Beta Systems announces results for the Third Quarter of 2004
Berlin, November 8, 2004 - Beta Systems Software AG (Prime Standard: BSS, ISIN: DE 0005224406) announces its results for the third quarter and the first nine months ended September 30, 2004.
Financial Highlights for Third Quarter 2004, Beta Systems including Kleindienst
ˇ Increase in revenue by 100.4% to Euro 27.0 million (Q3 2003: Euro 13.5 million)
ˇ Non-recurring expenses of Euro 0.3 million associated with staff downsizing after Beta Systems takes over central administrative duties of Kleindienst Datentechnik AG
ˇ Slight operating loss of Euro 0.5 million (Q3 2003: operating income of Euro 1.7 million)
ˇ Pre-tax loss of Euro 0.5 million (Q3 2003: income before taxes of Euro 2.0 million)
ˇ Slight net loss of Euro 0.5 million or Euro 0.13 per share (Q3 2003: net income of Euro 0.9 million or Euro 0.22 per share)
Financial Highlights for First Nine Months 2004, Beta Systems including Kleindienst
ˇ Increase in revenue by 88.6% to Euro 67.1 million (9M 2003: Euro 35.6 million)
ˇ Exceptional items amounting to Euro 1.0 million due to non-cash expenses for stock options and issuing of employee shares in first and second quarter of 2004
ˇ Non-recurring expenses of Euro 0.9 million attributable to integration
ˇ Operating loss of Euro 2.1 million (9M 2003: operating income of Euro 0.6 million)
ˇ Pre-tax loss of Euro 1.5 million (9M 2003: income before taxes of Euro 1.4 million)
ˇ Net loss of Euro 1.5 million or Euro 0.37 per share (9M 2003: Euro 0.5 million or Euro 0.13 per share)
Financial Highlights for Third Quarter 2004, Beta Systems excluding Kleindienst (Pro Forma)
ˇ Decline in revenue by 14.0% to Euro 11.6 million (Q3 2003: Euro 13.5 million)
ˇ Operating loss of Euro 1.0 million (Q3 2003: operating income of Euro 1.7 million)
Financial Highlights for First Nine Months 2004, Beta Systems excluding Kleindienst (Pro Forma)
ˇ Revenue of Euro 35.4 million comparable to that generated in 9M 2003 (Euro 35.6 million)
ˇ Operating loss of Euro 3.6 million (9M 2003: operating income of Euro 0.6 million)
Comments of the Management Board
"We have been experiencing stiffer competition and downward pressure on prices within our operating business. Despite this challenging situation, towards the end of the third quarter we managed to outperform well-established competitors by securing a major ECM contract from one of Germany's leading IT service enterprises. Overall, however, the IT market remains volatile, particularly as it is still facing hesitant capital expenditure by customers. It is unlikely that we will see any fresh impetus from the economy in the coming months. Having said that, we are confident that several new projects will materialize in the near future, particularly within the area of Security Management, where demand remains buoyant. Indeed, this may lead to a number of large-scale business contracts in the fourth quarter of the year, traditionally a particularly strong period for our company," said Karl-Joachim Veigel, CEO of Beta Systems Software AG, commenting on the results.
"Operating against this backdrop, we are standing by our forecasts and remain confident that the revenue target of Euro 100 million for the Group will be attained for the year. However, if our fourth-quarter business follows the trend of the preceding quarters, our pre-tax profit margin is likely to be around 5%, which would be at the lower end of our original forecast for the year. This is also due to the exceptional items accounted for in our bottom-line results," added Karl-Joachim Veigel.
The Management Board will comment on the financial results for the third quarter of 2004 as part of a conference call to be held on Monday, 8 November 2004. The conference call will take place at 14:00 CET and can be accessed by calling +44(0)20 7984 7569 (Access Code: "betasystems"). A tape recording of the telephone conference will be available for twenty-four hours. This recording can be accessed by calling +44 (0)20 7984 7578 (Access Code: 877975).
The full quarterly report has been published under www.betasystems.com.
Beta Systems Software AG, Berlin, Germany
Beta Systems Software AG (Deutsche Börse - Prime Standard: BSS) is a leading provider of intelligent, high-performance solutions for the administration of bulk data. Beta Systems supplies software which enables companies to streamline and simplify their data center, backup, and document management processes. The company specializes in the automation and optimization of its customers' high volume data processing systems, focusing on handling, storing, and distributing data and documents in the most cost effective and intelligent way. Beta Systems' customers are typically large organizations in the industrial, finance, telecommunications, energy, service, and public sectors whose previous methods of data management involved cumbersome procedures consuming a great deal of time, money, and other resources. The solutions developed by Beta Systems have an open architecture and create an information infrastructure which considerably reduces the previous complexity of the customer's information management. Beta Systems' products are distributed worldwide by its own subsidiaries as well as partner organizations. For further information, please visit the company website at www.betasystems.com.
Beta Systems Software AG
Tel.: +49 (0)30 726 118 -170
Fax: +49 (0)30 726 118 -881
Stefanie Katrin Fehse
Beta Systems Software AG
Tel.: +49 (0)30 726 118 -674
Fax: +49 (0)30 726 118 -852