OpenLimit Holding AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
12.11.2010 07:30
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Revenue increases by 36% in the first nine months of 2010 compared to the
same period in the preceding year to CHF 3.26 million. In the same period,
total income increases by 28% to CHF 5.77 million.
OpenLimit and impuls systems GmbH form a close strategic cooperation to
build an authentication server for electronic identity (eID) cards.
OpenLimit and ]init[ agree on a cooperation to offer eID service
providing.
OpenLimit and E&E information consultants AG have signed a partnership
agreement in order to provide a unique technology solution.
OpenLimit announces that starting 01.01.2011 the Group will switch its
financial reporting from Swiss Francs to Euro.
General Development
(Baar, Switzerland, November 12th, 2010) During the third quarter of 2010,
OpenLimit was able to successfully introduce the new electronic
identification (eID) server technology to the market. The eID server
complements the client solution 'AusweisApp' to enable secure
authentication / validation of the new ID card (nPA) in Germany. Since the
start of the testing phase for the new ID card, the eID server was tested
successfully by approximately 200 companies and public authorities as part
of a service provided by the Bundesdruckerei. Since November 1st, the
launch date of the new electronic identity card in Germany, OpenLimit's eID
server has entered live operation and can be purchased for commercial use.
Initial orders for the eID server from private and public institutions
demonstrate the strong interest in the new ID card and the security
infrastructure behind it.
With the order of an eID server by impuls GmbH, OpenLimit was able to
initiate a considerable business relationship in the insurance market. The
assignment will run for several years and includes consulting, planning and
implementation of an eID server, which allows easier, faster and more
secure online authentication for the customers of impuls based on the new
ID card. In addition OpenLimit was able to win further public
administration customers for the eID server among the Federal States in
Germany.
Also of great importance is the cooperation between OpenLimit and ]init[
GmbH as well as with the Bundesdruckerei to establish services in
connection with the eID-server. From now on customers can subscribe to a
highly secure eID-service provided by Bundesdruckerei and ]init[ for
eGovernment and eBusiness applications. Furthermore, on October 28th
OpenLimit set up a cooperation with Siemens in relation to eID-servers and
services.
Moreover OpenLimit was able to sign a partnership agreement with E&E
information consultants AG. Through the combination of both companies'
respective know-how, a unique technology solution, which combines automatic
document creation with electronic signatures, was developed.
After the reporting period, OpenLimit accomplished another important
milestone in delivering the AusweisApp, the application software for the
new ID card, on schedule. This event marks the beginning of the eID era in
Germany and the successfully initiation of the first e-card project in the
country. For OpenLimit, it creates a solid base for future revenues across
industry and public sectors.
Financial development of the OpenLimit Group
During the first nine months of 2010, OpenLimit generated revenues of CHF
3.26 million, an increase of 36% over the same period of the previous year
(9-months 2009: CHF 2.39 Mio.). For the same period total income grew by
28% from CHF 4.51 million to CHF 5.77 million. As of September 30th, 2010,
OpenLimit had 58 employees, compared to 55 employees twelve months earlier.
Due to the hiring of new employees and, in particular, our policy to deploy
contract workers for specific non-core tasks in order to maintain a lower
fixed cost base, personnel expenses increased by 65% to CHF 5.35 million
(9-months 2009: CHF 3.17 million). As expected, depreciation and
amortization charges increased by 27% to CHF 1.85 million, mostly due to
the activation of company produced additions to software development, which
is amortized over five years. In the first nine months, operating
expenditures increased by 14% to CHF 1.66 million to support growth in
personnel, but also as a result of higher expenditures for marketing and
investor relations. Because of substantial upfront investments during the
first nine months of the current financial year, an EBITDA of CHF -1.19
million and an EBIT of CHF -3.04 million resulted. The weakness of the Euro
relative to the Swiss Franc yielded a negative financial result of CHF
-0.65 million. Since both our earnings and expenditures are mostly
denominated in EUR, cash flow streams are well matched, but the Company has
to record a foreign exchange loss when translating results back into Swiss
Francs. As a consequence and to enhance transparency, OpenLimit will start
reporting in Euro from the 1st of January 2011. At the end of the first
9-months, OpenLimit is looking at a net loss of EUR -3.74 million. Due to
the fact that several major projects can only be settled in the fourth
quarter - for instance the AusweisApp with the recent handover on November
1st, we will be able to book a significant part of our revenues during the
last 3 months of the year. Therefore, we maintain our forecast for 30%
revenue growth for the fiscal year 2010.
As of September 30th, non-current assets recorded an increase by 30% to CHF
5.64 million relative to the same date last year, particularly due to the
capitalization of company produced additions to software development.
Working capital management improved as well during the last 12 months.
Current assets overall decreased slightly by 4% to CHF 4.87 million, thanks
to a considerable reduction by 28% in trade and other receivables to CHF
3.47 million, while liquid assets increased considerably to CHF 1.12
million. Current liabilities declined by 58% to CHF 0.41 million. Equity
was strengthened by 16% from CHF 8.44 million as at 30.9.2009 to CHF 9.83
million.
Since the closing of the third quarter, the amount of outstanding shares
has increased to 18'106'885 shares (as at September 30, 2010: 18'086'885
shares) as a result of one employee exercising his options (20'000
options). Consequently, our share capital increased by CHF 6'000 from CHF
5'426'065.50 to CHF 5'432'065.50.
