QuaRteRly RepoRt Q3 - ATOSS Software AG6 QuaRteRly RepoRt Q3.2009 FactS oveRview 7 economic...

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QuaRteRly RepoRt Q3.2009

Transcript of QuaRteRly RepoRt Q3 - ATOSS Software AG6 QuaRteRly RepoRt Q3.2009 FactS oveRview 7 economic...

Page 1: QuaRteRly RepoRt Q3 - ATOSS Software AG6 QuaRteRly RepoRt Q3.2009 FactS oveRview 7 economic backGRounD economic output down by 5% in 2009. ict sector slips by around 2.5%, slight growth

QuaRteRly RepoRt Q3.2009

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atoSS customer radio ffn

«During economically challenging times in particular, ATOSS supports companies in deploying their personnel safely and efficiently. Our modern Workforce Management solutions allow them to react flexibly to current market needs and to improve processes and reduce costs.»

Q u a R t e R l y R e p o R t Q 3 . 2 0 0 92 3a t o S S

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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,

We have continued to achieve record performance in the third quarter with both sales and results to September 30 reaching new record figures. With one brief exception ATOSS has now consistently posted profits ever since the company was first founded 22 years ago. Over this long pe-riod of time we have never lost sight of our goals, and de-spite every crisis and every upheaval in the marketplace we have continued to refine and endow our business model with great stability.

With the current financial year now promising to be our fourth record year in succession, we have frequently been asked in recent months whether we are profiting from the current economic crisis. Undoubtedly, the constraints on companies to optimize processes and cut costs are inten-sified in a crisis, resulting in the current strong demand for ATOSS solutions. And yet, ATOSS does not need a crisis to succeed. Our solutions work just as well in times of growth as in times of crisis. Under both conditions our clients’ competitiveness is substantially increased by the ability to deploy their staff with greater flexibility. In matters of workforce management ATOSS is the partner our clients can rely on over the long term, not least thanks to our sus-tained and extensive investment in our own products and services.

It is this high level of investment that underpins our gratify-ing business development. We make sure that our solutions deliver the maximum possible benefits for our clients, which is why we have grown in recent years regardless of the economic cycles.

the change in technology was our springboard, now we are aiming for maximum differentiationIn 2005 we implemented a complete change in technology. We are now enjoying our fourth record year in succession.

There can be no mistaking the direct connection between our sustained investment in product performance and the success of our enterprise!

Negative as the economic climate now is, we are now once again consciously increasing our research and develop-ment (R&D) effort. Whereas sales in the period from Janu-ary to September have grown by 7 percent, our R&D expen-diture has increased by a disproportionate 11 percent. In financial year 2009 we shall invest a total of more than EUR 5 million in ensuring that our products and services offer even greater benefits for the customer.

We aim to maximize the distance between ourselves and our competitors! And given our profitability and our finan-cial position, we are in a position to continue this invest-ment policy in the future.

Flexibility is in demandMore than ever before, companies and organizations need to increase the flexibility with which their staff can be de-ployed. In this respect the crisis has indeed brought about a greater awareness of the necessity for investment and change that contrasts starkly with the economic constraints on their budgets. The reluctance of companies to spend has had a highly negative impact this year on software, and still more so on hardware purchases. According to industry as-sociation BITKOM, sales will be down by 3.2 percent for software and 6.5 percent for hardware.

Viewed against the background of our own development in sales, this means not only that ATOSS is growing against the trend in the current year, but that we are gaining addi-tional market share. What’s more, in recent months we have succeeded in winning some additional high-profile customers, particularly in the retail, healthcare and ser-

vices sectors. Together with some of these new and existing customers, in years to come we shall step up the pace of our international expansion over and beyond the German-speaking territories.

atoSS can point to a disproportionate increase in results, strong cash flow and continued growth in liquidityWith sales up 7 percent at EUR 21.4 million for the period from January to September 2009, our operating profit (EBIT) rose by 11 percent to EUR 4.4 million, while earnings per share climbed 16 percent to EUR 0.78. Growth in liquidity was particularly strong with an increase of 24 percent tak-ing the total to EUR 19.2 million, or EUR 4.85 per share. Cash flow at EUR 7.2 million was almost twice as strong as in the previous year, equivalent to 34 percent of sales. We also have an above-average equity ratio of 55 percent.

