Half-YearlY report 2009 QuarterlY report Q2€¦ · QuarterlY report Q2.2009 ecoNomic BackGrouND...

Half-YearlY report 2009QuarterlY report Q2.2009

atoSS customer Benetton

«What companies are looking for today are ways and means of achieving further cost optimizations, while realizing rapid return on investment at the same time. As one of the workforce management pioneers, ATOSS is ideally positioned. In our projects we generate personnel cost savings in the dou-ble-digit range, without customers compromising on their desired service quality levels.»

H a l f - Y e a r l Y r e p o r t 2 0 0 92 3a t o S S

l e t t e r t o S H a r e H o l D e r S

Dear Shareholders,ladies and Gentlemen,

In the first half of 2009, ATOSS Software AG has continued the record performance seen in the past three years. Sales and results have once again been increased, and an even stronger order book allows us to predict the outcome of the current financial year with security.

In an economic environment overshadowed by a recession, we are delighted to be able to report sustained high interest in our solutions and services. ATOSS has acquired many at-tractive customers in the first half-year.

By successfully attracting new clients and winning further orders from existing customers we have continued to ex-pand our position in the SME sector and to add to our mar-ket share. The strategic competitive advantages to be gained from the deployment of workforce management so-lutions are not restricted to large, generally internationally oriented companies. Specifically small and medium enter-prises are able to substantially strengthen their position when competing with large groups and low wage countries. By introducing a demand-oriented scheduling system to make optimum use of their existing human resources, they can significantly reduce their labor costs. In times of widely fluctuating order levels and the ensuing variations in ca-pacity utilization, workforce management is a matter of special importance.

Strong development in software licenses and consultingIn the first half-year, ATOSS recorded overall sales reve-nues up 6 percent at EUR 14.2 million. Growth in software licenses and consulting was particularly strong, while the consistent positive development in software maintenance

was maintained. Once again our stable business model and our continuing high levels of investment in research and development (R&D) have proven to be both correct and suc-cessful. The R&D ratio remained unchanged at 19 percent of sales, representing an investment of EUR 2.7 million in the ongoing development of our products in the first half-year.

We have seen substantial growth in orders received and on hand. Due to the gratifyingly high level of demand, orders received for software licenses were 48 percent higher at EUR 4.2 million. Consequently as of June 30, orders on hand were up by 80 percent over the year before at EUR 3.6 million.

further increases in profits, cash flow and liquidityAs a result of the positive development in sales, all of our key figures were improved. Operating profits (EBIT) were up 7 percent over the year before at EUR 2.9 million, with a mar-gin on sales of 21 percent. There were even more substantial increases in pre-tax earnings (EBT) which were up 20 per-cent at EUR 3.1 million, and earnings per share which climbed 21 percent to EUR 0.52. Operating cash flow rose strongly to reach EUR 3.5 million, compared with EUR 0.5 million in the preceding year, and despite the dividend distribution, liqui-dity on June 30 stood at EUR 15.5 million.

With an equity ratio of 61 percent, ATOSS continues to meet all of the criteria which underpin maximum security for customers, employees and shareholders.

last year’s record figures should at a minimum be repeatedAfter a very strong first quarter, orders received in the sec-ond quarter represented an entirely normal average. In view of the general economic situation, we can be very satis-fied with this development. Fresh orders were placed both by existing customers and new clients in the airline, retail and telecommunications sectors. This marketing success contributed to a strong order book which allows us to plan ahead with security for the second half-year. However, since we, too must live in the real world, for as long as the econ-omy is hampered by extreme uncertainty, we shall remain cautious in our forecasts. For the current financial year 2009 as a whole, we therefore anticipate that last year‘s re-cord figures will at least be equaled.

Now is the time to distinguish ourselves!The economic success ATOSS has achieved is based upon the consistent implementation of our business strategy and derived in particular from our high level of investment in research and development. We therefore measure our-selves not merely by our record results, but more particu-larly by the continuous targeted expansion of our range of products and solutions. We are very proud since the change in technology in 2005 to have already placed the twelfth re-lease of the ATOSS Staff Efficiency Suite and ATOSS Start Up Edition at our customers‘ disposal – always at the agreed time and in every case with a substantial increase in the scale of performance. We continue to push ahead with this pace of development and in the second half of financial year 2009 as well as in future releases we shall launch some significant new functionalities on the market.

ATOSS consistently exploits the opportunities presented by the economic crisis. This is precisely the time to consoli-date our own technological position and thereby distinguish our products and services even more markedly than ever! The decisive factor is that ATOSS will emerge considerably stronger from the crisis, to the benefit of our customers, employees and shareholders.

