euro adhoc: Beta Systems Software AG
Earnings
Beta Systems
announces preliminary results for Q4 2004
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
21.01.2005
Berlin, January 21, 2005 - After an initial analysis of the financial results for the fourth quarter of fiscal 2004 and subject to an auditors review, the Management Board of Beta Systems Software AG (Prime Standard: BSS, ISIN: DE 0005224406) anticipates that consolidated revenue generated by the Group in the final quarter of fiscal 2004 will amount to approx. EUR33 million. Owing to the consolidation of results attributable to Kleindienst Datentechnik AG, an enterprise in which Beta Systems acquired a majority interest, this corresponds to significant year-on-year growth (Q4 2003: EUR20 million) and an increase of approx. EUR6 million compared with revenue generated in the third quarter of fiscal 2004. As a result, the revenue target of approx. EUR100 million for fiscal 2004 will be narrowly met. Despite this positive performance, revenue levels fell well short of management expectations due to the postponement of several large-scale client projects.
At EUR3.7 million, earnings before taxes (EBT) for the fourth quarter of 2004 were higher than in the same period a year ago (EUR2.7 million). However, as a result of the above-mentioned revenue effects, they too failed to meet management expectations. Based on this performance, the Management Board forecasts that EBT for fiscal 2004 will remain below the targeted margin of 5%. Including exceptional effects, the details of which have already been published, earnings before taxes will remain above par at approx. EUR2 million, but will fall short of the figure of EUR4.8 million posted in the previous fiscal year.
Prompted by unsatisfactory revenue performance at Beta Systems and Kleindienst, the Management Board initiated a corporate streamlining program in the first quarter of fiscal 2005, with the express purpose of realizing more substantial cost reductions throughout the Beta Systems Group than originally planned as part of ongoing integration. In addition to implementing a number of measures aimed at scaling back costs with immediate effect, Beta Systems intends to reduce staffing levels throughout the Group in order to safeguard its targeted EBT margin of 10% in the medium term.
Further details of the streamlining package currently being planned will be announced as part of the full annual report for fiscal 2004 on March 21, 2005.
End of ad hoc announcement
end of announcement euro adhoc 21.01.2005 07:36:00
Further inquiry note:
Arne Baßler
Beta Systems Software AG
Tel.: +49 (0)30 726 118 0
Fax: +49 (0)30 726 118 800
E-Mail: ir@betasystems.com
Branche: Software
ISIN: DE0005224406
WKN: 522440
Index: Prime Standard, CDAX, Prime All Share, Technologie All Share
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