IDS Scheer AG / Quarter Results
28.04.2009
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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Financial figures of the first quarter of 2009 (unaudited)
IDS Scheer doubles EBITA to EUR 8.2 million and earnings margin to 9.1%
with quarterly sales of EUR 90.2 million
* EBITA doubled and net earnings increased by 95%
* Early reorganization and reorientation allow for significant cost savings
* Bundling of consulting and product area ensures a comprehensive process
optimization solution offering for customers
* Innovation campaign to expand ARIS product range
* Supervisory Board and Executive Board resolve dividend proposal of EUR
0.22 (previous year: EUR 0.22) per share
*'Executive Board reiterates forecasts for 2009
Saarbruecken, April 28, 2009
In the first quarter of 2009, IDS Scheer AG generated sales of around EUR
90.2 million as against EUR 94.3 million in the same quarter of the
previous year. This corresponds to a decline of 4.3% or of 3.8% after
adjustment for currency translation effects. Earnings before interest,
taxes and amortization of intangible assets (EBITA) rose to EUR 8.2
million, double the previous year's figure of EUR 4.1 million. The EBITA
margin more than doubled to 9.1% after 4.4% in the previous year. EBIT
surged by 111% to EUR 7.7 million. Net profit for the quarter soared by 95%
to EUR 4.8 million. Earnings per share (undiluted) moved up from EUR 0.07
in the same quarter of the previous year to EUR 0.14.
As of March 31, 2009, IDS Scheer AG had 2,836 employees worldwide as
against the 3,083 as of the previous year's reporting date. This
corresponds to a decline of 8% as a result of the consolidation measures in
the context of the company's global reorganization. 58% of employees work
in the DACH region, 27% in the EMEA region, 9% in the Americas region and
6% in the Asia-Pacific region.
Thus, IDS Scheer AG began the new year with a strong business performance
and increased earnings more than externally expected. The sales performance
and the increases in earnings are the result of the global reorientation of
the company and the early adjustment to the difficult market environment.
The aim of the first phase was the internal restructuring with measures to
lower costs and improve earnings and has already been completed. The
restructuring measures implemented have allowed annual cost-cutting
potential of around EUR 12 million. In the second phase, the reorganization
will focus on strengthening market processing and the transformation into
high quality BPM (business process management) solutions. By merging the
products and consulting areas, IDS Scheer's customers are profiting from
end-to-end support in analysing and improving their business processes in a
sustainable manner. The innovation campaign planned for 2009 is geared
towards broadening the product range of ARIS, the world's leading software
solution for business process management, enhancing user-friendliness and
expanding the use of ARIS within companies. The innovations announced
include new products such as ARIS Governance Engine, ARIS Rocket Search
(search engine), ARIS Express, ARIS Mashzone (performance mash-ups) and
uBPM (user-centric). In addition, IDS Scheer is launching 'ARIS Campus',
the world's first BPM Research & Education Community for colleges and
students, which offers a central communications platform for over 200
colleges.
Business performance by segments (regions)
The four segments (regions) are reported before segment consolidation. In
the first quarter of 2009, the DACH segment reported sales of EUR 55.0
million, on par with the previous year's level (EUR 55.1 million). This
segment generated EBITA of EUR 8.4 million, a year-on-year surge of 46%.
The EMEA segment posted sales of EUR 25.4 million after EUR 30.8 million in
the same quarter of the previous year. The decline amounted to 17% or 11%
after adjustment for currency translation effects. In spite of the
reduction in sales, earnings improved to EUR 0.2 million (previous year:
EUR 0.0 million). The Americas segment recorded sales of EUR 11.6 million
after EUR 12.8 million in the previous year. This means a slide of 10%,
with the change amounting to 15% after currency adjustments. Earnings
improved on the previous year with EBITA of
EUR -0.2 million (previous year: EUR -1.1 million). Sales in the
Asia-Pacific segment amounted to EUR 4.8 million after EUR 5.1 million in
the previous year. This corresponds to a reduction of 6% and a change of
20% after currency adjustments. EBITA rose from EUR -0.7 million in the
previous year to EUR 0.1 million in the first quarter of 2009. The targeted
decline in sales and the improvements in earnings were the result of the
implemented reorientation of the IDS Scheer Group and the transformation to
the BPM business area.
Business performance by area
Previously, operations at the IDS Scheer group were divided into the two
business areas of products and consulting. The reporting structure changed
from 2009 as part of the reorganization of the company that was implemented
in 2008. The aim of the reorganization is to strengthen high-margin ARIS
products business by merging and bundling sales and consulting units from
both of the former areas. The two business areas will no longer be reported
on separately. In future, the structure of types of sales will be broken
down according to the different earnings contributions from business
activities: ARIS licenses and ARIS maintenance with high earnings
contributions for the entire organization, third-party licenses and
maintenance with medium gross margins and project and consulting business
with comfortable gross margins. This new reporting structure will show
volume and earnings effects more clearly and thereby increase transparency.