Yours truly,

Andreas F.J. Obereder Christof Leiber(Chief Executive Officer) (Member of the Board of Management)

Christof LeiberAndreas F.J. Obereder

letter to SHareHolDerS

H a l f - Y e a r l Y r e p o r t 2 0 0 9

Q u a r t e r l Y r e p o r t Q 2 . 2 0 0 9

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S of t Wa re l iceNce S

7f a c t S o v e r v i e W6 H a l f - Y e a r l Y r e p o r t 2 0 0 9


ecoNomic BackGrouND Worldwide recession outlook for the itc sector less negative forecasts for the German software market: minus 2.2%

atoSS SoftWare aG against the trend, atoSS continues to grow New record sales and results Strong order book underpins forecast for 2009

factS overvieWcoNSoliDateD overvieW aS per ifrS: 6-moNtH compariSoN iN eur’000

01.01.2009 - 30.06.2009

Proportion of total revenues

01.01.2008 - 30.06.2008

Proportion of total revenues

change 2009 / 2008

Software 8,350 59% 7,713 58% 8%

Software licenses 3,126 22% 2,820 21% 11%

Software maintenance 5,224 37% 4,894 37% 7%

consulting 4,150 29% 3,664 28% 13%

Hardware 909 6% 1,540 12% -41%

other 749 5% 403 3% 86%

total sales revenues 14,157 100% 13,319 100% 6%

eBitDa 3,108 22% 2,916 22% 7%

eBit 2,926 21% 2,735 21% 7%

eBt 3,078 22% 2,555 19% 20%

Net income 2,075 15% 1,731 13% 20%

cash flow 3,530 25% 522 4% ›100%

liquidity1,2 15,549 12,472 25%

epS (EUR) 0.52 0.43 21%

employees3 224 207 8%

coNSoliDateD overvieW aS per ifrS: QuarterlY compariSoN iN eur’000

Q2/09 Q1/09 Q4/08 Q3/08 Q2/08

Software 4,162 4,188 4,178 4,126 3,996

Software licenses 1,551 1,575 1,642 1,603 1,513

Software maintenance 2,612 2,613 2,536 2,523 2,484

consulting 2,157 1,992 1,839 1,860 1,894

Hardware 345 564 689 540 814

other 361 388 170 222 216

total sales revenues 7,026 7,132 6,876 6,748 6,921

eBitDa 1,498 1,610 1,203 1,310 1,521

eBit 1,405 1,520 1,097 1,214 1,429

eBit margin 20% 21% 16% 18% 21%

eBt 1,472 1,607 1,166 1,394 1,549

Net income 995 1,080 831 948 1,046

cash flow 748 2,782 -1,055 3,034 -2,513

liquidity1,2 15,549 16,680 14,000 15,425 12,472

epS (EUR) 0.25 0.27 0.21 0.24 0.26

employees3 224 220 226 213 207

1 Cash and marketable securities; 2 Dividend of EUR 0.44 per share on May 4, 2009, equating to EUR 1,739,000 (previous year: EUR 0.31 on April 30, 2008); 3 At the end of the quarter

11,7 13,314,2

to ta l re v eNue

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3,0 3,74,2

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1,92,7

2,9

eBi t

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9i N v e S t o r r e l a t i o N S

8 H a l f - Y e a r l Y r e p o r t 2 0 0 9


iNveStor relatioNS

coNSoliDateD overvieW aS per ifrS: QuarterlY compariSoN iN eur

2009 2008

Q2 Q1 Q4 Q3 Q2

High 10.00 7.80 7.60 8.90 8.40

Low 7.42 6.80 5.20 7.10 7.61

Share price at end of quarter 9.20 7.52 7.23 7.10 7.95

Treasury stock 72,099 73,099 68,894 24,500 29,500

Dividend paid per share 0.44 0.00 0.00 0.00 0.31

Cash flow per share 0.19 0.70 -0.34 0.76 -0.63

Liquidity per share 3.93 4.22 3.48 3.86 3.12

EPS 0.25 0.27 0.21 0.24 0.26

EPS (diluted) 0.25 0.27 0.20 0.24 0.26

150%

120%

90%

60%

30%

ATOSS Prime IG Software performance

Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

Share price continues to perform wellHaving performed well for shareholders last year, the price of ATOSS stock continued to develop strongly in the first half of 2009. The stock rose by 27 percent, or 33 percent al-lowing for the dividend. ATOSS has substantially beaten comparative indicators such as the Prime IG Software In-dex which rose by 18 percent during the reporting period. Following the publication of provisional figures for the first half-year, on July 23 ATOSS shares reached a new multi-year high of EUR 11.75.

