Quarterly Statement Q3 2015

ATOSS Software AG remains on course for continued growth. Provisional figures at the end of the first nine months of 2015 again signal new records in all key figures. Consolidated sales were up by a substantial 15 percent at EUR 33.1 million. And despite significant investments for the future, ATOSS has again posted an increased result, with operating profits (EBIT) 18 percent higher at EUR 8.4 million and a margin on sales of 26 percent, up from 25 percent last year. Once again the company has been successful in continuing its dynamic growth and extending its profitability. The outlook for the last quarter of 2015 and beyond is also extremely promising with orders on hand for software licenses valued at EUR 6.0 million. In view of this development, the Management Board is confident that by the year-end ATOSS will report new record performance for a tenth year in succession.

The figures posted by ATOSS Software AG for the first nine months of 2015 underscore both the company’s seamless continuation of the past nine record years as well as its ability to step up its dynamic rate of growth. Once again the ATOSS business model has proven to be extremely robust and successful. The substantial growth in sales offers clear evidence of the competitive strength of ATOSS, as well as illustrating the steadily increasing importance of workforce management in the field of professional business management.

With overall Group turnover totaling EUR 33.1 million, sales of software licenses – the driving force behind the company’s growth – increased by 16 percent during the reporting period. The consistent positive development in software maintenance over recent years was also sustained, with sales up 10 percent at EUR 12.5 million. As a result, turnover in software amounted to EUR 19.6 million, representing a proportion of 59 percent of consolidated revenues (previous year: 61 percent). In the field of consulting – supported by the excellent order situation for implementation services following the sale of licenses – ATOSS saw turnover increase by 19 percent to EUR 8.8 million. Hardware sales amounted to EUR 3.5 million (previous year: EUR 3.1 million), while other miscellaneous sales came in at EUR 1.2 million, up by EUR 0.4 million over the year before.

Despite significantly higher investments, particularly in research & development, and higher personnel costs resulting from the capacity increases in sales and customer services, the operating profit (EBIT) improved by 18 percent to EUR 8.4 Million.

In order to limit the negative effects of a falling gold price, during the third quarter the Group sold the bulk of the gold it had held for investment purposes. Consequently as of September 30, 2015 the company reported mildly positive financial earnings of kEUR 32 (previous year: kEUR 366). Earnings before taxes (EBT) at EUR 8.5 million were 13 percent higher than in the year before, while net income was 12 percent higher at EUR 5.7 million. As a result, ATOSS reported earnings per share of EUR 1.44 for the first three quarters (previous year: EUR 1.29).The return on sales measured against EBIT amounted to 26 percent, slightly above the Management’s expectations for the reporting period.

The financial situation was once again substantially improved, with cash flow from operations climbing 19 percent to EUR 10.3 million (previous year: EUR 8.6 million). Even after paying a dividend of EUR 0.88 per share (EUR 3.5 million) on April 29, 2015, as of the end of the third quarter ATOSS reported net liquidity of EUR 27.0 million (previous year: EUR 21.1 million). In combination with an extremely sound equity position, ATOSS offers a sustained high level of security and excellent future prospects for customers, employees and shareholders.

The Management Board continues to expect the highly positive development in business to be maintained in the remainder of financial year 2015 and anticipates another record year. Following the highest third-quarter order intake in the company’s history at EUR 3.0 million, at the end of nine months ATOSS had booked licensing orders valued at EUR 7.6 million (previous year: EUR 7.1 million). Orders on hand for software licenses stood at EUR 6.0 million (previous years: EUR 4.5 million), providing a first-class basis for further success. Taking into account scheduled investments in the development of new markets and the high level of expenditure equal to around one fifth of sales on research & development, the company continues to expect an EBIT margin in the order of 25 percent.