ARIS licenses generated sales of EUR 10.3 million (previous year: EUR 11.6
million) in the first quarter of 2009. Sales with ARIS maintenance
increased by 16% to EUR 7.0 million. Products business, consisting of ARIS
licenses and maintenance, posted a gross margin of 96%. Third-party
licenses and maintenance sales were EUR 5.7 million after EUR 6.4 million
in the same quarter of the previous year. This area reported a gross margin
of 25%. The consulting business volume declined to EUR 67.2 million
(previous year: EUR 70.2 million). The contribution margin amounted to 20%
in the first quarter. The order backlog in consulting grew by 14% to EUR
122.4 million (previous year: EUR 107.0 million). Measured against
consulting sales for the last three months, this corresponds to a
visibility of 5.5 months (previous year: 4.6 months).
'The strong start into the new year shows that our early measures to
reorganize the company are already having an effect. With our streamlined
structures, bundled sales forces and special innovative strength, IDS
Scheer is excellently positioned as the market leader - even in the face of
the difficult economic environment. It is precisely in these uncertain
times that every company must seek to know its processes, control them and
improve them continuously. Thanks to the launch of new and innovative
products in the coming months, we will accurately address the demand for
process optimization solutions and establish ARIS as the de facto standard
for business process management,' explained Peter Gérard, CEO of IDS Scheer
AG. 'We can see a great deal of market potential, particularly in the
international regions of America and Asia, where we are further pushing
ahead our global expansion. In addition, the first quarter has already
shown significant earnings improvements for our organization abroad. Thanks
to this solid basis, we are confident for the full year and are reiterating
our forecast for 2009.'
When it published its forecast for the year in February 2009, IDS Scheer
announced that it would generate sales in the current fiscal year of
between EUR 370 and EUR 390 million (primarily organically and on a
constant currency basis) and an EBITA margin within a range of 7% to 8%.
Further key financial data
The cash inflow amounted to EUR 7.0 million as against EUR -1.8 million in
the first quarter of the previous year. As a result, cash and cash
equivalents at IDS Scheer AG rose from EUR 113 million to EUR 120 million
as of March 31, 2009.
Thanks to the internal restructuring and strict cost management, structures
were designed more efficiently and cost synergies were leveraged. For
example, sales and marketing costs were reduced by 15% to EUR 14.9 million,
now accounting for a 16.5% share of sales (previous year: 18.6%). General
and administrative costs declined from EUR 6.0 million to EUR 5.0 million,
which means a reduced share of sales of 5.5% (previous year: 6.3%). In
contrast, IDS Scheer increased its research and development (R&D) expenses
by 10% to EUR 4.1 million, corresponding to a share of sales of 4.5%
(3.9%). IDS Scheer is investing more heavily in the targeted further
development and expansion of the ARIS product family and will launch a
number of new solutions on the market in 2009 as part of its innovation
campaign. The goal is to make ARIS a day-to-day instrument for company
management, thereby further strengthening the products area and
consolidating the leading global position of ARIS.
The Supervisory Board approved the proposal of the Executive Board to
maintain the policy of dividend distributions and continuity. The company
will propose to the Annual General Meeting of IDS Scheer AG on May 19, 2009
to pay a dividend in the same amount as that of the previous year of EUR
0.22 per share for fiscal 2008. Measured against the year-end stock price
on Xetra of EUR 6.00, this corresponds to a dividend yield of 3.7%. At the
start of December 2008, IDS Scheer began a share buyback program on the
basis of a resolution by the Annual General Meeting. By the end of March,
472,460 treasury shares (1.5% of shares outstanding) with a value of EUR
2.6 million were bought back on the stock exchange. The acquired shares can
be used for all the strategic purposes provided for in the authorization
resolution of the Annual General Meeting.
Note: Key figures and detailed figures on the segments can be found at:
http://www.ids-scheer.com/en/About_us/Investor_Relations/hidden_ir/149802.
html
The full interim report on the first quarter of 2009 is scheduled for
publication on May 8, 2009.
Note and invitation for editors/analysts:
The following conference calls will be held on April 28, 2009 with the CEO
Peter Gérard and the CFO Jörg Vandreier:
10:00 am - Press conference call (German);
11:00 am - Analyst conference call (English);
The access numbers for the conference calls are available on +49 (0)
681-210-1050 or -3201.
_________
If you have any questions please do not hesitate to contact:
Susanne Paul / Ingrid Britz-Averkamp
Investor Relations, Financial Press
Tel.: + 49 (0) 681 / 210 3201
Fax: + 49 (0) 681 / 210 1231
Email: susanne.paul@ids-scheer.com
_________
Disclaimer
Certain of the statements contained herein may be statements of future
expectations and other forward looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties which could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. The statements are not intended as a recommendation for any
kind of financial investment or de-investment in the company. IDS Scheer
can not guarantee the completeness or accuracy of the information. In
addition to statements which are forward-looking by reason of context, the
words 'may, will, should, expects, plans, intends, anticipates, believes,
estimates, predicts, potential, or continue' and similar expressions
identify forward- looking statements. Actual results, performance or events
may differ, materially from those in such statements.
DGAP 28.04.2009
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Language: English
Issuer: IDS Scheer AG
Altenkesseler Straße 17
66115 Saarbrücken
Deutschland
Phone: +49 (0)681 210-1050
Fax: +49 (0)681 210-1231
E-mail: invest@ids-scheer.com
Internet: www.ids-scheer.com
ISIN: DE0006257009
WKN: 625700
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: IDS Scheer AG: IDS Scheer doubles EBITA to EUR 8.2 million and earnings margin to 9.1%
| Source: EQS Group AG