The individual key figures for cash flow, liquidity and earn-ings per share also remain unvaryingly positive. Analysts therefore ascribe a very attractive valuation to ATOSS stock.

analysts see further potential: “more successful than ever – despite the recession”SES Research GmbH, a Warburg Group company, has con-sistently observed, analyzed and valued the development in business at ATOSS in the first half-year. Most recently SES published a detailed study at the end of April, followed short-ly after by an update on ATOSS. The analysts continue to recommend the stock as a “buy” with an upside target of EUR 14. They particularly stressed the growth ATOSS has re-corded against the prevailing trend, as well as the strong de-velopment in sales and results. Despite increasing in price, they considered that the stock remained very attractive. Based on SES’s profit expectations of EUR 0.88 per share for 2009, the analysts put the cash-adjusted P/E ratio at just 6. Following publication of the provisional figures for the first half-year, SES repeated this estimate under the headline “More successful than ever – despite the recession”.

media interest has increased considerablyIn the course of the first half of the year, there has been a welcome increase in media interest in the development in business at ATOSS. Daily newspapers, stock market infor-mation services, journals and internet portals have all in-troduced their readers to the stock. This strong response is all the more gratifying given the generally low interest in small caps. The Management Board will therefore continue to take every opportunity to enter into discussions with jour-nalists in order to further increase awareness of ATOSS.

aGm approves higher dividendAt the annual general meeting on April 30, 2009 the com-pany‘s proposals were approved by shareholders with clear majorities ranging between 99.17 percent and 100 percent. A dividend of EUR 0.44 was approved, up from EUR 0.31 in the preceding year, with the remaining unappropriated net profit of almost EUR 3.4 million carried forward to new ac-count. The shareholders also approved a new authorization to purchase or sell treasury stock and create new autho-rized capital.

Contrary to the usual procedure, the Management Board had simply proposed an authorization to increase capital by up to 10 percent of the existing capital stock. The intention was to take account of the fact that with its substantial li-quidity and existing holdings of treasury stock, ATOSS is al-ready very well prepared for possible participating inter-ests. Moreover the Management Board also wished to avoid dilution of shareholders’ present holdings.

transparent communication will continueA policy of open and reliable communication enables share-holders to keep abreast of developments at ATOSS. As busi-ness has developed along highly positive lines in recent years, this policy has proven its worth. We enjoy a high level of trust among investors. Despite the generally disastrous developments on the stock market, an investment in ATOSS shares has yielded strong returns. Added to this have been substantial dividends that have been largely tax-free.

Our open communication, the maximum security with which our liquid assets are invested, the continuing strong com-mitment to our own research and development and our sound balance sheet will continue to earn ATOSS the in-creasing confidence of the capital market. Despite the strong performance of the company to date, we shall re-main cautious in our forecasts. All of the analysts‘ studies, press releases, reports, de-tailed information on the annual general meetings and com-pliance by ATOSS are filed on our website at www.atoss.com under the heading of Investor Relations. Here, too, we con-sistently adhere to our aspiration to provide up to date, comprehensive and transparent data.

ATOSS Kunde XXXXXXX

Group maNaGemeNt report

«In Q2 2009, operating in a recessive environment and under difficult overall conditions, ATOSS has added new chapters to the success story of the last years. Once again, both revenue and earnings rose significantly, and the order book remains at a gratifyingly high level. We are also taking a confident stance with a look to the second half of the year.»

atoSS customer Strenesse

H a l f - Y e a r l Y r e p o r t 2 0 0 910 11G r o u p m a N a G e m e N t r e p o r t10

6. risks associated with future developmentThere has been no change in the company’s risk structure relative to the description contained in the consolidated fi-nancial statements to December 31, 2008.

As in the past, the company’s investment policy continues to focus on preserving the value of freely available resources.

7. events after the balance sheet closing dateThere have been no reportable events of particular import subsequent to June 30, 2009.

8. outlookWith all of the key figures for the development in business remaining highly positive in both the fourth quarter of 2008 and the first half-year of 2009, the Management Board has consolidated its future outlook. The Management Board ac-cordingly expects last year’s record figures for sales and results to at least be equaled in the current year.

1. Business and conditions: itc market more stable than the rest of the economyFollowing a pause in growth, the German high-tech market is set for a rapid recovery. According to the current forecast by industry association BITKOM, turnover in information technology and communications (ITC) products and services in Germany will decline by 2.5 percent in 2009. Next year the market is expected to grow once more by 0.3 percent.

In times of crisis there is a demand for IT solutions that will enable businesses to become more efficient and to save costs. The ITC sector is making substantial contributions to overcoming the crisis.

