CIMdata PLM Industry Summary Online Archive

8 August 2007

Financial News

CENIT Earnings Before Tax Grow by 10% to 4.95 m €

Traditionally, the demand for consultancy and services has a strong impact on CENIT AG's 2ndQuarter, just as expenditures for hiring and attracting new employees, whose number is set to grow by more than 10% over the current business year. On the balance-sheet date, CENIT employed 578 staff members world-wide (2006: 544). Currently, a total of 100 vacant positions are waiting to be filled. The expansion of our software product portfolio and the necessary internationalization of our business require additional strategic investments; these have been initiated over the past months. Among them is the establishment of a company in Toulouse, France, in close proximity to EADS Airbus, as well as the faster-than-expected expansion of staff numbers in Romania, where a total of 14 staff members are now employed. In addition to a very strong 1st Quarter, sales and earnings by CENIT's product business should be expected during the 4th Quarter, particularly with regard to the sales cooperation with IBM/FileNet. For its part, IBM now projects software sales for the second half of the year, due to the integration of FileNet.

Overview of Semi-annual Figures for 2007:

After 6 months, consolidated sales have increased slightly to a current 38.05 m € (06/2006: 37.41 m € / 2%). The gross surplus is 29.49 m € (06/2006: 28.99 m € / 1,7%). During the reporting period, EBITDA attained 5.21 m € (06/2006: 5.26 m € / -1.6%), EBIT attained 4.68 m € (06/2006: 4.75 m / -1.5%). Pre-tax EBT grew by 10% to 4.95 m € (06/2006: 4.52 m €). A significantly higher tax ratio of 37% during the 2nd Quarter (2006: 23%) led to a consolidated result of 3.11 m € (06/2006: 3.50 m €). The Group's EPS thus reached 0.36 € per share (06/2006 adjusted: 0.42 €). On June 30, 2007, shareholder equity amounted to approx. 23.41 m € (12/2006: 24.3 m €), accounting for an equity ratio of 66% (12/2006: 62%). On balance-sheet date, the total of bank deposits and securities incl. current assets amounted to 14.9 m € (12/2006: 18.7 m €). June 21, total dividends of 4.2 m. € were paid out to shareholders. Operative cash flow amounts to 6.26 m € (06/2006: 5.12 m €).

Results for 2nd Quarter 2007

During the 2nd Quarter of 2007, CENIT Group achieved sales of 20.4 m € (06/2006: 18.2 m € / 12%). Gross profits amounted to 13.85 m € (06/2006: 14.19 m € / -2.5%). EBITDA attained 1.93 m € (06/2006: 2.38 m € / -19%). 2nd Quarter earnings before interest and taxes amounted to 1.66 m € (06/2006: 2.15 m € / -22.8%). EBT amounted to 1.80 m € (06/2006: 2.08 m € / -13.5%), and the Group result for the 2nd Quarter is 1.11 m € (06/2006: 1.53 m €). The Group EPS reached 0.13 € per share (06/2006 adjusted: 0.18 €).

Breakdown of Sales

The sales volume of the service sector increased by 4% to currently 22.16 m € (06/2006: 21.32 m €), making it the strongest contributor to sales (58%). During the first 6 months of the current business year, CENIT software turnover amounted to 5.96 m € (06/2006: 6.20 m € / -4%). Thus, approx. 16% of total sales can be attributed to CENIT's proprietary software. Sales of non-CENIT software increased by 14% to 4.03 m € (06/2006: 3.54 m €), thus accounting for 11% of total turnover. The hardware business contracted by 7% to 5.90 m € (06/2006: 6.34 m €). As at balance-sheet date, this equalled approx. 15% of total CENIT turnover.

Orders

As at 30 June 2007, Group-wide orders on hand have increased by 21% to currently 22 m € (12/2006: 18.2 m €). Incoming orders amounted to approx. 46 m € (6/2006: 46 m €). During the 2nd Quarter, the total share of new customers was 5%.

Outlook

CENIT's Executive Board expects that CENIT and its partners IBM/FileNet, SAP and Dassault will be able to increase earnings in the software sector as projected, particularly during the second half of the year. The process of internationalization and the consistent increase in staff will continue in the future. The assessment of business opportunities remains positive, and all efforts will be undertaken to fill the currently vacant, approx. 100 positions worldwide for software specialists, engineers and consultants within the current year.

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