IXOS Software AG
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IXOS to step up growth rate
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IXOS to step up growth rate
Fiscal year 2003/2004: revenues forecast to rise by 10%, higher earnings growth
– strong demand for new products – successful expansion of partner marketing
Grasbrunn near Munich, September 23, 2003 – IXOS SOFTWARE AG (NASDAQ: “XOSY”,
TecDAX: “XOS”) wants to substantially step up its growth rate in the current
fiscal year 2003/2004. Consolidated revenues are expected to rise by 10%, and
EBIT by substantially more than this. IXOS sees the high demand for its new
products and the expansion of its partner marketing network as the main growth
drivers. This was announced by IXOS’ Executive Board at today’s annual
financials press conference in Frankfurt/Main.
“Fiscal year 2002/2003 was a year of investments in the future for IXOS. This
year, we will be reaping the benefits,” announced CEO Robert Hoog. “We expect to
see above-average growth in our result of operations in fiscal year 2003/2004.
Our strong margins will be maintained, and operating business will not be
impacted by one-time costs as in the previous year,” added CFO Peter Rau.
Depending on developments on the currency markets, and assuming neutral exchange
rate effects, IXOS is aiming for a substantially improved EBIT margin in the
current fiscal year.
In fiscal year 2003/2004, the focus will be on improving organic growth and
exploiting synergies from the acquisitions already made. IXOS has successfully
expanded its core business of archiving to become a full-service provider of
enterprise content management (ECM) solutions. The company is now the European
market leader in this fast-growing market. The systematic expansion of its
inhouse software solutions and two acquisitions have added a range of products
to the company’s product offering, which generate strong demand. IXOS acquired
Obtree Technologies Inc. – a leading provider of content management products –
and PowerWork AG – a leader in process management and workflow technologies – in
January 2003. “Our expanded solutions offering is already starting to bear
fruit,” said Hoog. “In Q4 of last fiscal year, 36% of IXOS’ new license business
was attributable to new product initiatives.”
The Executive Board of IXOS reiterated its growth forecast for the current
fiscal year:
o IXOS aims to enhance its global position on the ECM market. To achieve this,
the company is investing in the further integration and systematic expansion of
its ECM product and solutions offering for SAP, Siebel and Microsoft customers,
as well as in the marketing of preconfigured business solutions.
o IXOS intends to use global marketing campaigns to boost growth in the current
fiscal year. For example, its acquisitions Obtree and PowerWork previously only
marketed their products at a limited regional level. As part of the IXOS
solution suite , the products can be marketed via the Company’s global marketing
network. In addition, sales of acquired products will be consolidated for a
full twelve months for the first time.
o At the beginning of the fiscal year, IXOS transferred responsibility for
corporate marketing to the US. Global marketing campaigns will be managed from
the company’s headquarters in Philadelphia. IXOS believes that its extended ECM
solutions offering has particularly good sales prospects in Europe and the US.
o Business is also being boosted by the international expansion of IXOS’ partner
sales and marketing activities, which have already led to major customer
contracts in recent months. Around one sixth of IXOS’ sales team focuses on
partners. Last year, IXOS successfully established a global network of 150
partners including leading hardware and software manufacturers, the IT sector’s
largest system integrators, system and software companies, and providers of
complementary technologies.
“IXOS was able to partner with EMC2 and Hewlett Packard, the leading
manufacturers of storage media, to market joint storage and archiving
solutions,” commented the Chief Sales and Marketing Officer Richard Gailer on
the success of the partner strategy. The Group feels that it is extremely well
positioned to generate a significant proportion of its revenues via partners in
the current fiscal year.
“Although the operating expenses required to successfully market the products
will impact our Q1 results, IXOS expects to generate substantially higher income
from operations in fiscal year 2003/2004 than in the previous year”, said Hoog,
explaining the company’s growth targets.
Fiscal year 2002/2003
According to the now audited and certified figures, the IXOS Group’s revenues
increased by 4.2% to EUR 127.1 million (previous year: EUR 122.0 million). This
allowed the Group to achieve its growth targets despite a difficult market
environment. Had exchange rates remained constant, consolidated revenues would
have risen by as much as 11%. Extraordinary costs of EUR 4.8 million relating to
the purchase and integration of Obtree and PowerWork, as well as negative
currency effects of EUR 2.9 million, impacted IXOS’ operating result.
Nevertheless, the IXOS Group generated income from operations (EBIT) of EUR 0.1
million (previous year: EUR 7.7 million). Without special effects, IXOS would
have generated EBIT of EUR 7.8 million. EBT amounted to EUR -3.6 million
(previous year: EUR 7.1 million), while the consolidated net loss totaled EUR
4.0 million (previous year: consolidated net income of EUR 6.8 million). The net
loss per share amounted to EUR 0.19 (previous year: net income per share of EUR
0.35).
2002/2003 Annual Report
IXOS’ 2002/2003 Annual Report is also available as an interactive online
version. The use of innovative Obtree C4 technology gives our online users the
opportunity to create, view online, download, or print out a custom version of
key parts of the Annual Report.
For further information, please contact:
IXOS SOFTWARE AG
Gala Conrad, Director Investor Relations
Tel: +49-89-46 29 2400, Fax: +49 89 46 29 1598
email: ir@ixos.de
end of message, (c)DGAP 23.09.2003
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WKN: 506150; ISIN: DE0005061501; Index: TecDAX, NEMAX 50
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart
230730 Sep 03
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