2. earnings situation: Growth in virtually all areas In the first half-year ATOSS succeeded in recording growth in all areas. Only hardware sales, which are not part of our core business, registered a decline. Sales of software li-censes were up 11 percent at EUR 3.1 million (previous year: EUR 2.8 million), while development in software mainte-nance remained consistently positive with growth of 7 per-cent lifting turnover to EUR 5.2 million (previous year: EUR 4.9 million. As a result of its business model, ATOSS is based on a very stable foundation. In the first half of 2009 the com-pany generated overall sales revenues of EUR 14.2 million, compared with EUR 13.3 million in the preceding year.

Thanks to high levels of capacity utilization and the consid-erable commitment of our consultants, turnover in services again developed strongly. Sales rose by 13 percent from EUR 3.7 million to EUR 4.2 million. This gratifying progress is attributable not least to the effort ATOSS has for some years devoted to developing both personnel and expertise.

The operating profit (EBIT) in particular at EUR 2.9 million was 7 percent higher than the previous year’s figure of EUR 2.7 million.

Earnings after taxes to June 30, 2009 came in at EUR 2.1 mil-lion, representing growth of 20 percent relative to the EUR 1.7 million recorded in the same period last year. Earn-ings per share accordingly rose from EUR 0.43 to EUR 0.52.

Orders on hand for software licenses on June 30, 2009 amounted to EUR 3.6 million, a significant increase over the previous year’s figure of EUR 2 million. Against this back-ground, even in a difficult economic environment the com-pany is confident that it will achieve its profit targets for fi-nancial year 2009.

3. Net assets and financial positionIn the second quarter and indeed in the first half-year, op-erating cash flow developed strongly, increasing from EUR 0.5 million in the previous year to EUR 3.5 million. Li-quidity (cash and marketable securities) was increased from EUR 12.5 million to EUR 15.5 million, despite the pay-ment of a dividend of EUR 0.44 per share (previous year: EUR 0.31) at the beginning of May which resulted in an out-flow of EUR 1.7 million. Liquidity per share on June 30, 2009 accordingly stood at EUR 3.93 (previous year: EUR 3.12). In addition to net earnings, positive factors impacting cash flow included in particular an increase in deferred revenues due to the invoicing of maintenance charges, the accrual of liabilities and a tax refund from the previous year. Receiv-ables remain at a very low and stable level, amounting to EUR 3.3 million (previous year: EUR 3.4 million).

As a result of the gratifying development in business, the equity ratio rose to 61 percent of total capital. Consequently, the company remains extremely well capitalized, with sol-vency assured at all times.

4. product developmentATOSS continues to intensively pursue the development of both new and existing products. Product development costs rose by 13 percent in the first six months to stand at EUR 2.7 million, compared with EUR 2.4 million in the pre-ceding year. As in the year before, development costs equate to 19 percent of overall sales.

The company continues to refrain from capitalizing the ex-pense of developing new products. All expenditure for this purpose is recognized in the income statement in the period in which it is incurred.

5. employeesOver the past twelve months the number of employees has risen by 8 percent from 207 to 224. On June 30, 2009 ATOSS employed 91 software developers (previous year: 75), with a further 64 staff employed in consulting (previous year: 59) and 34 in sales and marketing (previous year: 33).

Personnel costs for the first six months of the current fi-nancial year increased to EUR 7.2 million (previous year: EUR 6.4 million).



