OpenLimit Holding AG / Release of an announcement according to Article 37x of
the WpHG [the German Securities Trading Act]
18.11.2011 07:35
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 2nd half-year 2011
according to article 37x WpHG
Revenue from sales activities in the first nine months 2011 increased by 6%
to EUR 2.51 million in comparison to the same period in the previous year,
total income decreased slightly by 3% to EUR 4.11 million
Net loss in the first nine months 2011 reduced by 2% in comparison to the
same period in the previous year
Fujitsu and OpenLimit sign OEM contract for unique, long-term archiving
solution
OpenLimit presents QryptoMobile
OpenLimit delivers Linux version of the AusweisApp
OpenLimit and partner msg systems present GovPad at the trade fair and
congress 'Moderner Staat'
Univ. Prof. DDr. Radu Popescu-Zeletin, head of the renowned Fraunhofer
FOKUS Institute, joins Board of Directors of OpenLimit Holding AG
General Development
(Baar, Switzerland, November 18, 2011) The main focus in the second half of
the current business year was on the product launch of QryptoMobile, the
positioning of GovPad and the signing of the OEM contract with Fujitsu for
the new product 'Fujitsu SecDocs powered by OpenLimit'.
QryptoMobile has been developed to meet the specific customer demands to
combine the OpenLimit security technologies with a mobile data medium.
QryptoMobile offers the possibility of storing personal data password
encrypted on a USB stick and of signing emails via integrated soft
certificate. In addition, QryptoMobile features an Internet browser which
guarantees that no traces, such as browser histories or passwords, are left
on public computers. In August of this year, on the occasion of the 60th
anniversary of the International Judo Federation (IJF), QryptoMobile was
presented to a wider public in the shape of an 'IJF Special Edition' for
judokas, coaches and officials. Special attention was given to the fact
that, with the help of QryptoMobile, the International Judo Federation is
able to transfer up-to-date information, such as results or ranking lists,
via an information window directly to the user. In the fourth quarter, the
International Judo Federation is planning to start selling QryptoMobile via
its own web shop. Thus, OpenLimit has gained one of the world's largest
sports federations as partner. Further partnerships with other sports
federations are under discussion.
The tablet solution 'GovPad' that has been developed in close cooperation
with our partner msg systems and the company Medienkonzepte enables
decision-makers in politics and administration to securely access and work
on information and documents at any time even while being on the move - and
will even include electronic signature and revision-safe archiving
technologies. In November 2011, msg and OpenLimit presented the GovPad
concept at the trade fair and congress 'Moderner Staat'. Mobile
applications open up new forms of cooperation, networking and participation
and help to save time and money. The first target groups are the members of
the Federal and State Parliaments in Germany followed by the members of
other parliaments and decision-makers in the economy as well. It is planned
to combine this solution, where secure authentication via Tablet PCs plays
an important role, with the SecDocs solution in the future.
The signing of the OEM contract with the company Fujitsu for the new
product 'Fujitsu SecDocs powered by OpenLimit' is equally outstanding.
Fujitsu SecDocs allows long-term archiving of documents with preserved
evidential value. With this innovative technology that first has been
developed in compliance with the ArchiSafe standard and is currently being
certified according to the directive TR-ESOR of the Federal Office for
Information Security (BSI), the user can save time and money due to high
availability, ease of use and the possibility of migrating large data
volumes. The new product Fujitsu-SecDocs is now available for worldwide
distribution and is already being applied in several pilot projects. This
opens up a whole new market potential for OpenLimit. Fujitsu and OpenLimit
as well as further distribution partners will exploit this promising market
potential. The signing of the contract is of great importance as with this
close cooperation; OpenLimit has succeeded for the first time in gaining a
globally operating IT-company as an OEM partner. OpenLimit's contribution
consists of its base technologies and its competence in value-preserving
long-term archiving. The OEM contract regulates the allocation of license
revenues and with it laid the foundation for incentive schemes in the sales
environment. The partners FTS and OpenLimit already worked with pilot
customers, and a substantial number of opportunities have been identified
and priorities have been added. A significant sales contribution is
expected for the second quarter of 2012 for the first time.
