Brainpower N.V.
Brainpower N.V. english
Brainpower N.V. 2nd Quarter Financial Results for the period ended June 30, 2002
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Brainpower N.V.
2nd Quarter Financial Results for the period ended June 30, 2002
Improving Performance Despite Market Conditions
– Revenues of EUR 1.9 million represent a 6% increase over 2nd Quarter 2001
– EBITDA losses before restructuring costs decline for 5th consecutive quarter
– Cost reduction plan will contribute EUR 2.5 million in annual savings
– Total contract revenue backlog remains stable at EUR 9.3 million
– Revolutionary new products launched
– Reuters signs global agreement with Brainpower
Brainpower (Neuer Markt: BPW), provider of investment analysis and decision-
support software tools for the investment community, today announces financial
results for the quarter ended June 30, 2002.
Rocco Pellegrinelli, Chairman and Chief Executive Officer of Brainpower,
commented: “Market conditions were challenging in the second quarter and have
remained so into the third quarter. Revenues for the quarter equaled EUR 1.9
million, up slightly from revenues of EUR 1.8 million for the corresponding
period last year. As a result of successfully implementing our recently
announced cost cutting programs we were able to bring operating costs below
estimates to EUR 3.26 million, excluding restructuring costs of EUR 0.5
million. This compares favorably with operating costs of EUR 3.37, excluding
restructuring costs of EUR 0.1 million, in the first quarter of this year and
EUR 4 million in the corresponding period of 2001.
While our customers, primarily large financial services companies, will likely
remain guarded with their IT spending over the remainder of the year, we are
seeing increased interest in our products. Each new business pipeline in our
five key target markets is robust with interest coming from hedge fund managers,
fund of fund managers, private banks, and global investment banks. As a result,
we are confident of meeting our target of EBITDA breakeven by the end of this
year, but on lower expected revenue of approximately EUR 6 million for second
half of the year.
I am particularly proud of several achievements reached during this quarter. We
launched our exciting browser-based products, StockXceed and FundXceed. These
products place sophisticated investment analytics, including portfolio
optimization, decomposition, and attribution in the hands of users throughout
entire organizations. Initial response from potential customers has been very
positive.
Our agreement announced at the beginning of July with Reuters is particularly
exciting. Integration of Brainpower technology with the Reuters Investor and
Reuters Market Monitor products is currently underway and should be completed
by the end of the third quarter. We expect to see significant revenue impact in
2003 from this deal.
Third party agreements such as these are an integral part of our strategy and
I’m happy to say that we are currently in discussions with several more world-
class organizations, which will likely bear fruit in the near future.
New customers gained during the period included, among others, a private bank
in Germany and our first clients in both Luxembourg and Canada.”
end of ad-hoc-announcement (c)DGAP 01.08.2002
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Bill Holwell, Chief Financial Officer, commented; “EBITDA losses (earnings
before interest, taxes, depreciation and amortization) before restructuring
costs reduced for the fifth consecutive quarter to EUR 1.7 million, reflecting
initial benefits from the cost reduction program launched during the period.
Brainpower ended the quarter with cash and cash equivalents of EUR 8 million,
which is sufficient to fund operations until the Company reaches EBITDA
breakeven and beyond. Shareholders equity as of June 30, 2002 was EUR 10.6
million. Our net loss was EUR 2.6 million for the quarter, which includes EUR
0.5 million of restructuring costs.
Looking forward we expect, as a result of these initiatives and others in
progress, to generate revenues of approximately EUR 20 million and earnings
before interest and taxes of approximately EUR 3 million for the full year
2003.”
“This press release contains forward looking statements which involve risks and
uncertainties. The actual performance, results and timing of the business of
Brainpower N.V. could differ materially from the performance, results and timing
discussed in this press release. This press release is not distributed in or
into the United States of America.”
ABOUT BRAINPOWER
Brainpower is a developer and supplier of investment analysis and decision
support tools for investment professionals and online financial service
providers. Brainpower’s solutions are differentiated by their advanced
capabilities to support enhanced decision-making for investment professionals
and their clients, including retail investors. Customers include leading players
in the fields of asset management, private banking and online financial
services.
Brainpower is represented in major financial centers including: Amsterdam,
Frankfurt, Hong Kong, London, Lugano, Milan, Madrid, New York and Zurich.
For further information see: http://www.brainpowerweb.com (English) or
http://www.brainpower.de (German)
Or contact:
Curtis E. Fox
Director, Communications & Investor Relations
Brainpower N.V.
Tel: +44 (0) 20 7392 7100
Email: cfox@brainpowerweb.com
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WKN: 553169; ISIN: NL0000238228; Index:
Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Hamburg,
Hannover, Düsseldorf, Stuttgart und München
010830 Aug 02
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