On 1.7.2010, a total amount of 695'000 options with a strike price of EUR
1.31 were given to the management and executive board members within the
scope of the option program. These new options have a vesting period of
three years, with one third of the options vesting each year. As a result
of the new options issued, personnel expenses increased by CHF 0.07 million
in the 3rd quarter.
For further financial figures please visit:
http://www.openlimit.com/en/about-openlimit/investor-relations-eng/publica
tions/financial-reports.html
Technical Development
In the 3rd quarter our engineers focused on the continued development of
the AusweisApp to ensure that the software would be ready for release on
November 1st. Online identification functionality, user friendliness and
accessibility were reviewed and modified. . At the same time, the
certification process according to the international standard Common
Criteria and usability tests were continued.
Besides the ongoing development work, another test version of the
AusweisApp was released to participants of the application test.
Furthermore, numerous modifications were included into the current
AusweisApp version as a result of change requests, user feedback and
revisions of technical guidelines.
In context of the development cooperation with Fujitsu Technology Solutions
(FTS) for the SecDocs product, a new version of the components MigSafe /
OverSign and an update of the OpenLimit version 3 was delivered to the
partner. In the course of the development process, a customer pilot phase
is in the planning stage by FTS.
A major focus was the coordination and review of OpenLimit components in
terms of requirements which were formulated by FTS in the implementation of
the product SecDocs. This not only includes functional requirements, but
also the revision of the OpenLimit middleware concerning the planned
introduction as a server product.
The product S-TRUST Sign-it, which is distributed by the German
Sparkassenverlag (DSV), was handed over to DSV in a new product version
that supports other smart cards as well. Currently, the completion of the
evaluation process and the grant of security certification by the
instructed inspection authority are pending.
The eID server was further enhanced within the scope of the overall product
development effort. For instance, the eID server was revised based on new
requirements issued by the Federal Office for Information Security (BSI)
and thus now supports the technical guideline TR-03 130 in the latest
specification level.
In addition to these key development topics, the daily tasks in the
technical area with respect to software maintenance and support, which
shall not be detailed further, have been realized.
Outlook
The encouraging development in the eID market and a significant upswing in
the demand for server technologies for electronic authentication and
signature processes confirm the validity of our medium and long-term
strategy. OpenLimit will focus its efforts and partner activities on the
development of further server technologies which will be a major revenue
driver. The joint development of the eID server together with the
Bundesdruckerei, as well as the beginning of certification of the Fujitsu
technology SecDocs, based on OpenLimit middleware technologies for
long-term storage, are good examples of this.
OpenLimit also expects that existing cooperations can be extended to form
strategic partnerships, where OpenLimit's products form an integral part of
our partners' offering, and that new partnerships will follow as the market
expands. This will also support the internationalization of the business.
For 2010, we still anticipate a revenue increase of 30% compared to 2009
and aim to achieve a positive operating result for the full year. However,
this is very much dependent on potential exchange rate losses by the year's
end, especially from the conversion of Euro to Swiss Franc, which already
burdened the bottom line substantially at the end of the first 9-months.
With the rollout of the new identity card in Germany and the related
software environments for both end users (AusweisApp) and institutions (eID
Server) developed by OpenLimit, we have already achieved significant
milestones this year and at the same time have overhauled our product range
completely in the last 12 months. Based on our existing products, a highly
motivated sales team and strong technology and distribution partnerships we
believe the platform for enhanced revenue growth for the upcoming years is
finally in place. The further development of our technologies in the next
year should ensure that the technological advantage of the OpenLimit Group
is preserved.
About OpenLimit
OpenLimit Holding AG is an internationally leading provider of certified
software for electronic signatures and identities. Our software components
can easily be integrated into existing applications, enable the efficient
management of electronic documents, media-consistent workflows and process
optimization in all business areas. Maximum security and legal validity are
the outstanding features of the software solutions on offer. OpenLimit
holds the very first certification recognizing compliance with the most
stringent international security standard for software products, Common
Criteria EAL4+.
For further information, please visit: http://www.openlimit.com
Investor Relations Contact
OpenLimit Holding AG
Christian Fuessinger
Zugerstrasse 76b
CH-6341 Baar
Tel: +41 41 560 1020
Fax: +41 41 560 1039
E-Mail: ir@openlimit.com
Legal
This announcement contains forward-looking statements. Forward-looking
statements are statements which do not describe past facts; they also
include statements on our assumptions and expectations. Every statement in
this press release that presents our intentions, assumptions, expectations
or forecasts (as well as the underlying die assumptions) is a
forward-looking statement. These statements are based on plans, estimates
and prognoses currently available to the OpenLimit Holding AG board of
management. Forward-looking statements therefore only refer to the day on
which they are made. We do not assume an obligation to develop such
statements any further in view of new information or future events.
12.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: OpenLimit Holding AG
Zugerstrasse 76 b
6341 Baar
Schweiz
Internet: www.openlimit.com
End of Announcement DGAP News-Service
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DGAP-IRE: OpenLimit Holding AG: Group Interim Announcement within 2nd Half-Year of 2010
| Source: EQS Group AG