USU Software achieves earnings level of previous year after nine months
Möglingen (ots)
- International share in higher Group revenues increased further - Cost increase remains low, despite higher number of employees - Expansion of product business pushes earnings growth - Financing solid with high liquidity and equity ratio - Group profits to exceed EUR 3 million in 2007
USU Software AG (ISIN DE000A0BVU28) today published its figures for the first nine months of the 2006 financial year. The Company and its subsidiaries (hereinafter also "USU" or "USU Group") improved Group revenues according to IFRS by 19.5% or EUR 2,868 thousand year-on-year to EUR 17,541 thousand (PY: TEUR 14,673 thousand). Group profits totaled EUR 1,015 thousand (PY: EUR 97 thousand) and after 9 months were already almost at the level for the whole of the 2005 financial year. Earnings per share increased accordingly, from EUR 0.01 in the previous year to EUR 0.11 in the reporting period. In the same period, USU improved earnings before interest and taxes (EBIT) to EUR 689 thousand, after a negative EBIT of EUR 197 thousand last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) at EUR 1,106 thousand (PY: EUR 341 thousand) was also considerably above the level of the previous year.
International share in higher Group revenues further increased
With Group revenues of EUR 17,541 thousand (PY: EUR 14,673 thousand), USU generated a year-on-year revenues upturn of EUR 2,868 thousand or 19.5%. The key factors here were the sustained strength of its product and solutions business in Germany and internationally basis. The level of the USU Group revenues generated outside Germany increased to EUR 2,071 thousand in the reporting period (PY: EUR 1,567 thousand). This represents an international share in Group revenues of 11.8% (PY: 10.7%).
Cost increase remains low, despite higher number of employees
Group costs rose by 12.2% to EUR 16,830 thousand (PY: EUR 14,999 thousand), thus increasing at a lower rate than revenues. This reflects primarily the expansion of the internal consultancy team, and well as the extension of the sales team and partner management. In comparison to September 30, 2005, the USU Group workforce increased by 8.1% to 213 (PY: 197) to the end of the third quarter of 2006.
Expansion of product business pushes earnings growth
In the 9-month period of 2006, the earnings situation in the USU Group improved considerably against the previous year. It was particularly the expansion of the high-margin product business which impacted positively. As forecast by the Management Board, in the reporting period, USU generated an above-average increase of Group profits to EUR 1,015 thousand (PY: EUR 97 thousand). After nine months, this put USU almost at the earnings level of the whole of the 2005 financial year. In the first three quarters of 2006, earnings per share totaled EUR 0.11 (PY: EUR 0.01) with an average number of shares of 9,081,054 (PY: 8,745,566). In the same period, EBIT (earnings before interest and taxes) improved to EUR 689 thousand, after a negative EBIT of EUR 197 thousand in the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) at EUR 1,106 thousand (PY: EUR 341 thousand) were also considerably above the figure of the previous year.
Financing solid with high liquidity and equity ratio
The USU Group's total liquidity (cash and cash equivalents and investments) increased to EUR 16,229 thousand as of September 30, 2006 (December 31, 2005: EUR 15,721 thousand). Shareholders' equity at USU also increased to EUR 37,071 thousand (December 31, 2005: EUR 36,092 thousand), due to the net profit generated for the period. At the same time, USU significantly reduced liabilities to EUR 6,246 thousand (December 31, 2005: EUR 6,894 thousand). As a result, the equity ratio rose from 84.0% as of December 31, 2005 to 85.6% at the end of the third quarter of 2006.
Group profits to exceed EUR 3 million in 2007
After the positive business of the preceding quarters, the USU Software AG Management Board also expects the dynamic trend to continue, driven primarily by the product and solutions business. In addition to the organic growth, LeuTek, acquired in November 2006, will contribute to accelerated revenues and earnings growth. Together with LeuTek, USU offers a holistic portfolio in the area of Business Service Management, which offers enormous potential on both a national and international basis. This is also confirmed by Forrester, the independent market research company. Just recently, Forrester included USU in the Leadership area for IT Asset Management- as one of the world's leading five companies.
For 2006 as a whole, the Management Board confirms its targets of revenue growth in excess of market performance and an above-average increase in the consolidated profit generated by the Group. In the 2007 financial year, according to the planning of the Management Board, the USU Group should generate an increase of revenues of between EUR 32 million and EUR 33 million and net income considerably exceeding EUR 3 million.
For further information please contact:
USU Software AG Investor Relations Falk Sorge Tel.: +49 7141 4867 351 Fax: +49 7141 4867 108 E-Mail: f.sorge@usu-software.de
USU Software AG Corporate Communications Dr. Thomas Gerick Tel.: +49 7141 4867 440 Fax: +49 7141 4867 909 E-Mail: t.gerick@usu-software.de
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