In this quarter again, OpenLimit presented itself at several internal and
external events. In addition to presentations within the framework of our
memberships, as for example the German association 'Sichere Identität
Berlin-Brandenburg' or BITKOM (Federal Association for Information
Technology, Telecommunications and New Media), this year's CIT customer day
on September 20th is here of particular interest. It takes place on a
regular basis and enjoys great popularity. At this event, OpenLimit not
only presented the products 'QryptoMobile' and 'Fujitsu SecDocs powered by
OpenLimit', but for the first time demonstrated the long-term archiving
solution together with the new identity card and the administrative
procedures for the application, administration and storage of BAföG
(abbreviation for the Federal student grants program in Germany) documents.
This procedure can serve as model for many further specialized procedures
in the Federal Government, the Federal States and the Municipalities.
Moreover, 'Fujitsu SecDocs powered by OpenLimit' was presented at the
Fujitsu Forum 2011 in Munich where it was prominently positioned at several
exhibits, namely Software-as-a-Service (SaaS), high volume scanners and
software licenses vertical market. The Fujitsu Forum is one of the most
important international IT-management events attended by more than 8'000
Fujitsu customers and partners from all over the world and therefore an
important multiplier for Fujitsu products and solutions.
Changes in the organizational structure
On October 5th, 2011, Mr. Urs Winzenried informed the Board of Directors
and the management of OpenLimit, that he can no longer fulfil his
obligations as member of the Board of Directors due to personal reasons and
resigned from the Board of Directors of the OpenLimit Holding AG with
immediate effect. Mr. Winzenried had been a member of the Board of
Directors of the OpenLimit Holding AG since September 2003.
OpenLimit is delighted to announce that Professor Radu Popescu-Zeletin,
Head of the renowned Fraunhofer FOKUS Institute in Berlin, joins the Board
of Director of OpenLimit Holding AG today. His election by the Board of
Directors is subject to approval at the next General Assembly of the
Company. Professor Popescu-Zeletin is a renowned expert in information and
communication technologies and can draw on a vast network of contacts to
companies and institutions all over the world. More details on our new
Board member can be found on the homepage of the Fraunhofer FOKUS
Institute. [Link to CV in German]
Furthermore, Mr Reinhard Stüber, SVP, has assumed management
responsibilities for the Sales team of OpenLimit on an interim's basis,
while former CSO Peer Dietrich focuses on our key account business.
There were no other changes in the corporate structure to report.
Financial Development of the OpenLimit Group
On 01.01.2011 the functional currency of the OpenLimit group was changed
from Swiss Francs (CHF) to Euro (EUR). Comparative results for the
nine-month period of the previous year were converted at an average
exchange rate of 1.3702 CHF / EUR and the balance sheet based on a closing
rate of 1.3431 CHF / EUR.
In the first nine months of 2011, OpenLimit achieved revenue growth from
sales activities of 6% to EUR 2.51 million (9-months 2011: EUR 2.38
million). Taking into account provisions for possible write-downs, headline
sales amounted to EUR 2.39 million (+1% relative to results for the
nine-month period of the previous year). Due to lower additions to company
produced software assets (EUR 1.71 Mio in 2011 vs. EUR 1.83 in 2010) total
income decreased by 3% to EUR 4.11 million (2010: EUR 4.21 million).
As a result of recently developed technologies such as QryptoMobile, which
also include third party components, cost of goods sold increased from EUR
0.04 million to EUR 0.17 million. Personnel expenses including third-party
services and option expenses were reduced by 6% to EUR 3.60 million (Q3
2011: EUR 3.83 Million) in spite of high costs for software certification
processes. As of September 30th, 2011, OpenLimit Group had 64 employees
(incl. management) (compared to 30.9.2010: 58).
