• 394-0-0
14.06.2006

CENIT still on track for success

Earnings per share rise to 84 cents in first six months of 2006

 

Software accounts for 26% of total sales

US business significantly ahead of forecasts

Consolidated earnings improve 41% to €3.5 million

Ad hoc disclosure in accordance with Article 15 WpHG

Stuttgart, August 14, 2006 – CENIT’s (ISIN:DE0005407100) earnings for the first half of the year again emphasise the ongoing positive trend of the last few quarters. CENIT increased the share of third-party and own software sales to 26% of total sales. The share of sales of consulting services was 57%, rising by around 9% against 2005. In line with forecasts, the share of hardware business declined further, recording a 22% sales reduction as against the previous year to currently €6.3 million. As a result, the share of hardware in Group sales is now down to 17%. The first half of 2006 closed with strong growth of 41% in consolidated earnings, bringing the figure to €3.5 million.

Sales of CENIT software have now become a significant earnings driver. In addition, there is continuing strong demand for CENIT’s high-end consulting services. Expansion in the US in particular is surpassing all expectations. Key PLM orders for the production industry were acquired on this market, as a result of which CENIT North America generated sales of €1.3 million (2005: €0.7 million) and an EBIT of €- 0,2 million (2005: €0.09 million). Developments were also clearly positive at CENIT Switzerland. With non-consolidated sales of €1.5 million (2005: €0.7 million), CENIT Switzerland generated EBIT of €0.5 million (2005: €- 0.06 million).
The software sales cooperation with FileNet for CENIT’s own software solution in the monitoring area also continued to enjoy commendable ongoing success. The success with this solution is not just limited to the US, as the first successful software deals were also concluded in South Africa in the first half of the year.

Group sales in the first six months rose by 7% to €37.41 million (2005: €34.91 million). Consolidated gross profit climbed by 13% to €28.99 million (2005: €25.62 million). EBITDA for the Group was up by around 24% to €5.26 million (2005: €4.25 million). Group EBIT improved to €4.75 million (2005: €3.86 million/23%). while Group EBT amounted to €4.52 million (2005: €4.05 million/12%) and consolidated earnings to €3.50 million (2005: €2.49 million/41%). Basic earnings per share (EPS) were calculated at €0.84 (2005: €0.59/42%). The Group’s operating cash flow was €5.12 million (2005: €4.47 million/15%). Total assets amounted to €35.14 million (31 December 2005: €33.91 million). The equity ratio was 55%, while equity itself amounted to €19.45 million (31 December 2005: €19.57 million) as of the end of the period under review. At the balance sheet date, cash and cash equivalents including securities were down to €15.21 million (31 December 2005: €20.81 million/-27%). This decline was due to the fact that CENIT paid dividend of €3.8 million. Incoming orders in the Group remained constant at €46 million (2005: €46 million).

Using the POC (percentage of completion) method, comparative figures for the first half of 2005 would have been:

  • sales of €35.12 million;
  • EBITDA of €4.46 million;
  • EBIT of €4.07 million;
  • EBT of €4.26 million;
  • EPS of €0.64.

Outlook

The Executive Board of CENIT is pursuing the long-term expansion of the Company’s market position and a sustainable increase in market share. The Executive Board is forecasting that business with CENIT software will see strong growth again in the second half of the year. The increasing significance of CENIT software in conjunction with its highly qualified consulting services in the three IT growth markets - Product Lifecycle Management, Enterprise Content Management and Application Management Outsourcing – should continue to improve the Company’s position in the coming years.

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