Quarterly Statement Q2 2016

ATOSS Software AG has continued to experience the dynamic development seen in the first quarter, with sales growth expanding further in the second quarter of 2016. Provisional figures show that the Munich-based specialist in workforce management recorded double-digit growth in the first six months of 2016 with sales rising 10 percent to EUR 23.9 million. With operating profits (EBIT) up 12 percent at EUR 6.2 million and an EBIT margin of 26 percent, ATOSS has once again demonstrated its profitability. With an excellent order book on hand, the Management Board has confirmed its sales and earnings outlook first forecast at the beginning of the year.

ATOSS Software AG remains on course for continued growth and is now recording sustained success for the eleventh year in succession. The robust development in business is not only proof of the pioneer role played by ATOSS in the market for demand-oriented personnel resource planning. It also confirms the continuously increasing importance of workforce management as a corporate Instrument.

Software sales in the first two quarters of 2016 came in at EUR 14.1 million, up 9 percent on the year before (EUR 12.9 million). This equates to 59 percent of the Group’s overall turnover. Software licensing developed particularly strongly, climbing 12 percent to EUR 5.2 million (previous year: EUR 4.7 million). Turnover in consulting, too, at EUR 6.7 million (previous year: EUR 5.8 million) was up by 14 percent, well above the figure for the same period last year and continuing a trend that has been evident for some years. Other income profited above all from the start-up and expansion of the Cloud business, rising to EUR 0.9 million (previous year: EUR 0.7 million).

There was also a further significant improvement in the order situation relative to the previous year’s high level. In the first half of 2016 ATOSS booked orders for software licenses and the software component of contracted Cloud solutions together amounting to EUR 6.4 million (previous year: EUR 4.7 million), an increase of 36 percent. Overall as of June 30, 2016 orders on hand for software licenses were up 17 percent over the year before at EUR 6.3 million. The growth in Cloud solutions was particularly significant, with orders on hand climbing 300 percent from EUR 1.0 million last year to EUR 4.0 Million.

Despite the sustained high level of investment in development activities and the expansion of sales and marketing, the earnings power of ATOSS is clearly demonstrated by the operating profit (EBIT) which rose by 12 percent to EUR 6.2 million coupled with the continuing attractive EBIT margin. With positive financial earnings of EUR 0.2 million (previous year: EUR 0.3 million), net earnings after tax amounted to EUR 4.5 million (previous year: EUR 4.0 million). Earnings per share in the first half came in at EUR 1.12, compared with EUR 1.00 last year.

Liquidity at the end of the first half stood at EUR 18.1 million (previous year: EUR 21.8 million). Even after paying a dividend totaling EUR 11.1 million on April 27, 2016 (regular dividend EUR 0.95 /special dividend EUR 1.85 per share), ATOSS still has substantial funds at its disposal, with an extremely sound balance sheet.

The sustained stability and profitability – coupled with an extremely positive market outlook – offer clear proof that the growth potential of ATOSS is still far from being exhausted. Looking ahead to the rest of this year, the Management Board therefore stands by its forecast for a continuing increase in sales and earnings on a par with the rate seen in 2015, within a corridor of +/- 3 percent.