Despite increased activities across all areas, the launch of new products,
various patent and trademark applications, the continued strength of the
Swiss Franc and with more personnel, operational expenses could be kept at
EUR 1.23 million, almost the same level as in the previous year (EUR 1.21
million). Indeed, operational expenses in the third quarter of 2011
decreased by 13% in comparison to the average of the first two quarters
this year. Cost saving measures and the trimming of the cost base in
Switzerland show their impact.
Depreciation and amortization expenses increased by 20% to EUR 1.63 million
compared to the period in the previous year. This increase can be
attributed to intangible assets and, in particular, to the strong growth in
software development over the past few years.
EBITDA (earnings before interest, taxes, depreciation and amortization)
decreased by 2% from EUR -0.87 million to EUR -0.89 million, while
operating income (EBIT) fell by 13% to EUR -2.52 million (9 months 2010:
-2.22 million)
The financial result turned out better. Financial expenses could be reduced
by 68% to EUR 0.15 million due to reduced FX losses (9 months 2010: EUR
0.48 million.)
Hence, OpenLimit recorded a slightly smaller net loss of EUR -2.67 (-2%)
million for the period from January 1st - September 30th, 2011 (9 months
2010: EUR -2.73 m).
Non-current assets increased by +16% from EUR 4.20 m to EUR 4.86m compared
to the same period in the previous year.
Current assets increased by +37% to EUR 4.96m, of which EUR 4.80m were
attributed to trade- and other receivables (30.9.2010: EUR 2.58m) and the
remainder of EUR 0.16m to liquid assets. While the absolute level of
account receivables was reduced by EUR 0.40 million during the third
quarter, working capital development is unsatisfactory and liquidity
remains an issue as payment delays continue. Payments for account
receivables amounting to EUR 1.65 million continue to be sluggish. Most of
the value still outstanding is owed by a new client, which however has had
a long-time business relationship with the Chairman of our Board of
Directors. The outstanding amount of the receivable is undisputed and has
been confirmed by the client in writing on several occasions, including to
our auditors. Project delays on our client's side with third parties have
caused a payment lag. On the basis of regular conversations with the client
including earlier this week, the Board of Directors of OpenLimit is
absolutely convinced that the situation will be solved and payment will be
made before the end of the year. Provisions for account receivables were
increased to about EUR 120'000 as of September 30th, 2011.
On the other hand, since June 30th, 2011, trade account payables and other
liabilities could be reduced by 27% to EUR 0.85 million (30.9.2010: EUR
0.30 million).
In the beginning of September, OpenLimit executed a private placement of
1'046'666 shares. The company earned gross proceeds of EUR 628'000 from the
capital increase, which will be used to finance the planned growth of the
company. Hence, share capital including share premium was raised to EUR
14.49m.
However, per September 30th, 2011, the equity position of EUR 7.23m was
close to a year earlier (EUR 7.32m) due to the increase in accumulated
losses. Overall, the balance sheet total increased by 25% to EUR 7.83m to
EUR 9.82m within the first nine months of 2011 compared to the previous
year. Consequently the equity ratio decreased from 94% to 74% (as of
30.06.2011: 72%) when also taking into account convertible debt issued in
May of this year.
Technical Development
Throughout the third quarter of 2011, the development of the OpenLimit
product range has been expanded. The the main focus was on the developments
around OpenLimit Version 3, Fujitsu SecDocs, the eID-Server, QryptoMobile
and QryptoVesta. With QryptoMobile and QryptoVesta, OpenLimit now offers
technologies in the standard security segment, a segment that is
independent from the strict regulations of the high security segment.
Therefore, the OpenLimit technology portfolio now also includes products
for a broader public.
The OpenLimit Middleware Version 3 Server has been successfully optimized
performance-wise and introduced to various customers as component for the
high-performance verification of electronic signatures. That means, that on
the basis of this technology OpenLimit offers components that are suitable
for the verification of electronic documents with a daily quantity
structure in a seven-digit area.
The evaluation and confirmation process of the OpenLimit Version 3
Middleware is in the home-stretch. From OpenLimit's perspective, most of
the work for the evaluation of the software was completed by the end of the
third quarter. The SigG-confirmation is expected during the fourth quarter
of the current business year.
