Gauss Interprise AG
Gauss Interprise AG english
Gauss Interprise AG publishes figures for Q1 2003
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
——————————————————————————–
Gauss Interprise AG publishes figures for Q1 2003
Hamburg, May 28, 2003. Gauss Interprise AG (Prime Standard: GSO, ISIN DE
0005074603) closes the first quarter of 2003 as follows: Gauss Interprise AG,
which reports according to US GAAP, generated revenues of EUR 5.3 million
(prev.year EUR 7.6 million). After the positive development in 2002 and the
operating EBITDA profitability achieved for the first time in the 3. quarter of
2002, revenues in the quarter under review declined by 30% against the previous
year. The main reasons were the continuing negative worldwide investment climate
and the devaluation of the USD. Losses from foreign currency translation
amounted to EUR -0.675 million (prev.year EUR -0.082 million). The US accounted
for 57% of revenues (prev.year 70%), 26% were generated in Germany (prev.year
21%) and 17% in the rest of Europe (prev. year 9%). The gross profit/loss after
directly attributable manufacturing costs amounted to EUR 3.5 million (prev.
year EUR 5.2 million), which resulted in a gross profit margin of 66% (prev.
year 70 %). The EBITDA loss that amounted to EUR -1.1 million remained at the
same level of the Q1 2002 and increased by about 38 % against the Q4 2002.
The continuation of the strict cost management again resulted in a significant
reduction of all costs and thus offset the decline in revenues at least partly.
The US-American subsidiary was profitable for 6 quarters in succession, whereas
Gauss Interprise AG still generates deficits in the EMEA sales region. The
Group’s net loss was EUR -1.9 million (prev. year EUR -1.78 million). The loss
per share amounted to EUR -0.05 (prev. year EUR -0.06). With liquid funds and
short-term financial assets of EUR 3.4 million at the end of the Q1 of 2003, the
financial reserves of Gauss Interprise AG declined by 32% against the same
quarter of the previous year (EUR 5.0 million). This development is due to the
operating loss. However, the negative cashflow from operating activities dropped
to EUR -0.6 million in Q1 of 2003 (prev. year EUR -2.2 million).
At the end of the first quarter, Gauss had 195 employees (prev. year 244).
For the 2. quarter, Gauss Interprise AG expects a revenues and EBITDA at the
level of the first quarter of 2003.
end of ad-hoc-announcement (c)DGAP 28.05.2003
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
Revenues development
Despite the extremely difficult market situation, companies from certain sectors
and fields invest in making their IT systems more efficient in order to achieve
competitive advantage through a better service. These sectors include, for
example, the insurance sector, the public sector and public authorities as well
as the supply and transportation industry. The Gauss customer structure shows
that the company has many customers in these areas. In the software product
business, which is required to report on, the company’s revenues developed as
follows: license revenues amounted to EUR 1.7 million (previous year EUR 2.3
million) and accounted for 33% (previous year 30%) of total revenues. The
company acquired seven new license customers in Europe and nine in the US.
Companies such as Alfa Laval, HSBC Trinkaus Equipment Finance, United States
Pharmaceutical Group, or Unipharm are among the new customers in the first
quarter of 2003. Revenues generated by the Professional Services Group (PSG) –
the product-focused services for new installations or migrations – amounted to
EUR 3.4 million, which corresponds to a 26% decline in revenues against the same
quarter of the previous year (EUR 4.6 million).
Operating result
The total operating expenses of EUR -5.8 million (previous year EUR -7.6
million) led to an operating loss of EUR -2.3 million (previous year EUR -2.3
million) for the Gauss Group. In the first quarter of 2003, the operating costs
of the Gauss Group amounted to EUR
-7.6 million (EUR -9.4 million).
Financial security
At the end of the first quarter, the Gauss Group’s shareholders’ equity amounted
to EUR 7.5 million (previous year EUR 9.5 million) or 34,4% of the balance
sheet total. In an extraordinary shareholder meeting held on February 4, 2003,
the proposals of the executive and supervisory boards for a simplified reduction
of share capital through a reverse split at a ratio of 5 to 1 were approved
with a great majority. This resolution and the reduction of the negative
cashflow from operating activities improve the long-term financial stability of
the Gauss Group. The capital increase scheduled for the year 2003 from the
currently issued bond of EUR 4 million will increase the stockholders’ equity
ratio to approximately 54%.
Strategy and outlook
Overall, the result generated by the Gauss Group in the first quarter was
disappointing. The Group was able to maintain operating profitability in the
TAMS region, gain significant customers such as American Events and UniPharm,
and strengthen existing customer relations. However, given the figures of the
first quarter and the expected revenues for the coming quarters, the Group no
longer holds on to the guidance for 2003 (revenues of EUR 30 million, EBITDA
break-even). On the basis of the figures realized so far and the recessive
economic situation, the Gauss Group expects total annual revenues of only EUR 23
to 26 million. Against this background, the company anticipates an operating
EBITDA loss of EUR 3 to 3.5 million for the entire year.
Due to the difficult economic situation, the Gauss Group decided to restructure
its marketing strategy to make it more cost-efficient. The American subsidiary
also expects positive response to the Gauss User Conference, which takes place
in early June. Additionally, the strict cost management will be continued in the
entire Group. In Germany, temporary short-time work will be introduced in the
internal divisions.
——————————————————————————–
WKN: 507460; ISIN: DE0005074603; Index:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hannover und Stuttgart
280830 Mai 03
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found