update software AG: strong first quarter with 38 percent increase in total revenue

Ad-hoc release according to §15 WpHG 
First Quarter Results 2006
update software AG: strong first quarter with 38 percent increase in total revenue
---------------------------------------------------------------------------------------------------------------
Vienna, Frankfurt, 20 April 2006 +++ update software AG, a leading CRM solutions provider listed on the Frankfurt stock exchange, has released its 2006 first-quarter results. It reports sales revenue of EUR 5.161 million (+38 %) and an increase in the licence business of more than 60 %.
Total revenue up 38 %
Although the first quarter in the software industry is traditionally weak, the company increased its total revenue by 38 % to EUR 5.161 million, compared to EUR 3.739 million in Q1 2005. The sharp rise in licence revenue (+ 61.1 %) is especially notable in this context. EBIT totalled EUR 0.291 million, up more than 730 % from the same period in 2005 (EUR 0.035 million). Earnings before taxes also increased by more than 880 % to EUR 0.206 million, compared to EUR 0.021 million for the same period in 2005.
Liquid assets down 7.7 %
The liquid assets as of 31 March 2006 were EUR 9.568 million, down 7.7 % from the balance at the end of Q1 2005 (EUR 10.369 million). The corresponding cash flow, burdened by the purchase of REGWARE GmbH, totalled EUR 1.882 million for Q1 2006. Compared to last year’s balance of EUR 4.613 million, which includes the capital increase of EUR 2.449 million, this corresponds to a decline of 59.2 %.
Equity up 35.6 %
update software AG’s equity capital as of 31 March 2006 totalled EUR 12.535 million, which corresponds to an increase of 35.6 % compared to last year’s level of EUR 9.247 million.
Commentary text:
“This renewed growth spurt, especially in the licence business, is yet another confirmation of the company’s strategic direction,” says the board of management, commenting update’s 2006 first-quarter results. In the light of this successful quarter, update is extremely confident to reach the full-year targets set for 2006.
In the first quarter, renowned companies such as Messer Tatragas in Slovakia, Belgische Distributiedienst in Belgium, Witty Chemie in Germany, the Vienna Employee Promotion Fund (Wiener ArbeitnehmerInnen-Förderungsfonds, WAFF) in Austria and Westland Kaas in the Netherlands opted for update as their CRM solutions provider. In addition, the CRM installations at a number of satisfied existing customers were optimised and expanded in the quarter just ended.
IR contact:
Jochen Zemroser
update software AG
Operngasse 17-21
A-1040 Vienna, Austria
Tel.: +43 1 878 55 512
Fax: +43 1 878 55 505
Jochen.Zemroser@update.com
This is a translation from German into English.