DGAP-News: IBS AG Increases Turnover and Profits Again in 2008

IBS AG excellence, collaboration, manufacturing / Quarter Results/Quarter Results

29.10.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------

- IBS America, Inc. improves Q3 turnover by 24 per cent
- Group EBIT margin reaches 10 per cent in Q3
- Liquid funds increase by 24 per cent to 5.2M EUR
- Volume of orders on hand increases by 12 per cent to 11.4M EUR

Hoehr-Grenzhausen, 29th October 2008 +++ IBS AG, a leading supplier of
cross-company standard software for industrial quality, production and
compliance management, achieved a sales revenue of  15.3M EUR (previous
year 14.5M EUR) in the first nine months of the 2008 financial year. The
EBIT 1.44M EUR for the first three quarters corresponded to an EBIT margin
of around 10 per cent (previous year 1.84M EUR). The period surplus for the
first nine months of 2008 amounted to 1.46M EUR (previous year 1.02M EUR),
which corresponded to earnings per share (EPS) of 0.21 EUR (previous year
0.15 EUR) and an increase of over 42 per cent.
Sales revenue amounted to 5.4M EUR in the third quarter of 2008, thus
reaching a similar high level to that of the previous year (5.7M EUR). The
earnings before interest and taxes (EBIT) amounted to 532K EUR (previous
year 1.3M EUR). The Cash Flow from operations rose by 162 per cent to 1.2M
EUR in the third quarter (previous year 458K EUR).
IBS America charts clear increase in turnover and profit
The Company’s American subsidiary IBS America, Inc. was able to report
vigorous growth. Substantial licence sales for its Compliance Management
solution to international companies such as Beam Global enabled the company
to achieve a sales revenue of 2.1M USD in the third quarter (previous year
1.7M USD). This corresponded to an approximately 24 per cent increase.
Compared to the same nine-month period of the previous year, IBS America,
Inc. achieved a 32 per cent increase in sales revenues to 6.1M USD
(previous year 4.6M USD) and EBIT rose from -19K USD during the same period
of the previous year to 555K USD. The recovery of the US Dollar against the
Euro had a positive effect on the quarterly consolidated Group figures. The
average USD to EUR exchange rate equated to 1.50 in the third quarter of
2008. During the second quarter of the current year, the exchange rate
averaged at 1.56.

Expansion of the Company’s headquarters and employee development
The third quarter saw the commencement of expansion and conversion work on
the Company’s headquarters. One of the company buildings thus far unused
was converted to create a further 20 new and modern workstations. In
addition, a further empty building was demolished in order to accommodate a
new car park. The demolition of the building required the special write-off
of company premises to the sum of 130K EUR, which burdened the Company’s
EBIT accordingly. These construction measures are designed to complete the
Company’s head office in Hoehr-Grenzhausen.

A further 10 new employees were recruited in the course of the third
quarter, bringing the total number of personnel employed by the software
company to 192.

Excellent shareholder’s equity resources and volume of operative cash flow
With further-increased shareholder’s equity to the sum of 13.4M EUR
(previous year 11.9M  EUR) and a shareholder’s equity quota of 63 per cent
(previous year 61 per cent), the Company possesses excellent liquid assets
in excess of 5.2M EUR (previous year 4.2M EUR) and an increase of 24 per
cent compared to the same period of the previous year. As such, IBS’
investment decisions are not subject to any bank dependencies. Cash flow
from operations rose by almost 100 per cent during the first nine months to
3.6M EUR (previous year 1.9M EUR).

Turnover and profit targets confirmed 
The high volume of orders on hand of 11.4M EUR as at 30th September 2008
(previous year 10.2M  EUR) rose by approximately 12 per cent compared to
the same period of the previous year and secured the software company’s
further growth. IBS remains on track to achieve its target sales revenue of
22M to 23M EUR with an EBIT margin of 12 to 14 percent, as announced at the
beginning of the financial year.

Further figures and details of the business development will be announced
in the full 9-month report on the www.ibs-ag.de web site on 7th November
2008.

Contact:
Nina Schroeder
IBS AG
Rathausstrasse 56
56203 Hoehr-Grenzhausen
Tel. 49 2624 9180424
Fax: 49 2624 9180966 


DGAP 29.10.2008 
---------------------------------------------------------------------------
Language:     English
Issuer:       IBS AG excellence, collaboration, manufacturing
              Rathausstrasse 56
              56203 Hoehr-Grenzhausen
              Deutschland
Phone:        02624/ 9180-424
Fax:          02624/ 9180-966
E-mail:       investorrelations@ibs-ag.de
Internet:     www.ibs-ag.de
ISIN:         DE0006228406
WKN:          622840
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Düsseldorf, Hamburg, München, Berlin, Stuttgart
End of News                                     DGAP News-Service
---------------------------------------------------------------------------