update software AG Posts Record Revenues and Doubles Operating Earnings in Q2/2007

  
    
  
  
    
      In the second quarter of fiscal 2007, update software AG (FWB:UP2) – 
      a leading European vendor of Customer Relationship Management (CRM) 
      solutions – has posted record revenues. For 
      the first time, update, headquartered in Vienna, Austria, and quoted on 
      the Frankfurt Stock Exchange, generated total sales in excess of €8 
      million, an increase of more than 43 percent compared to the previous 
      quarter. Moreover, the company doubled earnings before interest and 
      taxes (EBIT). Revenues for the second quarter of 2007 amounted to €8.123 
      million, up 43.3 percent over the same period of fiscal 2006 (€5.670 
      million). And, significantly for a software vendor, licensing sales rose 
      by 53.8 percent. EBIT climbed to €1.028 
      million, up 99.6 percent over the second quarter of 2006. Earnings 
      before tax (EBT) were €1.066 million, a 
      year-on-year jump of 90 percent (€0.561 
      million).
    
    
      On course for the €100 million mark
    
    
      update CEO, Thomas Deutschmann, is understandably upbeat: “The 
      figures speak for themselves. The recent acquisition of Orgaplan, the 
      German CRM specialist for banks, with a particular focus on the 
      publicly-owned Sparkassen, has already had an extremely positive 
      impact. Especially in financial services, update has experienced 
      above-average growth, and considerably increased market share, putting 
      us firmly on track to become the European leader. Our strategy of 
      targeting specific industries, and our commitment to 
      profitable growth, are proving highly successful. What’s 
      more, the development of company results underlines the realism of our €50 
      million revenue target for fiscal 2009 – to 
      which a further significant acquisition would also contribute. Against 
      this background of growth and profitability, I can easily imagine update 
      joining the ranks of companies that generate annual revenues of €100 
      million within the next decade.”
    
    
      A string of new customers
    
    
      update gained a number of new customers in the second quarter of fiscal 
      2007 – such as the K&H Bank Rt in Hungary, a 
      member of the Belgian KBC group, and two leading financial services 
      organisations in Switzerland. The vendor’s 
      clientele also includes Schunk GmbH & Co. KG, a German manufacturer of 
      automation components and tool-/work-holding solutions, and Doka 
      Schalungstechnik GmbH, an Austrian supplier of formwork and a member of 
      the Umdasch group. And the Centrum pro védská 
      studia (Centre for Vedic Studies) in the Czech Republic, and 
      Diagnosis4Health, a Dutch organisation, are further additions to update’s 
      customer base.
    
    
      Half-year sales 30.5 percent higher than for same period of 2006
    
    
      In terms of half-yearly figures, too, update has seen impressive 
      year-on-year improvement. Total sales rose from €10.831 
      million for the first six months of 2006 to €14.138 
      million for the same period in 2007 – a rise 
      of 30.5 percent. EBIT was €1.425 
      million for the first six months, up 76.8 percent over the first half 
      year of 2006 (€0.806 million). EBT was €1.571 
      million, 104.8 percent higher (€0.767 million 
      in the first half year of 2006). update’s 
      cash position climbed to €11.761 million – 
      30.6 percent higher than for the first six months of 2006 (€9.008 
      million). Shareholders’ equity for update 
      software AG totalled €21.942 million on 30 
      June 2007 – 66.3 percent higher than at 
      mid-year 2006 (€13.196 million). update 
      financed the purchase of Orgaplan Software GmbH via a share issue in 
      June 2007 – so the increase in the cash 
      position is explained by the positive development of business 
      operations. Orgaplan Software GmbH, acquired by update in April, was 
      fully consolidated in the second quarter of 2007.
    
    
      About update software
    
    
      update software AG (www.update.com) was founded in Vienna, Austria, in 
      1988. With more than 260 employees, and revenues of €23.4 
      million in 2006, it is Europe’s leading CRM 
      (customer relationship management) solution provider. It is quoted on 
      the Frankfurt Stock Exchange.
    
    
      update products are used by more than 150,000 employees at over 1,200 
      leading companies. References include 3M, American Express, BILD 
      newspaper publishing group’s advertising 
      department, AstraZeneca, BAWAG P.S.K., Canon, DuPont, ESTAG, the Hassia 
      Group, UnicreditBank Hungary, Landesbank Rheinland-Pfalz International 
      S.A., LBS Nord, MagnaSteyr, Pernod Ricard, ratiopharm, Sony Deutschland, 
      as well as Sparkasse Bremen, Sparkasse Hamburg, and 200 other German 
      Sparkassen. update cooperates with carefully selected systems 
      integration partners, such as Atos Origin, Hewlett Packard, Sensix, and 
      Steria Mummert Consulting.
    
    
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