With respect to the development for Fujitsu SecDocs, new versions of the
server-sided OpenLimit Middleware and the components for SecDocs (MigSafe /
OverSign) were handed over to Fujitsu. This way, the QA measures for a
SecDocs follow-up version could be initiated. The evaluation of the SecDocs
components has been pushed forward as well, so that the safety-related
evaluation is expected to be finished in the fourth quarter.
The eID-Server version 2.5 was delivered to the customers. The current
release is characterized by a significantly increased performance
concerning the processing of authentication requests via the new identity
card, so that OpenLimit received a very positive feedback from its
customers. The upgraded version 2.5 has been implemented to the OpenLimit
eID-Server customers.
QryptoMobile is a new product that has been developed for secure
communication and transport of electronic data. In August, this product was
presented in Paris on the occasion of the Judo world championship. Customer
feedback concerning the software version was collected and integrated into
a software update that was released at the beginning of November.
Moreover, QryptoVesta, a new OpenLimit technology for comprehensive
application with soft certificates, was released as product in November.
The target groups of this technology are in particular companies and
authorities which apply signing, encryption and decryption processes within
a closed user group.
In addition to these activities, further versions - Windows versions as
well as Linux versions - of the AusweisApp have been released.
Outlook
During the first 9 months of 2011 several implementation processes both at
projects already signed as well as some that were expected to be acquired
have suffered delays. This applies to the product completion processes as
well. Changes to the legal environment for electronic invoicing and the
abolition of the government project ELENA have further influenced the
climate in the electronic signature market. This shows once again that the
projects and markets in which we already participate / are active in,
depend on several factors. These factors include timely decision-making by
the client, delays in the delivery of third-party components as part of an
overall system, passing of laws and regulations, speedy provision of
advisory services of consulting firms, the interaction / agreement between
various interest groups etc. OpenLimit has no or only limited influence on
these factors. Since the beginning of the year, some of these factors have
also created challenges in our cash management, because payments depend on
the completion of the system as a whole, not only on the contributions of
OpenLimit. This situation will change during the next months.
Projections for revenue development in the fourth quarter are subject to a
significant margin due to low visibility. This development is very much
dependent on the closing, or the awarding of contracts for several pending
project opportunities and request for proposals as well as the time
remaining to finalize certain projects. Accordingly, it is still not
possible to give an accurate forecast.
Due to the difficulty of predicting the immediate sales performance, the
Board of Directors cannot rule out further financing measures next year
from today's perspective.
However, the medium to long-term outlook remains positive. It is assumed
that sales for products developed in collaboration with partners, including
Fujitsu SecDocs powered by OpenLimit and the eID server with the
Bundesdruckerei, gain momentum in the coming year. The transaction-based
pricing models will also provide sustainable revenue growth. The new
products QryptoMobile and QryptoVesta - where a customer pipeline has only
been a few months in the making - also ensure sales growth given large
customers such as the International Judo Federation. It is also expected
that large projects which have already been acquired will start full
operation in 2012. These developments, together with the network and
contact potential of the new Board member Prof. Radu Popescu-Zeletin give
rise to a positive assessment of the future development of OpenLimit.
About OpenLimit
OpenLimit Holding AG is an internationally leading provider of certified
software solutions for electronic signatures and identities. Our software
components can easily be integrated into existing applications, enabling a
highly efficient management of electronic documents, media-consistent
workflows and process optimisation in all business sectors. OpenLimit holds
the very first certification recognising world-wide compliance with
international security standard, Common Criteria EAL 4+, guaranteeing the
highest degree of security and legal validity currently achievable.
Additional information is available under: http://www.openlimit.com/en
Your Investor Relations Contact
OpenLimit Holding AG
Christian Fuessinger
Tel: +41 41 560 1020
Fax: +41 41 560 1039
E-Mail: ir@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.
18.11.2011 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
Switzerland
Internet: www.openlimit.com
End of Announcement DGAP News-Service
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DGAP-IRE: OpenLimit Holding AG: Interim announcement within the 2nd half-year 2011
| Source: EQS Group AG