Beta Systems Software AG

EANS-Adhoc: Beta Systems achieves breakeven in its quarterly result despite the decline in revenues in Q3/2009

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  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
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29.10.2009

- Good performance in the infrastructure business (DCI/IdM segment) with revenue and profit growth at the end of the first nine months of 2009 - Persistent weakness in new orders in the solutions business (ECM segment) causes revenues and profits to decline - Active cost management cushions the effect on profit at Group level: Nine-monthly result (EBIT) of EUR -0.8 million (Q1-Q3/2008: EUR 0.8 million) slightly negative - Measures package planned, including hiving off of the ECM solutions business - Adjusting of the outlook for 2009: positive annual result remains feasible

Berlin, October 29, 2009 - At the end of the first nine months of 2009, the business segments of Beta Systems Software AG (BSS, ISIN DE0005224406) had been impacted to a greatly varying extent by the global financial crisis: For instance, Beta Systems achieved gratifying growth in revenues and profits in its infrastructure business (Data Center Infrastructure (DCI) and Identity Management (IdM) lines of business (LoB)). By contrast, however, the ECM solutions business for banks and insurance companies (Enterprise Content Management (ECM) LoB) suffered a significant decline in revenues and profit due to the persistently low level of new orders caused by investment decisions either being postponed or not made at all by a number of major customers. The sum total of these counter effects caused consolidated revenues at Group level to fall to EUR 59.5 million at the end of the nine-month period (Q1-Q3/2008: EUR 62.1 million) and consolidated earnings before interest and tax (EBIT) to EUR -0.8 million (Q1-Q3/2008: EUR 0.8 million). Active cost management at Group level cushioned the associated effect on profit, bringing the result (after tax) for the nine-month period to EUR -0.8 million and earnings per share to EUR -0.06 (Q1-Q3/2008: EUR 0.7 million and EUR 0.06 per share). Despite the decline in revenues, the result of the third quarter 2009 was only marginally below breakeven (Q3/2008: EUR 0.4 million and EUR 0.03 per share).

Against this background, a package of measures was agreed the focus of which is the realigning of the solutions business, along with short-term cost savings. To achieve the greatest scope for the selection of suitable options, the plan is to hive off the ECM LoB in organizational terms and under company law and set operations up as an independent subsidiary.

With these developments in mind, the Management Board has adjusted its outlook. The Company´s management no longer assumes that raising revenues and profits at Group level in 2009 as against the previous year will be possible. Management still anticipates, however, that, at Group level, the customarily strong year-end business will make it possible to achieve positive annual result in fiscal 2009.

end of ad-hoc-announcement ========================================== ====================================== Information and explanations on this ad-hoc release by the issuer: The successfully integrated acquisitions and additions to the portfolio (DETEC, SI and Proginet) in the last two fiscal years have had a sustained and positive impact in the infrastructure business (DCI/IdM). Revenues in the IdM segment, for instance, rose by € 2.4 million, the equivalent of 40.2%, from € 5.9 to € 8.2 million in the first nine months of 2009 and, in the third quarter of 2009 alone, posted € 3.0 million (+96.3%), thus almost doubling (Q3/2008: € 1.5 million). The DCI segment raised its revenues by € 3.3 million, which is 12.9%, advancing from € 25.4 million to € 28.7 million over the nine-month period. At the end of the first nine months of 2009 both segments had raised their contribution to profit again despite integration costs and a generally higher cost basis (IdM: € 0.8 million (Q1-Q3/2008: € -0.5 million); DCI: € 11.9 million (Q1-Q3/2008: € 11.6 million)).

By contrast, the global financial crisis, which had its roots in the banking sector, had a severe impact on the ECM solution business. The downturn in demand – already evident in the first half of 2009, combined with a lower level of new orders and a series of major orders either postponed or not awarded by companies in the banking and insurance industries – did not see any basic improvement in the third quarter despite isolated sales successes. Revenues had therefore declined from accumulated € 30.9 million to € 22.7 million by the end of the nine-month period 2009. Although the contribution of € 1.4 million was still positive, it has nonetheless fallen by € 4.2 million, down from € 5.6 million.

