue declined around 18% in the second quarter
update software AG posted sales revenue totaling EUR 7.715 million in the second quarter of 2009, down 17.86% compared to the same period in 2008 (EUR 9.392 million). Revenue was materially affected by customers holding off purchases due to the current macroeconomic climate. EBIT decreased to EUR -0.612 million (Q2 2008: EUR 1.314 million). The corresponding EBT was EUR -0.477 million (Q2 2008: EUR 1.415 million).

Aggregate revenue for the first half of 2009 totaled EUR 15.608 million, compared to EUR 17.831 million for the first 6 months of 2008. This corresponds to a decline of 12.47%. For the same period, Group EBIT was EUR -0.900 million (compared to EUR 1.689 million in H1 2008). Aggregate EBT for the first two quarters was EUR -0.745 million (H1 2008: EUR 1.861 million)

Cash position and equity base remain at a healthy level
The Group’s cash position as of 30 June 2009 was EUR 12.689 million, down 6.8% from the balance at the end of Q2 2008 (EUR 13.612 million). update software AG’s equity capital as of 30 June 2009 totaled EUR 25.691 million, compared to EUR 26.255 million on 30 June 2008. This corresponds to a decrease of 2.1%.

Explanatory text:
“In the second quarter just ended, our sales revenue was strongly affected by the ongoing difficult market situation,” said the board of management, commenting update’s performance. “It is not possible at this point to foresee for how long the restrained capital spending policies will continue in the market segments targeted by update. Under these circumstances, the board of management no longer expects a positive full-year result for 2009. Still, by intensifying the cost-cutting program that has already begun on the one hand, and in view of the stable and loyal customer base and strong cash position on the other hand, update considers itself well prepared to cope with the upcoming challenges.”

In the quarter just ended, update continued to gain renowned new customers, among them GEZE GmbH in Germany and Gebro Pharma GmbH in Austria. Other companies that opted for update’s CRM solution in the second quarter of 2009 included Sunstar Germany GmbH, Dr. Grandel GmbH, and the savings bank Sparkasse Mainfranken Würzburg, to mention but a few examples.

Investor Relations Contact:
Andreas Mössner
update software AG
Operngasse 17-21
A-1040 Wien
Tel: +43 1 878 55 512
Fax: +43 1 878 55 9512