ATOSS continues to report excellent figures that reaffirm the investment security enjoyed by our clients and share-holders alike. We remain on course for record performance. With a further marked rise of 43 percent bringing the total of orders on hand for software licenses to EUR 3.2 million, the Management Board has taken the decision to raise its forecast. We now expect to achieve EBIT of around EUR 5.4 million.

on course for continued record performanceWe remain on course for further records as our increased expenditure on research and development increases our chances of continued positive development. Our goal is clear: To maximize the benefits for our customers!

One of the principal foundations underpinning the success of ATOSS is the high level of commitment on the part of our employees. We would like to take this opportunity to thank them warmly for their outstanding results!

Our thanks are due also to you, our shareholders, for the trust you have placed in us and the loyalty you have shown to our company.

Yours truly,

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

letteR to SHaReHolDeRS

Christof LeiberAndreas F.J. Obereder

4 5Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

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7F a c t S o v e R v i e w6 Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

economic backGRounD economic output down by 5% in 2009. ict sector slips by around 2.5%, slight growth expected for 2010. German software market seen down 3.2%, outlook positive.

atoSS SoFtwaRe aG atoSS remains on course for continued growth. Fourth record year in succession forecast. target: operating result of around euR 5.4 million.

FactS oveRviewconSoliDateD oveRview aS peR iFRS: 9-montH compaRiSon in euR’000

01.01.2009 - 30.09.2009

Proportion of total revenues

01.01.2008 - 30.09.2008

Proportion of total revenues

change 2009 / 2008

Software 12,440 58% 11,840 59% 5%

Software licenses 4,550 21% 4,423 22% 3%

Software maintenance 7,890 37% 7,417 37% 6%

consulting 6,136 29% 5,524 28% 11%

Hardware 1,575 7% 2,080 10% -24%

other 1,240 6% 624 3% 99%

total sales revenues 21,391 100% 20,067 100% 7%

ebitDa 4,664 22% 4,225 21% 10%

ebit 4,388 21% 3,948 20% 11%

ebt 4,595 21% 3,949 20% 16%

net income 3,098 14% 2,679 13% 16%

cash flow 7,225 34% 3,556 18% › 100%

liquidity1,2 19,182 15,425 24%

epS (EUR) 0.78 0.67 16%

employees3 232 213 9%

conSoliDateD oveRview aS peR iFRS: QuaRteRly compaRiSon in euR’000

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

Software 4,090 4,162 4,188 4,178 4,126

Software licenses 1,425 1,551 1,575 1,642 1,603

Software maintenance 2,666 2,612 2,613 2,536 2,523

consulting 1,986 2,157 1,992 1,839 1,860

Hardware 666 345 564 689 540

other 491 361 388 170 222

total sales revenues 7,233 7,026 7,132 6,876 6,748

ebitDa 1,557 1,498 1,610 1,203 1,310

ebit 1,463 1,405 1,520 1,097 1,214

ebit margin 20% 20% 21% 16% 18%

ebt 1,516 1,472 1,607 1,166 1,394

net income 1,023 995 1,080 831 948

cash flow 3,695 748 2,782 -1,055 3,034

liquidity1,2 19,182 15,549 16,680 14,000 15,425

epS (EUR) 0.26 0.26 0.27 0.21 0.24

employees3 232 224 220 226 213

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

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9i n v e S t o R R e l a t i o n S

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inveStoR RelationS

conSoliDateD oveRview aS peR iFRS: QuaRteRly compaRiSon in euR

2009 2008

Q3 Q2 Q1 Q4 Q3

High 12.65 10.00 7.80 7.60 8.90

Low 8.85 7.42 6.80 5.20 7.10

Share price at end of quarter 12.65 9.20 7.52 7.23 7.10

Treasury stock 65,099 72,099 73,099 68,894 24,500

Dividend paid per share 0.00 0.44 0.00 0.00 0.00

Cash flow per share 0.93 0.19 0.70 -0.34 0.76

Liquidity per share 4.85 3.93 4.22 3.48 3.86

EPS 0.26 0.25 0.27 0.21 0.24

EPS (diluted) 0.26 0.25 0.27 0.20 0.24

150%

140%

130%

120%

110%

100%

ATOSS Prime IG Software Performance

01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09

Share price performance consistently positive The development in the price of ATOSS stock reflects the strong fundamental development of the company itself. In the months from January to September 2009, in generally buoyant trading the price rose by a substantial 80 percent from around EUR 7 to almost EUR 13. Taking the dividend into consideration, the gain amounts to 87 percent. With this level of performance during the reporting period ATOSS has clearly outstripped indices such as the Prime IG Soft-ware (plus 38 percent) and the DAX (plus 17 percent).

