euro adhoc: Beta Systems Software AG
Annual Reports
Beta Systems Announces Return to Profit for Fiscal Year 2002 (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Berlin, March 20, 2003 - With today's announcement of the audited fiscal 2002 annual results, Beta Systems Software AG (Prime Standard: BSS) confirmed the preliminary numbers on revenues and earnings published in January. Beta Systems recorded a substantial pre-tax profit of Euro 2.3 million compared with a pre-tax loss of Euro 7.2 million in 2001. This significant achievement is the result of the "Eight Step" program, initiated in May 2001 with the express purpose of returning the Company to profitability and positioning Beta Systems to achieve sustainable long-term growth. Furthermore, this program has now been successfully implemented ahead of the original two-year schedule.
Financial Highlights Fiscal Year 2002 - Total revenues increased to Euro 45.1 million (2001: Euro 45.0 million) - Pre-tax income of Euro 2.3 million (2001: pre-tax loss of Euro 7.2 million) - Operating income of Euro 0.1 million (2001: operating loss of Euro 7.3 million) - Net income of Euro 0.3 million or 0.08 Euro per share (2001: net loss of Euro 10.5 million or Euro 2.66 per share) - Positive cash flow of Euro 2.2 million (2001: Euro 4.3 million) and cash flow from operations of Euro 6.3 million (2001: Euro 8.7 million) - Improved financial position of Euro 18.2 million (2001: Euro 13.7 million): cash and cash equivalents of Euro 15.7 million and short-term financial investments of Euro 2.5 million - Shareholders' equity of Euro 27.9 million and equity ratio of 51.0% (2001: Euro 28.5 million and 56.1%).
End of ad hoc announcement
Issuer's information/explanatory remarks concerning this ad hoc announcement:
Business Highlights Fiscal 2002 - In comparison with fiscal 2001, revenues from the business unit Document Management rose by 6.8% while revenues from the Data Center Management unit decreased slightly by 1.5%. Revenues from Storage Management decreased by 10.6% year-on-year. - Despite a difficult trading environment, both the Data Center Management and the Document Management business units developed favorably, and were able to maintain and even surpass the profitability levels achieved in 2001. Fiscal 2002 operating income for the business unit Document Management amounted to Euro 1.5 million, while Data Center Management recorded operating income of Euro 4.2 million during the period. The Storage Management business unit recorded an operating loss of Euro 5.2 million. - Since the Storage Management business unit was not on track to meet its earnings target for the year, an appropriate action plan aimed at revitalizing this area of the business was implemented and completed in the course of fiscal 2002. Tantia's sales organization in Boulder (USA) was discontinued and all sales- related activities were taken over by the existing sales unit Beta Systems Software of America Inc. in Atlanta (USA). As a result of this rationalization, Beta Systems recorded restructuring expenditures of Euro 0.6 million. - In fiscal 2002, the Company launched a number of new products and product enhancements, such as the newly developed VIDiDOC® module Beta 93 UX, a component for cross-enterprise processing and distribution of print output under Unix and Linux. The first customers to participate in the joint development project were the IT specialists RAG INFORMATIK GmbH, BASF IT-Services GmbH, Festo AG & Co., and Andreas Stihl AG & Co.
Management Comments and Financial Outlook on Fiscal Year 2003 In commenting on the fiscal 2002 results, Karl-Joachim Veigel, CEO of Beta Systems, said: "With today's presentation of the annual results for the fiscal year 2002, it gives us great pleasure to announce that our Company has successfully completed its turnaround, and we are now looking forward to celebrating our 20th anniversary as a financially sound enterprise. For the first time since 1997 we have recorded a substantial pre-tax income and we are confident that the restructuring measures already implemented successfully in accordance with the "Eight Step" turnaround program will provide a good basis for increased earnings in 2003 and a solid foundation for a new, solid, and open Beta Systems. In addition, we expect the incisive restructuring measures applied to the Storage business to have a positive impact on our future performance."
Mr. Veigel added: "Under the aptly named heading 'Go Ahead Beta', our vision is - drawing on Beta Systems' in-depth experience and the established core competencies - to evolve our Company into a major infrastructure software vendor in Europe. We intend to achieve this objective by mobilizing our own resources, while realizing opportunities for targeted investments aimed at enhancing our technology, strengthening our product portfolio and our customer base. Our goals are ambitious, but they are also realistic, and we will pursue them with the same degree of commitment already demonstrated as part of our plan to achieve profitability that is sustainable in the long-term. With the launch of new server solutions for Unix data centers, the deployment of state-of-the-art Web technologies for the Internet integration of our products and the supporting of z/Linux for the pioneering connectivity of IBM high-performance mainframes with open operating systems the first milestones have already been reached. One further important step in this direction was the takeover of the operational business of SYSTOR Security Solutions GmbH based in Cologne, Germany, at the beginning of the new fiscal year."
Mr. Veigel concluded: "As a result of the acquisition, a significant increase in revenues to over 50 million Euro for fiscal 2003 is expected and a further and sustainable improvement of the pre-tax income. In view of the current political and economic uncertainties, we are unable to provide a detailed long-term outlook on revenue performance. The management of Beta Systems will continue to control business expenditure closely in line with the level of incoming orders during the year, in order to further improve the Company's earnings performance."
Press Conference Full and audited results for the fiscal year 2002 will be published under www.betasystems.com and distributed at the annual results press conference on March 20, 2003 at 11.00 CET in the headquarters of Beta Systems Software AG, Alt Moabit-90d, 10559 Berlin. A detailed review and explanation of results will be presented by the management board during this event.
Conference Call Alternatively, a conference call will be held by the management at 15.00 CET under the dial-in number: + 49 (0) 69 58 999 0509 (access code: "betasystems"). In addition, there will be an instant replay service available for 24 hours following the call. The instant replay telephone number is + 49 (0) 69 58 999 0532 (access code: 514162).
end of announcement euro adhoc 20.03.2003
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: Nemax All Share, Nemax Software
Börsen: Frankfurter Wertpapierbörse / Neuer Markt
Baden-Württembergische Wertpapierbörse / free trade
Berliner Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Hamburger Wertpapierbörse / free trade
Niedersächsische Börse zu Hannover / free trade