euro adhoc: arxes NCC AG
Quarterly or Semiannual Financial
Statements
Fiscal 2004/05 (figures for the third quarter)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
24.05.2005
Ad-hoc release
May 24, 2005
EBIT makes up 1.1% of sales in the third quarter Operating income at 10.7 million euros Balanced operative cashflow
In the third quarter of the current fiscal year, sales revenue from services was on target at 8.8 million euros (previous year: 10.9 million euros), while revenue from the sale of goods fell slightly short of the target at 1.2 million euros (previous year: 1.1 million euros). The 11.6 percent drop in overall sales compared to the second quarter is mainly the result of the modest volume of orders for IT projects. The sector of projects is inherently subject to greater fluctuations. In total, 30% of total sales is generated in projects, while 70% comes from long-term contracts for the operation of IT systems.
EBIT of +0.1 million euros in the third quarter
In the third quarter of the current fiscal year, earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to +0.4 million euros. After write-offs in the amount of 0.3 million euros, earnings before interest and taxes (EBIT) amounted to 0.1 million euros. Overall, profitability developed according to plan.
The cumulative cashflow from operating activities was balanced in the reporting period.
As of March 31, 2005, arxes had liquid funds and securities due on demand in the amount of 3.5 million euros, which represents a solid foundation after investments have been completed.
Prospects for further developments in fiscal 2004/05
The strategic refocus of arxes in the course of addressing midsize customers required extra marketing efforts, which put a burden on profitability for the time being, as announced in previous press releases. The low EBIT margin for the first three quarters (cumulative 1.3 percent) reflects this burden. For fiscal 2004/05, an average overall annual profit margin after interest and tax of 2% is still expected.
Furthermore, arxes continues to pursue the goal of increasing income even as it expands sales to midsize customers this fiscal year, so that the margin should improve considerably in the fourth quarter of 2004/05.
The Management is satisfied with the overall development of the third quarter as the latest sales successes show that addressing midsize companies was the right strategic decision to offer arxes a lot of development potential. For instance, 35 new employees have been added to the branch office in Frankfurt alone for two new outsourcing projects.
For further information and to receive the detailed quarterly report, contact: arxes Investor Relations, +49-221-964-86-129, ir@arxes.de, www.arxes.de
end of announcement euro adhoc 24.05.2005 21:15:00
Further inquiry note:
Martina Göhl
Tel.: +49(0)221-96486-129
E-Mail: ir@arxes.de
Branche: Online
ISIN: DE0005098008
WKN: 509800
Index: Prime Standard
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