• 395-0-0
11.05.2006

CENIT achieves sales growth and increased earnings in Quarter 1 2006

Broad growth in the consulting and software segments

 

19% sales growth to €19.18 million

Operating results climbs from €1.60 million to €2.61 million

Pleasing development in new customers and orders received

Adhoc release pursuant to Article 15 of the German Securities Trading Act (WpHG)

Stuttgart – May 11, 2006 – 08:00 a.m. – The 2006 financial year began well once again for CENIT (ISIN:DE0005407100). The first quarter was characterised by strong sales and earnings growth, which was driven by our software solutions, consulting services and the marketing of CENIT software via the sales channel of our partner FileNet. Both foreign subsidiaries are on track to meet expectations and considerably improve their contribution to the CENIT Group. Development of orders and sales is particularly pleasing in Switzerland. Group sales were up by 19% to €19.18 million (2005: €16.11 million). Gross income in the Group reached €14.80 million (2005: €12.17 million/ 22%). EBITDA increased by around 63% in the Group to €2.88 million (2005: €1.77 million). Group EBIT was up by €1 million to €2.61 million (2005: €1.60 million/ 63%). Group EBT totalled €2.44 million (2005: €1.68 million/ 45%) and consolidated earnings amounted to €1.97 million (2005: €1.07 million/84%). Basic earnings per share (EPS) were €0.47 (2005: €0.26/81%). Operating cash flow totalled €2.18 million in the Group (2005: €1.14 million/91%). The consolidated balance sheet total was €37.44 million (31.12.2005: €33.91 million). The equity ratio remained unchanged at 58%. Equity amounted to €21.62 million at the end of the reporting period (31.12.2005: €19.57 million). Cash and cash equivalents, including securities, totalled €22.10 million as at the reporting date (31.12.2005: €20.81 million). Orders received by the Group were up by 8% to €31.2 million (2005: €29.0 million).

Notes on accounting methods according to IFRS

With effect from the start of this year, income from services is carried using the POC (percentage of completion) method for the first time, based on the extent to which they have been completed in accordance with IAS 18.22 ff. This concerns the periodic consideration of expenses and income during the completion time of the service project. The comparative figures from the first quarter of 2005 using the POC method would thus be as follows: sales €16.03 million; EBITDA €1.70 million; EBIT €1.52 million; EBT €1.60 million; EPS €0.24.

Outlook

The Executive Board of CENIT is optimistic that the company will continue to generate growth in the medium-term by focussing on the consulting and software segments for product lifecycle management, enterprise content management and application management and through the international marketing of CENIT software. This optimistic outlook will be accompanied by a corresponding staff expansion, which currently includes plans for 60 vacancies, primarily in the consulting segment.

Forward-Looking Statements This news release may contain forward-looking statements about the business, financial condition, results of operations and earnings outlook of CENIT Words such as "may,""will," "expect," "anticipate," "contemplate," "intend," "plans," "believe,""continue" and "estimate," and variations of these words and similar expressions, identify these forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which CENIT expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks.

Please contact:

CENIT AG Systemhaus
Prime Standard Listing - ISIN DE0005407100
Fabian Rau
Vice President Investor Relations & Marketing
Industriestraße 52-54, D-70565 Stuttgart
Tel.:  +49 711 7825-3185
Fax:  +49 711 782544-4185
E-Mail: info@cenit.de

Tanja Marinovic

Tanja Marinovic

+49 (0)711 7825 3320
aktie@CENIT.de