Statement by the Chief Executive Officer “The results of the first nine months of 2009 must naturally be seen in the context of the global financial crisis. This crisis has left its mark, both in a positive and in a negative sense, on our software and solutions business”, explained Gernot Sagl, Member of the Management Board of Beta Systems Software AG, and added: “The strong performance in the infrastructure business in particular is compelling proof that our major customers are saving through IT, and not on IT, by using our infrastructure products. The situation in the extremely volatile ECM solutions business has, however, been further exacerbated as there have been time delays with major projects, compounded by fierce price competition right through to complete project stops. We have responded to this development and laid the keystone for a fundamental realignment in the coming fiscal year with our plans for founding the new company from hived off operations. In a peer group comparison we are better positioned and more stable than many other mid-sized software companies.”

More Key Financial Data for Q1-Q3/2009 at a Glance: - Revenues with software licenses remain unchanged at € 17.2 million (Q1-Q3/2008: € 17.2 million) - Maintenance revenues rise by 2.4% to € 30.6 million (Q1-Q3/2008: € 29.9 million) - Service revenues come in at € 9.1 million (Q1-Q3/2008: € 10.0 million) - Revenues from scanner hardware decline to € 2.6 million, as budgeted (Q1-Q3/2008: € 5.0 million) - EBITDA (earnings before interest, tax, depreciation and amortization) posts € 1.9 million (Q1-Q3/2008: € 3.7 million)

More Key Financial Data for Q3/2009 at a Glance: - Revenues from software licenses climb 23.3% to € 5.4 million (Q3/2008: € 4.4 million) - Maintenance revenues stand at € 10.1 million (Q3/2008: € 10.2 million) - Service revenues decline to € 2.6 million (Q3/2008: € 3.1 million) - Revenues from scanner hardware fall to € 0.6 million, as budgeted (Q3/2008: € 1.8 million) - Total revenues come in at € 18.7 million (Q3/2008: € 19.6 million) - EBIT posts € 0.1 million (Q3/2008: € 0.2 million) - Result for the period (after tax) comes to € -0.0 million and € -0.00 per share (Q3/2008: € 0.4 million and € 0.03 per share)

The complete Nine Monthly Report 2009 will be published on November 3, 2009, under the Investor Relations/Financial Reports heading at http://www.betasystems.com. All amounts cited in this information by the company and information derived therefrom (e.g. percentage figures) are figures fully rounded up to thousands of euros as presented in the Interim Consolidated Financial Statements as at September 30, 2009.

End of the information and explanations

Beta Systems Software AG – Agility Integrated Beta Systems Software AG Berlin (Prime Standard: BSS, ISIN DE0005224406) develops high-profile software products and solutions for the automated processing of large volumes of data and documents. These products and solutions serve to enhance process optimization, improve security and make IT more agile. They guarantee compliance with business requirements in respect of governance, risk management and compliance (GRC) and raise the performance of a company's IT in respect of availability, scalability and flexibility.

Beta Systems’ IT infrastructure software product segment (Infrastructure & Operations Management) is geared towards optimizing job and output management in data centers across all sectors. In addition, Beta Systems offers products for automating IT user administration to companies with high numbers of users. In its ECM Solutions Division (ECM & Document Solutions) Beta Systems develops customized solutions for large enterprises in the financial services sector, industry and trading in the areas of payments, processing of incoming post and general document management.

Beta Systems was founded in 1983, has been a listed company since 1997, and has a workforce of more than 600 employees. The company’s principal place of business is Berlin. Beta Systems operates through Centers of Competence in Augsburg, Cologne and Calgary, as well as 19 subsidiaries worldwide and cooperations with numerous partner companies. Throughout the world more than 1400 customers use the products and solutions of Beta Systems in more than 3300 running installations. At present, Beta Systems generates 50 percent of its sales from international business. Around 200 of its customers are based in the USA and Canada.

More information on the company and its products can be found under www.betasystems.com.

Ende der Mitteilung                               euro adhoc
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Further inquiry note:

Press contacts
Company contact:
Beta Systems Software AG
Stefanie Frey
Investor Relations
Tel.: +49 (0)30 726 118-171
Fax: +49 (0)30 726 118-800
e-mail: stefanie.frey@betasystems.com

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HBI PR&MarCom GmbH
Alexandra Osmani,
Alexandra Janetzko
Tel.: +49 (0)89 99 38 87-37/-32
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e-mail: alexandra_osmani@hbi.de
e-mail: alexandra_janetzko@hbi.de

Branche: Software
ISIN: DE0005224406
WKN: 522440
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Original-Content von: Beta Systems Software AG, übermittelt durch news aktuell

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