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Beta Systems announces results for the third quarter 2005
Berlin (ots) - Beta Systems Software AG (BSS, ISIN DE0005224406) today announced the results for the third quarter and the first nine months ended September 30, 2005.
Key Operational Highlights
- Merger with Kleindienst executed effective from August 25, 2005
- Karl-Joachim Veigel leaves Management Board of Beta Systems
- Restructuring program continues unabated
Financial Highlights for Third Quarter 2005, Beta Systems
- Revenue declines to Euro 21.7 million (Q3 2004: Euro 23.5
- Non-recurring items: Third-quarter expenses of Euro 1.9 million
relating to integration (incl. merger-specific expenses) as well
as Group-wide restructuring and cost-reduction measures
- Pre-tax loss from continuing operations of Euro 3.8 million (Q3
2004: loss of Euro 1.4 million)
- Net loss of Euro 2.0 million/Euro 0.47 per share (Q3 2004: loss
of Euro 0.7 million/Euro 0.18 per share)
Financial Highlights for First Nine Months 2005, Beta Systems
- Revenue increases by 8.2% to Euro 64.9 million (9M 2004: Euro
- Non-recurring items I: Expenses of Euro 3.8 million in the first
nine months of 2005 relating to integration (incl.
merger-specific expenses) as well as Group-wide restructuring
and cost-reduction measures
- Pre-tax loss from continuing operations of Euro 9.5 million (9M
2004: loss of Euro 2.4 million)
- Non-recurring items II: Gain on disposal of Outsourcing Service
business unit of Euro 5.1 million
(less taxes and operating loss from Jan. 1, 2005, to date of
disposal on Apr. 30, 2005)
- Net loss of Euro 0.2 million/Euro 0.06 per share (9M 2004: loss
of Euro 0.9 million/Euro 0.23 per share)
Comments of the Management Board
"The situation within the IT sector, particularly in Germany, continues to be characterized by reluctance on the part of customers to invest in new systems. There was no sign of a reversal of this trend in the third quarter of 2005. As outlined in previous quarterly reports, fiscal 2005 has been dominated by cost reduction, consolidation, and integration within the framework of our "GaP'05" program. Our objective is to create a corporate structure in which we can unlock our potential within the area of earnings and growth in a more decisive manner," said Dietmar Breyer, CEO of Beta Systems Software AG, commenting on the results.
Mr. Breyer added, "We are committed to completing the current
process of Group restructuring in a timely manner, the prime
objective being that we can kick off with a new organization and
optimized cost structures in fiscal 2006. We are currently
anticipating a sustained reduction in our break-even threshold by up
to Euro 5 million. With regard to our outlook for 2005, it should be
noted that the prevailing market conditions and expenses associated
with restructuring were taken into consideration. On this basis, we
are able to reaffirm our forecast. We remain confident that we can
achieve a year-on-year increase in revenue from continuing
operations. At the same time, our pre-tax result from continuing
operations, adjusted for non-recurring items, is expected to reach
break-even level. Owing to the one-off gain on disposal of our
Outsourcing Service business unit, an area discontinued as part of
the sale, net income for the year as a whole is expected to rise."
Important note on comparability with financial statements published for previous years
As from fiscal 2005, all financial statements are prepared in accordance with generally accepted International Financial Reporting Standards (IFRS). Within this context, all data for previous years, i.e. all balance sheet items as well as all items included in income statements, have been adjusted accordingly. The conversion from US-GAAP to IFRS has resulted in a number of differences in terms of financial reporting. These have been outlined in the Notes to this report, which also include detailed reconciliations.
Owing to the discontinued operations of the Outsourcing Service business unit, all data for 2004 and 2005 relating to profit before taxes (e.g. operating profit and EBT) has been listed with the supplementary annotation "from continuing operations". These figures include neither revenues nor operating expenses associated with the business unit disposed of by the company. Income from discontinued operations is reported after taxes and is included directly in net income, viz. the result for the reporting period. Based on this, the figures for fiscal 2004 are as follows:
Financial indicators 2004 according to IFRS (unaudited) Euro million
Revenue (continuing operations) 90.0
Operating income (continuing operations) 0.9
Earnings before taxes (continuing operations) 0.3
Income from discontinued operations 1.0
Net income 0.1
Cost of restructuring program
In the fiscal year to date, total expenses associated with the integration (incl. merger expenses) as well as Group-wide restructuring and cost-reduction measures within the framework of "GaP'05" amount to Euro 3.8 million. Additional costs are expected to be incurred within this area by the end of the fiscal year.
The company will comment on the financial results for the third quarter of 2005 as part of a conference call to be held on Thursday, November 10, 2005. The conference call will take place at 11:00 CET and can be accessed by calling +44 (0)20 7365 1850 (Access Code: "betasystems"). A tape recording of the telephone conference will be available for twenty-four hours. This recording can be accessed by calling +44 (0)207 784 1024 (Access Code: 2438718#).
The full quarterly report has been published under www.betasystems.com.
End of announcement
Beta Systems Software AG, Berlin, Germany
Beta Systems Software AG (Deutsche Börse - Prime Standard: BSS) is a leading supplier of infrastructure software for enterprise critical applications for the automation and protection of business processes. Beta Systems provides software in the following areas: Identity Management (IDM), Enterprise Content Management (ECM) and Data Centre Infrastructure (DCI). All Beta Systems' solutions are able to manage high-volumes of information and throughput. They secure business critical data and help achieve compliance by addressing regulatory requirements. The ECM product range includes scanners and sorters from Kleindienst - a brand owned by Beta Systems Software AG.
Beta Systems has been listed on the Deutsche Börse (German stock exchange) since 1997 and employs 741 people (as at September 2005). The company has 15 subsidiaries worldwide, as well as numerous business partners. Beta Systems' worldwide customer base comprises more than 1000 customers including IT service providers and large organisations from the fields of finance and insurance, manufacturing, commerce, telecommunications, logistics and energy supply, along with public sector organisations. For further information please visit: www.betasystems.com
This quarterly report contains forward-looking statements based on current assumptions and forecasts by the management of Beta Systems. Although these assumptions and forecasts are based on prudent commercial judgment, there can be no assurance that the expectations expressed therewith are correct or will materialize. The assumptions and forecasts contained herein may be subject to risks or uncertainties which could cause actual results or outcomes to differ materially from those expressed in the assumptions and forecasts. Factors that may cause actual results to differ materially are, among others, changes in economic conditions and the business-related environment, changes in exchange rates and interest rates, introduction of competing products, lack of demand for or interest in new products or services, as well as changes with regard to the Company's strategy. Beta Systems disclaims any obligation to update any forward-looking statements to reflect subsequent events or circumstances. All trade names, trademarks, and service marks or logos used in this document are the property of the respective companies.
Originaltext: Beta Systems Software AG
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Contact: Corporate Communications Arne Bassler Beta Systems Software AG Tel.: (030) 726 118 -170 Fax: (030) 726 118 - 881 e-mail: email@example.com