12 13G r o u p m a N a G e m e N t r e p o r t

atoSS customer luxair

1514 B a l a N c e S H e e t

BalaNce SHeet to 30.06.2009 iN eur

assets 30.06.2009 31.12.2008

Non-current assets

Tangible fixed assets (net) 653,333 552,672

Intangible assets (net) 117,538 141,333

Deferred taxes 337,898 305,877

total non-current assets 1,108,769 999,882

current assets

Inventories 23,155 9,375

Trade accounts receivable (net) 3,308,564 3,455,286

Other current assets 793,657 977,556

Cash and cash equivalents 15,548,877 14,000,412

total current assets 19,674,253 18,442,629

total assets 20,783,022 19,442,511

equity and liabilities 30.06.2009 31.12.2008

equity

Subscribed capital 4,025,667 4,025,667

Capital reserve -246,223 -248,453

Treasury stock -589,084 -562,617

Unappropriated net income 9,588,626 9,252,962

total equity 12,778,986 12,467,559

Non-current liabilities

Convertible bonds 23,000 24,000

Pension provisions 1,769,068 1,176,896

Deferred taxes 412,205 225,612

total non-current liabilities 2,204,273 1,426,508

current liabilities

Trade accounts payable 412,516 226,430

Short-term accruals 2,053,393 3,045,828

Deferred revenues 2,394,123 1,485,910

Tax provisions 225,268 269,421

Other current liabilities 714,463 520,855

total current liabilities 5,799,763 5,548,444

total equity and liabilities 20,783,022 19,442,511

BalaNce SHeet


caSH floW StatemeNt

caSH floW StatemeNt from 01.01. to 30.06.2009 iN eur

01.01.2009- 30.06.2009

01.01.2008- 30.06.2008

Net profit 2,074,794 1,730,796

Depreciation of fixed assets 182,231 181,306

Loss incurred on the disposal of fixed assets -42,176 94

Changes in deferred taxes 154,571 124,269

Provisions for pension commitments 592,172 -15,314

change in net current assets

Trade accounts receivable 146,722 -1,094,067

Inventories and other current assets 170,119 -85,625

Trade accounts payable 186,087 -104,238

Short-term accruals -992,435 -1,316,178

Deferred revenues 908,213 617,527

Tax provisions -44,153 189,626

Other current liabilities 193,608 293,665

cash flow generated through business operations (1) 3,529,753 521,860

cash flow from investment activities

Acquisition of tangible and intangible assets -259,122 -261,212

Disposal of tangible fixed assets 42,200

cash flow generated through investment activities (2) -216,922 -261,212

cash flow from financing activities

Expenditure for the purchase of treasury stock -30,416 -48,510

Income from the sale of treasury stock 5,180 30,579

Dividend payments -1,739,130 -1,238,812

cash flow generated through financing activities (3) -1,764,366 -1,256,743

Changes in liquidity1 – total of (1) to (3) 1,548,465 -996,095

Liquidity1 at the beginning of the period 14,000,412 13,467,767

Liquidity1 at the end of the period 15,548,877 12,471,672

iNcome StatemeNt from 01.01. to 30.06.2009 iN eur

Quarterly report Half-yearly report

01.04.2009- 30.06.2009

01.04.2008- 30.06.2008

01.01.2009- 30.06.2009

01.01.2008- 30.06.2008

Sales revenues 7,025,920 6,920,720 14,157,428 13,319,337

Cost of sales -2,261,842 -2,251,430 -4,358,782 -4,409,446

Gross profit on sales 4,764,078 4,669,290 9,798,646 8,909,891

Marketing costs -1,391,872 -1,346,145 -2,840,531 -2,654,266

Administration costs -621,449 -641,642 -1,234,149 -1,181,467

Research and development costs -1,367,847 -1,236,106 -2,737,038 -2,352,051

Other operating income 3,765 21,806 25,974 61,355

Other operating expenses 18,523 -38.319 -87,222 -48,898

operating result (eBit) 1,405,199 1,428,884 2,925,680 2,734,564

Interest and similar income 77,286 139,866 173,917 288,311

Interest and similar expenses -10,557 -19,891 -21,107 -467,523

income before taxes 1,471,928 1,548,859 3,078,490 2,555,352

Taxes on income and earnings -477,241 -502,729 -1,003,696 -824,556

Net profit 994,687 1,046,130 2,074,794 1,730,796

Earnings per share (undiluted) 0.25 0.26 0.52 0.43

Earnings per share (diluted) 0.25 0.26 0.52 0.43

Average number of shares in circulation (undiluted)

3,953,568 3,996,167 3,953,275 3,995,586

Average number of shares in circulation (undiluted)

3,976,568 4,025,667 3,976,892 4,026,888

iNcome StatemeNt

16 17H a l f - Y e a r l Y r e p o r t 2 0 0 9


i N c o m e S t a t e m e N t i c a S H f l o W S t a t e m e N t

1 Liquidity: Cash and marketable securities

atoSS customer adelholzener

StatemeNt of cHaNGeS iN eQuitY

cHaNGeS iN coNSoliDateD eQuitY aS of 30.06.2009 iN eur

Subscribed capital

capital reserve treasury stock unapp. ret.earnings

total

as of 01.01.2008 4,025,667 -134,511 -406,608 6,981,913 10,466,461

Net profit 0 0 0 1,730,796 1,730,796

Sale of treasury stock 0 -78,260 92,850 0 14,590

Purchase of treasury stock 0 0 -26,100 -26,100

Dividend -1,238,812 -1,238,812

as of 30.06.2008 4,025,667 -212,770 -339,858 7,473,898 10,946,936

as of 01.01.2009 4,025,667 -248,453 -562,618 9,252,962 12,467,558

Net profit 0 0 0 2,074,794 2,074,794

Sale of treasury stock 0 2,230 3,950 0 6,180

Purchase of treasury stock 0 0 -30,416 0 -30,416

Dividend -1,739,130 -1,739,130

as of 30.06.2009 4,025,667 -246,223 -589,084 9,588,626 12,778,986

One share represents 1 Euro of subscribed capital.



