HEIDELBERG, Germany, March 18, 2002 (PRIMEZONE) -- Novasoft AG (security identification no. 677 890, Neuer Markt), is publishing the figures for the 2001 fiscal year at the press and analyst conference that is being held in Hanover today: revenues of EUR 68.7 million were generated in the past fiscal year (previous year: EUR 50.1 million). EBIT amounted to EUR 9.2 million (previous year: EUR 7.6 million) and EBITDA EUR 11.2 million (previous year: EUR 9.1 million). The net income per share by the DVFA/SG method was EUR 0.22 following EUR 0.20 in the previous year.
Novasoft was appointed a mySAP.com Alliance Partner at the beginning of 2001. The close relationship between Novasoft and SAP is a central element of the corporate growth strategy.
Novasoft performed excellently again in the past business year, in which the market environment was very difficult. The company continued to expand its position on the increasingly competitive IT service market. Novasoft reached its ambitious growth target of almost 40 percent in spite of the difficult environment. EBIT increased substantially by well over 20 percent. This growth was achieved consistently throughout all four quarters; the fourth quarter, in which many competitors suffered a slump, was very successful too. Revenues were up 31.9 percent over the same quarter the previous year and EBIT were 47.6 percent higher.
The Management Board attributes this good performance in a year of crisis mainly to the company's clear position. Thanks to its strategic focus on large customers with international operations, with whom Novasoft always develops a long-term business relationship, the company has succeeded in increasing its market share in a fiercely competitive segment for years now.
The number of subsidiaries outside Germany increased again: the company in Switzerland that was established in May is a new addition. The Spanish company Offilog Consulting S.L. in Barcelona, in which Novasoft holds a majority interest, opened another office in Madrid.
Revenues:
Novasoft continued to grow steadily: revenues increased by 37.2 percent to almost EUR 69 million. Domestic revenues went up by 48.5 percent to EUR 42.1 million, which represents about 61 percent of total revenues. Europe contributed EUR 17.7 million, while EUR 8.8 million came from countries outside Europe. Novasoft's profitable growth is attributable primarily to the company's concentration on big projects with large customers. Novasoft AG obtains these projects because of its high level of customer orientation and its comprehensive approach to consulting assignments that enables it to develop long-term customer loyalty.
Earnings:
Novasoft is still operating very profitably. EBIT improved by 21.1 percent to EUR 9.2 million (previous year: EUR 7.6 million). The EBIT margin was 13.4 percent. EBITDA increased by 21.7 percent to EUR 11.2 million. Consolidated net income amounted to EUR 4.0 million, which corresponds to growth of 10.4 percent. The financial result was depressed by EUR 1,051,000 due to a write-down in the value of the interest in RSI Solutions, LLC, San Francisco, U.S.A., while net income was reduced by EUR 863,000 and net income per share by EUR 0.05 because of this. As a result of the economic developments in the U.S.A. and the events on September 11, RSI made losses on lower sales. The current situation does not indicate that there will be a recovery in the short term. The company management therefore decided to write down the value of the shareholding.
Share/dividend:
The general situation on the market was reflected in the development of the Novasoft share price. It did, however, prove to be more resistant in the course of the year than the Neuer Markt as a whole. The share price dropped from EUR 8.10 at the beginning of the year to EUR 5.10 at the end. This reduction of 37 percent contrasted with a loss in value of 60 percent by the NEMAX All-Share index. The share price development was not encouraging even so and does not in any way reflect the fundamental quality of Novasoft AG. The Management Board and the Supervisory Board have therefore decided to use 45 percent of the net income generated for the dividend for the past fiscal year in order to emphasize the company's strength and profitability. The dividend for the 2001 fiscal year therefore amounts to 10 cents (previous year: 4 cents) per share.
Employees:
The growth recorded by the Novasoft Group led to a further increase in personnel. Novasoft had 466 employees at the end of the year (previous year: 362). The recruitment of roughly 100 further staff is planned in 2002.
Prospects:
The environment in which Novasoft operates has become more difficult. In view of its strategy, which has proved to be successful in times of crisis as well, the company is nevertheless very confident about the new fiscal year. Novasoft considers an increase of 25 percent in revenues and an EBIT margin of 12 to 15 percent to be realistic. The company plans to grow to the order of 1 000 employees in the next few years. The backlog of orders for 2002 is very good and extends until far into the third quarter. The conclusion of contracts about major projects with well-known companies in recent weeks make the management optimistic that the company will be able to reach its growth targets.
About the company:
Novasoft is one of the leading SAP consulting companies in Europe and has specialized mainly in large customers from the chemical/pharmaceutical industry, the retail trade, the automobile and manufacturing industries and the service sector. Novasoft has taken advantage of the excellent relationships it has developed with blue chip companies in Europe to become one of the leading SAP-based e-business suppliers within only a short time. The Novasoft Group consists not only of five German companies but also of further locations in England, Finland, Switzerland, Singapore, the U.S.A., Spain and the Czech Republic. The Novasoft AG share has been listed on the Neuer Markt at Frankfurt Stock Exchange since November 15, 1999.