Beta Systems Software AG

Beta Systems: Group restructuring continues at pace

    - Group-wide restructuring and focus on three business segments
    - Implementation of consolidation, integration and cost-reduction
        measures by end of year

    Berlin (ots) -Group restructuring efforts initiated as part of the "Growth and Profit 2005 - GaP'05" program at Beta Systems Software AG (Prime Standard: BSS, ISIN DE0005224406) have been continuing at pace and are to be implemented by the end of the year.

    Focus on three business segments

    As part of the reorganization process, the company will be structured to focus on three areas of business with separate strategies in terms of profitability and growth. For this purpose, the marketing, sales and service functions previously pooled within the company will be allocated directly to the respective business segments. The profit center structure will enhance the level of operational and financial control exercised by segment management.

    IDM (Identity Management) will be responsible for developing, marketing and distributing cross-sector solutions for the management of digital identities and compliance with IT security standards in large enterprises and IT service providers. The DCI (Data Center Infrastructure) segment will focus on cross-sector solutions for reliable, transparent and error-free IT support of business processes in data centers. ECM (Enterprise Content Management) will supply industry-specific solutions designed to optimize document-based business processes within the areas of banking, insurance, public-sector administration, industry, trade and services.

      Closer proximity to customers

    The new corporate structure is aimed at achieving greater interconnection with client enterprises and increasing the level of specialization within the company's sales and service teams in order to tailor their activities more precisely to the specific requirements of the various market segments. The prime objective of these measures is faster reaction to customer demand, greater flexibility when it comes to meeting specific requirements as well as accelerated decision-making processes and more pronounced entrepreneurship within the new organization.


    The sale to TAI AG (a DZ Bank AG subsidiary) of Beta Systems' Outsourcing Service unit, which no longer matches the company's overall strategy, was completed in the first half of the fiscal year. The operating results for fiscal 2004 and 2005 will be adjusted for the results attributable to this business unit. The sale, generating proceeds of Euro 10.4 million, will result in one-off earnings (after taxes) of Euro 5.1 million in 2005. A Group-wide cash pool was established when the merger with Kleindienst Datentechnik AG officially came into force. In parallel, non-current financial liabilities were scaled back significantly. As a result, the year-end equity ratio will improve considerably.


    By the end of the fiscal year, the remaining domestic and foreign Kleindienst subsidiaries will either be amalgamated with the corresponding Beta Systems enterprises or renamed. This will contribute to a consistent Group structure requiring less administrative input. The unit responsible for producing scanner hardware will be transferred to a separate company.

      Cost reduction

    Measures to streamline cost structures, which were introduced at the beginning of the year, have now been implemented to a large extent by means of uniform business processes and targeted outsourcing. These efforts included staff downsizing of around 60 jobs within the Group, which means that the headcount at the end of 2005 will be scaled back to below 750 (FY 2004: approx. 800 employees, excluding Outsourcing Service unit). As a result of these measures, Beta Systems expects to reduce operating expenses by up to Euro 5 million in the coming 2006 fiscal year. In 2005, ongoing restructuring has so far produced one-off expenses of approx. Euro 2 million. The company anticipates that additional costs will be incurred within this area over the remaining months of fiscal 2005.


    The released funds will continue to be channeled into developing new and improved products and solutions, as well as being earmarked for targeted acquisitions that complement the company's portfolio and more far-reaching marketing activities designed to further enhance Beta Systems' competitiveness. Additionally, some of the funds will flow directly into operating income and contribute to an improved EBT margin.

      Comments of the Management Board

    "Thanks to our corporate realignment, Beta Systems will continue to be synonymous with experience, innovation and customer-orientation. The associated restructuring process within the Group is at an advanced stage," said Dietmar Breyer, CEO of Beta Systems Software AG. "As part of the 'GaP'05' program, we are currently creating a corporate structure in which our company has more opportunities to leverage its tremendous potential with regard to profitability and growth. Our message to customers, partners, staff and shareholders is simple: We are committed to becoming more dynamic and successful - and we shall deliver!"

    End of announcement

      Beta Systems Software AG, Berlin, Germany

    Beta Systems Software (Prime Standard: BSS on the German stock market) is a leading provider of high-performance enterprise solutions which enable companies to improve the efficiency of their business processes in the areas of Identity Management, Enterprise Content Management, Scheduling and Storage Management. Beta Systems' core skills are centered on developing automated solutions that reduce costs and qualitatively optimize the processing of large quantities of data in z/OS, Unix, Linux and Windows environments.

    Beta Systems has been listed on the stock market since 1997, has 758 employees (as of June 2005) and operates worldwide through 15 own subsidiaries and through several corporate partners. IT service providers and large financial services and insurance companies are among Beta Systems' customers, as are enterprises in the areas of trade, industry, telecommunications, logistics and energy supply, and public authorities. For further information, please visit our website at

ots Originaltext: Beta Systems Software AG

Public Relations
Leo Ganz
Beta Systems Software AG
Tel.: +49 (030) 726 118 - 678
Fax: +49 (030) 726 118 - 852

Investor Relations
Arne Bassler
Beta Systems Software AG
Tel.: +49 (030) 726 118 - 170
Fax:  +49 (030) 726 118 - 881

Weitere Meldungen: Beta Systems Software AG

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