OpenLimit Holding AG / Release of an announcement according to Article 37x of
the WpHG [the German Securities Trading Act]
19.05.2011 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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OpenLimit Holding AG: Interim announcement within the 1st half-year 2011
according to article 37x WpHG
- Sales revenue in the first three months 2011 increased by 4% to EUR
0.76 million in comparison to the same period in the previous year,
total income decreased slightly by 2% to EUR 1.29 million
- OpenLimit and KDRS / RZRS Baden-Württemberg combine their expertise and
provide unique technology solutions
- RA-MICRO fully integrates long-term storage solution 'SecDocs' provided
by Fujitsu and OpenLimit
- msg systems and OpenLimit cooperate on solutions for long-term storage
- At CeBIT 2011, OpenLimit together with partners in the project
'SkIDentity' received an award in the technology competition 'Secure
Cloud Computing for the 'Mittelstand' and the public sector - Trusted
Cloud' sponsored by the German Federal Ministry of Economic Affairs &
Technology (BMWi)
- Since January 1st, 2011, OpenLimit reports its financials in Euro
- René C. Jäggi assumes new role as delegate of the Board of Directors of
the Swiss-based OpenLimit companies to support the management team and
assumes operational responsibilities
General development
Baar, Switzerland, May 19th, 2011 - After a strong finish to the year 2010,
OpenLimit reports a positive start into the first quarter of 2011. Despite
some initial turbulences caused by a hacking attack on the new personal
identification card project in Germany right after the launch date, the
so-called 'AusweisApp', the application software for the new ID card, has
been available for download uninterruped since 03.01.2011. Furthermore, it
has since been upgraded with some additional features and now supports
other Internet browsers / operating systems. Furthermore, OpenLimit was
able to successfully acquire new customers in the first quarter of the
fiscal year 2011. In particular, the city of Munster, Baumarktforschung
GmbH, KDVZ, Bundesverwaltungsgericht, Gesellschaft für Gebäude-automation
and Computacenter should be mentioned. To enhance its positioning in the IT
security market OpenLimit has set up further promising partnerships so far
this year. OpenLimit's partner network has been enlarged with companies
including CORDYS, KDRS / RZRS and VPS ID systems and existing partnerships
with RA-MICRO and msg-systems have been strengthened.
Based on the cooperation agreement with KDRS / RZRS OpenLimit's signature
products, eID service and solutions for reliable long-term storage of
documents will be available as a unified solution directly from KDRS and
the data center. The group of companies Kommunale Datenverarbeitung (KDRS)
and Rechenzentrum Region Stuttgart GmbH (RZRS) is a modern IT service
provider focused on the public sector with a market share of nearly 100% in
Stuttgart. The data center serves municipalities in Baden-Württemberg with
a complete product portfolio of IT solutions for local government.
The cooperation agreement between RA-MICRO, Fujitsu and OpenLimit covers
the integration of Fujitsu SecDocs into the leading software application
for law firms and notaries in Germany similarly called 'RA-MICRO'. In the
very near future, this software integration will enable more than 16,000
law firms / notaries and 60,000 work stations to subscribe to a
tamper-proof long-term storage solution with secure backup for electronic
documents which thus maintain their evidentiary value.
The msg systems AG is well known for projects in the SAP environment as
well as in particular for electronic registries and mobile applications.
The goal of this cooperation agreement is the development and
commercialisation of sustainable registry systems for governments,
authorities or other public bodies.
VPS ID systems develops and markets electronic access systems which will be
enhanced with new the functionalities using OpenLimit components. Both
companies have agreed to share technical synergies and provide further
added value to their customers.
Like in previous years, OpenLimit will continue to be present at many
industry events and trade fairs this year. In the first quarter the CeBIT
2011 in Hannover with all its buzz was clearly at the forefront of the
exhibition and communications activities. The OpenLimit team was
represented at both the booth of our partner Siemens IT Solutions themd on
the topic of the 'new identity card' and the 'eID server' as well as the
booth of our partner Fujitsu where experts from both companies promoted our
jointly-developed solution for long-term storage. At the largest booth in
the hall 'Public' sector, which was the one hosted by the Federal
Commissioner for Information Technology, Secretary of State at BMI Ms.
Rogan-Grothe, a variety of applications in connection with the new eID card
across the fields of science, government and industry were shown, all
working with the AusweisApp provided by OpenLimit. Furthermore, OpenLimit
was invited to several speaches and podium discussions on this subject and
once more was able to position itself well in the Public Sector Parc.
Also on the occasion of Cebit 2011, OpenLimit as technological leader in
the eID area received an award from the Federal Ministry of Economics and
Technology (BMWi) for its entry in the technology competition 'Secure Cloud
Computing for the 'Mittelstand' and the public sector - Trusted Cloud'.