18 19S t a t e m e N t o f c H a N G e S i N e Q u i t Y

N o t e S

1. GeneralThe present report has been prepared in accordance with International Financial Reporting Stan-dards (IFRS) in compliance with IAS 1.14. In particular the report complies with the provisions con-tained in IAS 34 “Interim Financial Reporting”. The requirements contained in German Accounting Standard (DRS) No. 6 regarding interim reporting have likewise been fulfilled.

In accordance with IAS 34.20, the present statements include a consolidated balance sheet, consoli-dated income statement, consolidated cash flow statement, consolidated statement of changes in equity and explanatory notes to the consolidated statements.

The same financial accounting, valuation and computation methods have been applied as in the case of the annual financial statements.

The Management Board is satisfied that the impression of the economic situation of the company, its net assets, financial position, earnings situation and cash flow conveyed by the present half-yearly financial statements accords with the true facts. This interim report has not undergone an auditor’s inspection or statutory audit.

2. reporting period The present interim report was prepared to June 30, 2009, for the reporting period from January 01, 2009 to that date.

3. currencyAll figures are stated in euro. Figures are rounded up to whole euro units.

4. Group of consolidated companies In addition to the parent company ATOSS Software AG, Munich, the consolidated financial statements to June 30, 2009 also include all subsidiary companies:

ATOSS CSD Software GmbH, Cham, GermanyATOSS Software Ges.mbH, Vienna, AustriaATOSS Software AG, Zurich, SwitzerlandATOSS Software S.R.L., Timisoara, Romania

These companies are fully consolidated.

5. changes in equityThe development in equity is evident from the statement of changes in consolidated equity.

«This year again, the consistency with which ATOSS Soft-ware AG charts its course, as well as the reliability of its statements and products, substantiate the trust that our customers and business partners, as well as our colleagues and shareholders, place in us and our business decisions.»

20 H a l f - Y e a r l Y r e p o r t 2 0 0 9


NoteS to tHe coNSo-liDateD fiNaNcial StatemeNt

21

6. treasury stockIn the first six months of the financial year 1,000 treasury shares were dispensed in response to the exercise of convertible bonds and 4,205 shares were acquired. On June 30, 2009 the company held 72,099 treasury shares acquired at an average price of EUR 8.17. Treasury stock is reported as a separate equity item at cost of acquisition

7. Sales revenuesThe company’s sales revenues were composed as follows:

The geographic breakdown of sales revenues was as follows:

8. personnel costsThe consolidated personnel costs to June 30, 2009 were composed as follows:

Provisions for personnel costs for financial year 2008 were not utilized in full. In the current financial year, provisions were liquidated in line with costs incurred, thereby reducing the personnel costs. In thus far the company has altered the balance sheet accounting practice employed in the preceding year, by liquidating provisions for personnel costs and reporting these as other operating income. The previ-ous year’s figures were adjusted accordingly in order to make it possible to make a year-on-year com-parison.

As a result of an increase in pension provisions, pension costs were higher than the previous year.

9. other operating income and expensesThe company reported other operating income of EUR 25,974 in the first six months of the current fi-nancial year (previous year: EUR 61,355). This revenue relates primarily to rental income. With respect to the release of provisions, the company has changed its accounting methodology compared with the previous year, and, from the current 2009 financial year, releases provisions against the correspond-ing type of expense. Other operating expenses of EUR 87,222 (previous year: EUR 48,898) relate pri-marily to bad debt allowances for receivables.

10. financial investment income and expenditureIn the first six months of the current financial year the company recorded income in the amount of EUR 173,917 (previous year: EUR 288,311) from financial investments. This was comprised of interest earnings on fixed-term and current account deposits.

The company also recorded expenses in the first half of 2009 amounting to EUR 21,107 (previous year: EUR 467,523). This essentially concerned financial expenses in connection with pension provisions amounting to EUR 20,860 (previous year: EUR 30,139).

11. tax expensesConsolidated tax expenses to June 30, 2009 were comprised as follows:

12. earnings per shareThe figure for earnings per share is arrived at by dividing the result for the period in the amount of EUR 2,074,794 by the weighted average number of shares outstanding. From January 1 to June 30, 2009 there were an average of 3,953,275 shares in circulation. Thus earnings per share for this period amounted to EUR 0.52, in comparison with EUR 0.43 in the first six months of the preceding year.

In order to calculate diluted earnings per share, the result for the period must be adjusted to allow for the interest cost relating to convertible bonds in the amount of EUR 247 (previous year: EUR 348). In addition the average number of shares outstanding is increased with the inclusion of shares poten-tially issued as a result of convertible bonds. From January 1 to June 30, 2009, there were an average of 23,000 convertible bonds in circulation. Thus the diluted earnings per share for this period amount-ed to EUR 0.52, in comparison with EUR 0.43 in the preceding year.

