PARIS, Sept. 6, 2001 (PRIMEZONE) -- BVRP Software (Paris Stock Exchange:BVRP) BVRP Group's turnover for the financial year 2000/2001, to be published on September 14th, will not meet initial objectives due to the lack of growth during the fourth quarter compared to the preceding quarter, (excluding change in scope).
After integration of the AB Soft Group from June 1, 2001 and exclusion of Lab Production, subsidiary sold in May, the turnover for the 12 months ending on July 31st, 2001, will be close to FRF 234 million (Eur 35.7 million) compared to an initial objective of FRF 280 million (which included FRF 42 million from Lab Production).
Regardless of the deconsolidation of Lab Production, the effects of the economic slowdown noticed in Europe during the third quarter increased during the fourth quarter, particularly affecting the software activity in Europe and, to a lesser extent, in the United States.
BVRP Group's results will be impacted by the absence of growth during the second half of the year and will be significantly below objectives. However, the operating result will be positive.
The slowdown noticed over the last 5 months do not call into question the Group's development plans, which are simply delayed. After 7 years of profitable growth, the BVRP Group's Management made the assessment of the business slowdown affecting the whole sector, as it was already the case in 1992 and in 1993. BVRP is currently taking all necessary actions in order to insure that the company will not be impacted by the unfavorable economic situation for more than a year and to allow a return to profitable growth in 2002.
In addition, BVRP is having well advanced discussions for the acquisition of a software republisher located in the UK. This acquisition, complementary to the one of AB Soft, should be completed before the end of September. The financing will entirely be provided by the issuing of convertible bonds voted by the Shareholders Meeting held on July 10th 2001.
This issuing of convertible bonds, amounting to Eur 5 million, will also increase the already significantly positive net cash position of the Group, and allow the continuation of the external growth plan.
Annual results 2001 and forecasts for the financial year 2002 will be released on October 24th, 2001.