DGAP-News: FJH AG:Positive development remains stable in first quarter of 2008

FJH AG / Quarter Results

27.05.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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FJH: : Positive development remains stable in first quarter of 2008

  - Q1 2008 turnover: 15.2 million Euro (+3% on preceding year)

  - Q1 2008 EBIT: 1.0 million Euro; reduced through one-off special
    effects 

  - Q1 2008 cash flow from operating activities: 0.5 million Euro (+1.1
    million Euro on preceding year)
Munich, 27 May 2008 – In the first quarter of 2008 FJH AG (ISIN
DE0005130108)continued its pleasing progress of the preceding year. During
the quarter under review, the Company’s restored earnings capacity was
again reflected in a positive cash flow from operating activities, which
was significantly up on the corresponding figure in the preceding year.

At 15.2 million Euro, consolidated turnover for the quarter just ended was
3% up on the figure for the same quarter in the preceding year. In this
connection, it is especially important to note the high proportion of
turnover from services. Although the Company's business experienced the
usual seasonal fluctuations in turnover from licences, an overall moderate
increase was recorded due to a 17% rise in turnover from services (from
11.1 million Euro in the same quarter in 2007 to 13.0 million Euro). The
good level of capacity utilisation in the first quarter was also reflected
in the key performance indicator of annualised turnover per employee, which
rose 4% to 129 thousand Euro compared with 124 thousand Euro in the same
quarter in the preceding year.

In the first quarter of 2008, total expenses (including
depreciation/amortisation and other operating income and expenses) before
interest and taxes amounted to 14.3 million Euro, 518 thousand Euro (3.6%)
up on the corresponding figure for the preceding year. This increase in
expenses was largely due to two special effects. The early departure of CFO
Stephan Schulak triggered an agreed settlement of 249 thousand Euro.
Without this effect, personnel expenses were slightly lower than the
preceding year. The weakness of the US dollar also produced an
exchange-rate related expense of around 150 thousand Euro.

Earnings before interest and taxes (EBIT) were 1.0 million Euro. Excluding
the aforementioned special effects of around 0.4 million Euro, EBIT would
have been roughly on a par with the preceding year at 1.4 million Euro.
Consequently, the EBIT margin (calculated on the basis of turnover) for the
first quarter of 2008 was 6.7% (Q1 2007: 9.3%).

The result after taxes was 0.8 million Euro (preceding year: 1.0 million
Euro), which equates to earnings per share of 0.04 Euro (Q1 2007: 0.05
Euro). At the end of the reporting period cash and cash equivalents
amounted to 18.8 million Euro. The number of employees rose 2% from 467 at
the end of March 2007 to 474 on 31 March 2008.

Development of business:
The good level of incoming orders also continued in the first quarter of
2008. During the period under review, for example, the Company increased
secured turnover (actual turnover + orders on hand + weighted existing
canvassing projects with a likelihood of conclusion > 80%) for 2008 to
51.7 million Euro, representing a rise of 11 million Euro over the position
at the start of the year. The secured turnover base for the current fiscal
year is thus around 6% up on the corresponding value in the preceding year.

Alongside the numerous successes in day-to-day operating business (e.g.
continuing pleasing business in the US and successful productive rollouts
for new product releases, installation and migration projects), customers
have shown promising interest in the Company’s strategic programme, the FJA
Insurance Platform. The Executive Board now believes there is a good
overall basis for revitalising interest in FJH AG on the capital market.

Outlook:
In terms of forecasts for the 2008 fiscal year, the Company’s assumption
that the current financial crisis will not have a significant negative
impact in the investment behaviour of the insurance sector is holding true.
The Executive Board therefore stands by its forecasts of total revenues of
between 64 and 68 million Euro and an EBIT margin of over 10% for the 2008
fiscal year.

About FJH:
FJH AG is a leading supplier of software and consulting for the insurance
industry and other financial services. Under its brand name FJA the FJH
Group offers a broad range of software solutions to support insurance
companies and pension providers in all key areas and issues. Products
include policy administration systems, process and document management
software and point-of-service solutions through to systems for asset
liability management and corporate management.

FJH has longstanding business relations with around half of all life
insurers in Germany for whom it has successfully implemented numerous major
projects over the last 28 years; its clients also include renowned health
and non-life insurers. Globally, FJH’s software is used for 26 countries on
five continents, including the USA and Australia and a number of Eastern
European countries.

Currently, the FJH Group employs around 450 people at its head office in
Munich, its German offices in Hamburg, Cologne and Stuttgart and its
subsidiaries in Switzerland, Austria, the USA and Slovenia.

The Company was founded in 1980 and has been listed on the Frankfurt Stock
Exchange since February 2000. FJH AG was included in the Prime Standard
index in January 2003.
DGAP 27.05.2008 
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Language:     English
Issuer:       FJH AG  Elsenheimerstraße 65
              80687 München
              Deutschland
Phone:        +49 (0)89 769 01-0
Fax:          +49 (0)89  769 88-13
E-mail:       investor.relations@fjh.com
Internet:     www.fjh.com
ISIN:         DE0005130108
WKN:          513010
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News                                     DGAP News-Service
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