(link). The BMWi promotes the program 'trusted cloud' to develop and test
innovative, secure and legally compliant cloud solutions and sponsors the
program with about 50 million Euro over the next three years. A total of
116 project proposals were submitted as a result of the competition
announced in September 2010. With the help of an expert jury twelve
projects were selected for sponsing by the BMWi. The project 'SkIDentity'
(Coordinator: ecsec GmbH) which is supported by OpenLimit will create an
'identity broker' with the ability to connect cloud computing
infrastructures with the authentication function of the new ID card.
OpenLimit continued to present the topics of the new identity card and
long-term storage at numerous national conferences and congresses. e.g.
events focused on the safety of electronic communication in Potsdam with
the Federal Ministry of Economics, the event 'MEDIA meets IT, where new
approaches including the new ID card were developed as well as in the media
sector, but also events focused on IT security in Switzerland.
Finally, work in the context of the EU project STORK (link) was continued.
Goal of the STORK project is to build an Europe-wide, interoperable eID
platform that integrates all national eID projects. Already last year,
OpenLimit specified the platform and successfully developed the first
prototype for the eID programs in Germany, Austria and Estonia.
Changes in the organizational structure
On May 13th, 2011, the Board of Directors of OpenLimit Holding AG and its
wholly owned subsidiary OpenLimit SignCubes AG appointed Mr. René C. Jäggi
delegate ('Deligierter des Verwaltungsrats') of both companies. The
appointments become effective upon entry in the commercial register. Mr.
René C. Jäggi (for the Curriculum Vitae of Mr. Jäggi, we refer to the
Annual Report 2010) became Member of the Board of OpenLimit Holding AG on
July 18th, 2008 and Vice President of the Board on February 19th, 2009. By
appointing Mr. Jäggi, OpenLimit shows clear commitment to enhance the
national and international marketing efforts of the company's products. The
company founder, chairman and former delegate Heinrich Dattler remains
chairman of both companies. The company was able to negotiate a
cost-neutral solution, so that personnel expense will remain largely
unaffected.
In the 1st Quarter the area of business development was restructured and
combined with sales and marketing. Mr. Dirk Arendt, member of the Executive
Board, continues to serve as Head of Corporate Communications.
There were no other changes in the coporate structure.
Financial development of the OpenLimit Group
Since 01.01.2011 the functional currency of the OpenLimit group has been
changed from Swiss francs (CHF) to Euro (EUR), which will make OpenLimit
less affected by currency translations and will enable the company to
present a clearer picture of its financial performance. Underlying reasons
for this switch are as follows: Both sales and costs are mainly denominated
in Euro, the internal planning and controlling of the OpenLimit group takes
place in Euro and the share of OpenLimit Holding AG is quoted in Euro. In
accordance with IAS 21 the closing EUR / CHF exchange rate of EUR 1.2505 as
of 31.12.2010 was used for conversion of the opening balance sheet. For
year-on-year comparisons the exchange rate of EUR 1.4267 as of 31.03.2010
was used in this interim report of the 1st half of 2011.
In the first three months of 2011, OpenLimit achieved revenues from sales
activities of EUR 0.76 million, up 4% on the same period last year (Q1
2011: 0.73 million). Company produced additions to software development
increased by the same level from EUR 0.58 million to EUR 0.60, thus after
consideration of provisions for possible write-downs total income amounted
to EUR 1.29 million results, 2% below last year's figure (Q1 2010: EUR 1.31
million). At the end of the quarter OpenLimit Group had 63 employees, an
addition of 9 employees or 17% (Q1 2010: 54). In comparison, personnel
expenses increased by 15% to EUR 1.20 million year-on-year, while
operational expenses rose by 5% only to EUR 0.42 million (Q1 2010: EUR 0.40
million). After deducting depreciation and amortization of plant &
equipment and in particular of intangible assets of EUR 0.55 million (Q1
2010: EUR 0.44 million), OpenLimit recorded an operating loss of EUR -0.89
million compared to EUR -0.57 million over the same period of last year.
For the first time in more than a year, the financial result made a
positive contribution to net income at EUR 0.09 million (Q1 2010: EUR -0.1
million) and thanks to the switch to financial reporting in Euro gives a
clearer picture of the impact of currency fluctuations on the company. At
the bottom line, the quarterly net loss was extended by 16% from EUR 0.69
million to EUR 0.81 million year-on-year. After an almost traditionally
strong fourth quarter in 2010, the first quarter in 2011 in terms of
revenues was below expectations due to delays in major projects such as the
AusweisApp and the largest digitization project in Europe. However, this
was partly mitigated by a strong management focus on personal and operating
expenses, which will also have a positive effect on coming quarters as well
as margins for the full year.
As of 31.03.2011, the value of non-current assets amounted to EUR 4.81
million, an increase of 34% (Q1 2010: EUR 3.59 million) primarily due to
additions to capitalized software development. Current assets decreased by
10% to EUR 5.07 million. Because of accounts receivables remaining high
additional provisions for bad debts of EUR 0.085 were built as
precautionary measure. Compared to March 31st,2010, current liabilities of
EUR 0.28 million increased to EUR 1.34 million and long-term liabilities
rose from EUR 0.18 million to 0.24 million. Equity was reduced by 5% to EUR
8.31 million (Q1 2010: 8.78 million).