N o t e S

eur 01.01.200930.06.2009

01.01.200830.06.2008

Germany 13,126,307 11,827,235

Austria 577,821 1,064,157

Switzerland 231,995 365,717

German-speaking territories in total 13,936,123 13,257,109

Other countries 221,305 62,228

total sales revenues 14,157,428 13,319,337

eur 01.01.200930.06.2009

01.01.200830.06.2008

Wages and salaries 5,475,489 5,324,536

Social security contributions and expenditure on retirement pensions and welfare 1,700,332 1,085,310

total personnel costs 7,175,821 6,409,846



22 23

eur 01.01.200930.06.2009

01.01.200830.06.2008

Software licenses 3,125,590 2,819,569

Software maintenance 5,224,410 4,893,689

total software 8,350,000 7,713,258

Consulting 4,149,777 3,663,822

Hardware 908,836 1,539,735

Other 748,815 402,522


eur 01.01.200930.06.2009

01.01.200830.06.2008

pre-tax earnings as per ifrS 3,078,490 2,555,352

Expected tax charge (2008: 32,98%, 2007: 40,86%) -1,015,286 -842,755

Non-deductible operating expenses -8,257 -10,807

Differences in tax rates at consolidated companies 19,847 29,004

actual Group tax charge -1,003,696 -824,556

13. Segment reportingThe company has only one standard segment related to its business field, which comprises the cre-ation, sale and implementation of software solutions for the efficient deployment of human resourc-es. In geographic terms too, the German-speaking region represents a coherent segment.

The individual software solutions comprise:

atoSS Staff efficiency Suite (aSeS) und atoSS Startup edition (aSe)ASES and ASE are working time management and personnel resource planning solutions for customers of all sizes and in all industries. These software solutions are generally accompanied by other services covering implementation and training. In addition consulting services are rendered with the object of making meaningful use of the available scope and developing optimum solutions for the efficient deploy-ment of personnel under specific operating conditions and in consideration of works agreements and industry-wide pay deals. The company also sells hardware components for time recording and access control purposes. ASES/ASE software is used with all major standard system platforms and databases. Moreover thanks to the extensive facility to define customer-specific parameters these solutions are capable of satisfying even the most sophisticated requirements of customers of all sizes in all industries.

atoSS time control (atc)ATC offers a software solution to working time management and personnel resource planning for small and medium-sized customers as well as large but decentrally organized clients. Likewise in conjunc-tion with ATC, ATOSS offers software implementation and training as well as consulting services. Mer-chandise including hardware and recording media is also available. ATC software is installed on the Microsoft Windows system platform with standard SQL databases and is particularly user-friendly and convenient for small to medium-sized customers as well as large decentralized organizations.

14. employeesOn June 30, 2009 the company had 224 employees.

15. members of the management Board The company’s Management Board continued to comprise two members:

16. Supervisory BoardThe company’s Supervisory Board as of June 30, 2009 comprised three members:

17. Board members’ shareholdingsOn the reporting date of June 30, 2009, board members held the following numbers of ATOSS shares:

18. convertible bonds held by board membersOn June 30, 2009 board members held the following number of bonds convertible into ATOSS shares:

30.06.2009 31.03.2009 31.12.2008 30.09.2008 30.06.2008

Andreas F.J. Obereder 1,981,184 1,981,184 1,981,184 1,981,184 1,981,184

Peter Kirn 29,760 29,760 29,760 29,760 29,760

30.06.2009 31.03.2009 31.12.2008 30.09.2008 30.06.2008

Christof Leiber 5,000 5,000 5,000 5,000 5,000

eur 01.01.200930.06.2009

01.01.200830.06.2008

Sales revenues

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 13,194,679 12,098,541

ATOSS Time Control (ATC) 962,749 1,220,796


operating result (eBit)

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 2,841,259 2,626,065

ATOSS Time Control (ATC) 84,421 108,499

total operating result (eBit) 2,925,680 2,734,564

30.06.2009 30.06.2008

Development 91 75

Consulting 64 59

Sales and marketing 35 40

Administration 34 33

total 224 207

Andreas F.J. Obereder Chief Executive Officer

Christof Leiber Member of the Management Board

Peter Kirn Chairman

Fritz Fleischmann Deputy Chairman

Rolf Baron Vielhauer von Hohenhau Member of the Supervisory Board



24 25N o t e S

19. convertible bondsIn the first six months of financial year 2009 1,000 convertible bonds were exercised. As of June 30, 2009 there were 23,000 convertible bonds outstanding.

