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IVU Traffic Technologies AG

euro adhoc: IVU Traffic Technologies AG
Annual Reports
2004 Annual Report Weaker revenues Substantial cost cuts Operating result close to the black again Result forecast for 2005: EUR1 to 2 million

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
02.03.2005
IVU Traffic Technologies AG made enormous strides forward during the
2004 business year in its efforts to restructure the company, as
revealed by the annual report, which was adopted today by the
Supervisory Board of the Berlin software company. The EUR 26.8
million in revenues were 10% lower than in the previous year and thus
weaker than anticipated. At the same time, IVU make deep cuts in its
costs, which improved the operating result, leaving it at a mere EUR
-400,000. IVU estimates that it will earn EUR 1 to 2 million in
operating profit not considering severance payments.
Personnel expenditures over the 12-month period dropped another 14%
percent to EUR 16.7 million, which is a EUR 2.8 million reduction.
However, the entire cost of the redundancy measure for the current
year had already been allocated in 2004, which means that the profit
and loss statement shows a personnel cost figure that is roughly EUR
1 million higher. In addition to personnel costs, 2004 also saw a EUR
1.4 million reduction in other operating expenses, i.e. the company’s
costs for property and equipment, which amounts to 21%. Unlike the
operating result, both EBIT and the consolidated profit remained
significantly negative, due to high depreciations, particularly in
the area of services on the company’s own account that were activated
in the past. In addition, a one-time goodwill depreciation amounting
to EUR 3.3 million was written off, which burdens the profit and loss
statement.
"Considering the difficult economic climate that has left the public
sector and especially local governments short on cash, we put up a
good fight in 2004, even if we are not particularly happy with our
revenue figures," said Prof. Dr. Ernst Denert, Chairman of the
Executive Board of IVU. The revenue shortfall forced the company to
make further cuts in personnel costs. As a result, 38 employees were
laid off in 2005, 27 of them in Berlin and 11 in Aachen. Reductions
in personnel expenses due to the layoffs will run to EUR 1.4 million
in 2005 and EUR 2.1 million in 2006. However, the full impact of this
measure on liquidity will not be felt until 2006, with only EUR0 0.4
million applying to 2005.
The company’s target is to keep 2005 sales at least at the same level
as in the previous year, there is a good chance that this target will
be exceeded and reach around EUR 28 to 29 million. This situation,
along with the redundancies and lower material costs, would result in
an operating result between one and two million euros not considering
severance payments, enough to finance necessary investments. The
volume of orders at the beginning of 2005 is good, with new orders
covering about 60% of the sales planned for 2005 as of 31 December
2004. As of 31 Dec. 2004, IVU held EUR 1.6 million in cash, EUR 2.7
million in available lines of credit, while another EUR0 0.9 million
had been furnished as a deposit for guarantees. If the company earns
between EUR 28 and 29 million in revenues, it will achieve sufficient
liquidity in 2005.
On Wednesday, 9 March 2005, the complete report will be posted online
at www.ivu.de.
end of announcement                    euro adhoc 02.03.2005 15:33:33 

Further inquiry note:

Gerd Henghuber
Leiter Unternehmenskommunikation
Telefon: +40(0)30-85906-800
E-Mail: gh@ivu.de

Branche: Computing & Information Technology
ISIN: DE0007448508
WKN: 744850
Index: Prime Standard, Prime All Share, Technologie All Share, CDAX
Börsen: Frankfurter Wertpapierbörse / regulated dealing
Berliner Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade
Bremer Wertpapierbörse (BWB) / free trade

Original content of: IVU Traffic Technologies AG, transmitted by news aktuell

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