Technical Development
Throughout the first quarter of 2011, ââthe company made progress in
various technological focus areas.
As mentioned above, new versions of the AusweisApp were delivered to
Siemens on behalf of the end customer BMI. For example, the current version
of the AusweisApp for Windows has become 'barrier-free'. This means that
the software can be used in conjunction with a screen reader and also
allows the use of the so-called contrast mode, which enables visually
impaired people to use the software. The same barrier-free version for
Linux will be handed over to Siemens in the month of May. In addition to
these activities, the current version of the AusweisApp now also supports
the latest web browser versions Firefox 4 and Internet Explorer 9.
The OpenLimit Version 3 was further developed as client software and
delivered to customers. The main focus is on the electronic signature
functionality, which now supports all card readers and cards that are
compliant with the electronic signature Act (SigG) in Germany. The
certification process for this software version has already started and is
expected to be completed in the second half of the year.
In addition to the development and deployment of the client application of
OpenLimit software version 3 a server component for high-performance
signature solutions has been rolled out to partners. As a result of
optimizing the software, ââthe required time for signature verification was
reduced dramatically. Furthermore, the component V3 is now available for
massive parallel exposure in server processes.
In addition to these products, the Linux-enabled version of the eID server
has been completed and handed over to the first customers. With this
product version, OpenLimit clients can now operate the eID server with Suse
Linux Enterprise and RedHat.
OpenLimit has conducted a re-confirmation of the certified 2.5 technology
family by an accredited agency in connection with the healthcare terminals
of HyperCom. Thus, a software version which makes the creation of qualified
signatures in conjunction with the new healthcare terminals possible is now
available to customers in the medical field. As part of this implementation
other manufacturers of healthcare terminals now want to achieve a
re-confirmation of OpenLimit components in connection with their eHealth
readers.
Equally, the software S-TRUST Sign-it has undergone a re-confirmation
process, so that a current version of the OpenLimit technology in
conjunction with recently confirmed SECCOS chip cards is available to the
Deutscher Sparkassen Verlag (DSV).
In addition to activities in software development and maintenance,
OpenLimit has started to increase its efforts to design and implement new
products and solutions.
Outlook
Although we are not satisfied with the results of the first quarter the
outlook for the entire year still remains very positive. Similar to past
financial periods we again expect revenues to gain strong momentum in the
remaining 9 months of the year. Important milestones are the completion of
certification / re-confirmation processes for OpenLimit base components V3
as well as the product Fujitsu SecDocs which will open up new markets and
distribution channels for the company. Furthermore, we expect additional
revenues from eID projects and from new technologies in the pipeline to be
significant.
A considerable increase in 2011 revenues should be achievable; however,
since the beginning of the year several implementation processes both at
projects already signed as well as some that were expected to be acquired
have suffered delays. This shows once again that the projects in which we
already participate or that we feel well positioned to acquire are
dependent on several factors. These factors include e.g. timely
decision-making by the client, delays in the delivery of third-party
components as part of an overall system, passing of legal framework, speedy
provision of advisory services of consulting firms, the interaction /
agreement between various interest groups, etc. As a small company,
OpenLimit has no or only limited influence on these factors. Since the
beginning of the year some of these very factors have also created
challenges in our cash management. Because certain payments are dependent
on the client's acceptance of delivery which is only given once a project
milestone or system has been completed as a whole - even if OpenLimit's
contribution had been delivered months earlier - Openlimit will only get
paid once the overall system is working and has been paid. This situation
may change quickly; nevertheless, we are currently evaluating various
options to ensure that cash reserves remain in accordance with a
conservative cash management approach.
Based on a steadily growing sales pipeline, increasing average project
volumes and newly established pricing models, we are optimistic about
achieving our goals. Once some of the developments we expect have come
through, a more precise guidance for the growth percentage target should be
possible later in the year. The current challenges are primarily in the
estimation of the shape of the growth curve and the exact timing of when
certain network effects will occur.
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
Legal Disclaimer
This press release contains forward-looking statements. Forward-looking
statements are statements which do not describe actual facts from the past;
they also comprise statements about our assumptions and expectations. Every
statement in this press release which reflects our intentions, assumptions,
expectations or forecasts (together with the assumptions that give rise to
our views) constitutes a forward-looking statement. These statements refer
to plans, estimates and forecasts which are currently available to the
management of OpenLimit Holding AG. Thus forward-looking statements only
refer to the day on which they were made. We shall accept no obligation to
adjust and / or publicize such adjusted statements in the light of new
information or future results.
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: investor@openlimit.com
19.05.2011 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: Interim announcement within the 1st half-year 2011 according to article 37x WpHG
| Source: EQS Group AG