• 391-0-0
25.03.2008

CENIT Group net income up 22 percent

CENIT Group net income up 22 percent

CENIT Switzerland with sharp sales and earnings raise

Hardware sales decreases 13 percent

Ad hoc disclosure in accordance with Article 15 of the Securities Trading Act

Stuttgart, November 9, 2006 – The CENIT Executive Board’s strategic decision to expand operations in the US in 2006 already results in profits after only 9 months, contributing positively to Group earnings. Despite rising marketing and expansion-related expenses, business has been accelerating dramatically for CENIT software and consulting services in the US PLM market, with CENIT North America posting sales of EUR 3.17 million (2005: EUR 1.14 million) and EBIT of EUR 0.28 million (2005: EUR 0.18 million). At the half-year mark, the company reported a loss of EUR 0.2 million. CENIT Switzerland also showed a significant growth with non-consolidated sales up 126 percent to EUR 2.15 million (2005: EUR 0.95 million) and EBIT rising to EUR 0.84 million (2005: EUR 0.02 million).

Continued progress in software marketing in the 3rd quarter fuelled CENIT’s profitable growth, though the operating loss accumulated in the first 9 months of the year in the hardware business weighed on earnings and the hardware sales decreased 13 percent. Restructuring measures were started in the hardware segment to address this situation. Hardware contributed 18% of consolidated sales, while software accounted for 26 percent and consulting 56 percent. Systematically growing our consulting staff since the start of the year from 523 up to 563 approximately represents an important step for the further organic growth of CENIT in line with our strategy. Another 30 positions approximately are still unfilled at this time.

Summary of consolidated reporting figures

Consolidated sales for the first 9 months rose by 7 percent to EUR 58.33 million (2005: EUR 54.51 million). Group gross margin expanded again by 12 percent to EUR 43.51 million (2005: EUR 38.77 million). Consolidated EBITDA was up approximately 12 percent to EUR 8.00 million (2005: EUR 7.13 million). Consolidated EBIT improved to EUR 7.28 million (2005: EUR 6.55 million/11 percent). Consolidated EBT came out at EUR 7.05 million (2005: EUR 6.43 million/10 percent) and Group net income increased 22 percent to hit EUR 5.62 million (2005: EUR 4.59 million). Earnings per share (EPS) on the basis of 8,367,758 shares came to EUR 0.67 (2005 adjusted to current number of shares: EUR 0.55/22 percent). Consolidated operating cash flow totalled EUR 7.67 million (2005: EUR 6.24 million/23 percent). Total consolidated assets of EUR 32.35 million (31.12.2005: EUR 33.91 million) were reported. The equity ratio improved to 67 percent (2005: 58 percent), with equity totalling EUR 21.65 million (31.12.2005: EUR 19.57 million) at the close of the period under review. Cash and cash equivalents including securities totalled EUR 16.40 million (31.12.2005: EUR 20.81 million) as of the statement date. Incoming orders for the Group were valued at EUR 61 million (2005: EUR 59 million).

Applying the POC (percentage of completion) method to the figures from the 2005 9 Month Report yields the following:

  • Sales EUR 54.8 million;
  • EBITDA EUR 7.45 million;
  • EBIT EUR 6.87 million;
  • EBT EUR 6.75 million;
  • EPS EUR 0.59.

 

Outlook

The CENIT Executive Board anticipates CENIT software sales to be the fastest growing over the long term, and to benefit particularly from the seasonal effect typically seen in the 4th quarter. Expansion plans for the US market will be driven forward in order to capitalise better on business opportunities there. The Executive Board views CENIT’s business prospects going forward as fundamentally positive across all core business areas and regions.

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