Details of outstanding convertible bonds held by board members and employees are summarized in the following table:

20. Notifiable participating interestsIn the first six months of financial year 2009 the company received no notifications regarding changes in participating interests pursuant to §§ 21 ff. of the German Securities Trading Act.

21. Business transactions with closely related personsA business relationship exists with the wife of the Chief Executive Officer, from whom the company rents business premises in Meerbusch. The premises concerned comprise 1,176 m2 of office space for which rental costs in the amount of EUR 114,402 (previous year: EUR 114,402) were incurred in the first six months of the year 2009.

Moreover the wife of the Chief Executive Officer provides services to the company. In the first six months of the financial year 2009 the value of these services amounted to EUR 4,368 (previous year: EUR 3,120).

The company is satisfied that the terms agreed for these transactions are standard market terms.

22. DividendAs the result of the resolution of the annual general meeting of April 30, 2009, a dividend of EUR 0.44 per ordinary share was paid on May 4, 2009 in accordance with the proposal of the Management and Supervisory boards, entailing a total amount of EUR 1,739,130.

23. events after the balance sheet closing dateThere have been no reportable events of particular import subsequent to June 30, 2009.

exercise price in eur

outstanding options

contractual validity in years

possible rights remaining to be exercised as of

30.06.2009

Board members

6.18 5,000 2.0 5,000

employees

3.52 4,000 1.2 4,000

3.97 3,000 2.4 3,000

6.18 11,000 2.0 11,000

total 23,000 23,000

atoSS customer playmobil



26 27N o t e S

D e c l a r at i o N B Y t H e l e G a l r e p r e S e N tat i v e S i D i S c l a i m e r

We hereby give an assurance to the best of our knowledge and belief that in ac-cordance with the applicable interim reporting standards these interim consoli-dated financial statements convey an impression of the net assets, financial po-sition and earnings situation of the Group which accords with the true facts; and that the development in business including the results and the situation of the Group are so described in the interim consolidated management report as to convey an impression which likewise accords with the true facts; and that the essential opportunities and risks associated with the anticipated development of the Group in the remainder of the financial year are so described.

Munich, August 14, 2009

Andreas F.J. Obereder Christof Leiber(Chief Executive Officer) (Member of the Board of Management)

DeclaratioN BY tHe leGal repreSeNtativeS

DiSclaimer

This report contains forward-looking statements that are based on the conviction of the Management Board of ATOSS Software AG and reflect current assumptions and estima-tions. These forward-looking statements are subject to risks and uncertainties. Many facts that cannot currently be predicted may cause the actual performance and earnings of ATOSS Software AG to develop in a different manner. This could for example include the non-acceptance of newly introduced products or services, changes in the general economic and business climate, a failure to achieve efficiency and cost-reduction targets or changes in business strategy.

The Management Board is firmly convinced that the expectations embodied in these for-ward-looking statements are sound and realistic. Should, however, the above-mentioned or other unforeseeable risks materialize, ATOSS Software AG cannot guarantee that the expressed expectations will prove to be correct.



28 29

c o r p o r a t e c a l e N D a r i i m p r i N t

corporate caleNDar

October 22, 2009 Press release announcing the 9-monthly statements November 13, 2009 Publication of the 9-monthly financial statements

impriNt

RESPONSIBLE

ATOSS Software AG Am Moosfeld 3 D-81829 Munich Fon + 49. 89. 4 27 71 - 0 Fax + 49. 89. 4 27 71 - 100 www.atoss.com

INVESTOR RELATIONS CONTACT

ATOSS Software AG Investor Relations Christof Leiber Fon + 49. 89. 4 27 71 - 0 Fax + 49. 89. 4 27 71 - 100 [email protected]

OTHER OFFICESDüsseldorfFon + 49. 21 50. 9 65 - 0

FrankfurtFon + 49. 69. 66 05 99 - 0

HamburgFon + 49. 40. 27 81 63 - 0

StuttgartFon + 49. 711. 7 28 73 20 - 0

SUBSIDIARIESGermanyATOSS CSD Software GmbH, ChamFon + 49. 99 71. 85 18 - 0 Austria ATOSS Software Ges.mbH, Vienna Fon + 43. 1. 7 17 28 - 334

SwitzerlandATOSS Software AG, ZurichFon + 41. 44. 308 39 - 56

RomaniaATOSS Software SRL, TimisoaraFon + 40. 356. 71 01 82



30 31

ATOSS Software AG Am Moosfeld 3 D-81829 München Fon + 49. 89. 4 27 71 - 0 Fax + 49. 89. 4 27 71 - 100 [email protected] www.atoss.com

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