Likewise in the longer term, the combination of a rising share price, dividend payments and substantial, largely tax-free special distributions have contributed to an appre-ciable increase in shareholder value.

analysts continue to rate atoSS very highlySES Research, a Warburg Group company, confirms our fi-nancial stability and the excellent quality of our balance sheet. Their analysts have also stressed our fundamentally conservative accounting policy and the consistency with which we attract new customers. In addition to our numer-ous customer references and our solidity, SES attributes the success of our enterprise to our highly specialized solu-tions based on the latest Java technology, our absolute in-dependence from any manufacturer or vendor and the high degree of compatibility of our products.

In the course of the year as figures and data have been pub-lished, SES has analyzed the company’s development and evaluated the potential offered by our stock. On every occa-sion SES has issued a “buy” rating, and has most recently in October lifted its price target from 14 to 16 euro.

Other analysts, too, have expressed optimism. For exam-ple, as part of its GBC Best of Software/IT/Media I.2009 re-search program, GBC AG presented ATOSS as an attractive and clearly under-valued long-term investment.

media response stronger this year than at any time since our flotation In addition to extensive, positive coverage in the press and stock market information services, we have once again this year enjoyed an even stronger response from the specialist financial media. Various journalists have focused on ATOSS stock and delivered their own evaluations, and the stock has also been included in the model portfolios constructed by financial market magazines. ATOSS has in fact in the course of the year proven to be one of their top performers.

Thanks to the consistency with which our success has been reported, coupled with the fact that despite the increase in the share price ATOSS stock remains attractively valued, during the year to date our market capitalization has risen substantially to a new multi-year high. Not only have large numbers of new private investors discovered ATOSS, there is also evidence of a growing interest on the part of inves-tors abroad.

Share price continues to rise in Q4, the message is being heardIn buoyant trading the price of ATOSS stock continued its upward path in October. Analysts, journalists, and also to an increasing extent institutional investors were impressed by the reports describing the development in our enterprise between January and September 2009. The growing inter-est on the part of asset managers and investment funds was particularly evident from the notable increase in one-to-one discussions in the third quarter and requests for meetings in the coming weeks.

The message is being heard! The combination of profitable growth coupled with conservative accounting, a high level of transparency and an excellent balance sheet offers the desired mix of security and future promise.

We shall continue to make every effort to fulfill the expecta-tions of investors and enhance the prosperity of our share-holders. We have but a single goal, the wellbeing of our en-terprise. Only if a course of action is good for the company will it also be in the interest of both shareholders as well as employees and customers.

This may sound self-evident, but it is not so. In our fast-paced society with its narrow focus on short-term profit, all too little attention is paid to medium- and long-term con-siderations. We at ATOSS have a certain expertise in pursu-ing long-term goals, as we have demonstrated for some 22 years now.

Further information available from: www.atoss.com

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ATOSS Kunde XXXXXXX

GRoup manaGement RepoRt

«In the third quarter of the current fiscal year, ATOSS succeeded yet again in strengthening its market position by adhering consistently to the company’s strategy. Our solid growth in an economically difficult environment further expanded our market leadership in the area of Workforce Management Software.»

atoSS customer kastner & Öhler

Q u a R t e R l y R e p o R t Q 3 . 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

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5. employeesOver the past twelve months the number of employees has risen by 9% from 213 to 232. On September 30, 2009 ATOSS employed 94 software developers (previous year: 80), with a further 68 staff employed in consulting (previous year: 62), 35 in sales and marketing (previous year: 37) and 35 in ad-ministration (previous year: 34).Personnel costs for the first nine months of the current fi-nancial year increased to EUR 10.9 million (previous year: EUR 9.9 million).

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 September 30, 2009.

8. outlookWith all of the key figures for the development in business remaining highly positive in both Q4 2008 and the first nine months of 2009, the Management Board has raised its fore-cast. The Board now expects EBIT in the order of EUR 5.4 million.

1. business and conditions: confidence returning at high-tech SmesAccording to industry association BITKOM, the information and communications technology (ICT) industry is faring better than the economy as a whole, which researchers ex-pect to register a decline of 5 percent.

By contrast, the high-tech industry is likely to emerge from the crisis without suffering major losses. The current BIT-KOM forecast indicates that turnover in information and communications technology products and services in Ger-many will slip by 2.5 percent in 2009. Next year the market is expected to grow once more by 0.1 percent.

Companies that have themselves been hard-hit by the crisis have postponed their IT investments. If these companies are to maintain their competitiveness, however, it is to be expected that the present investment backlog will soon be overcome and investment activity will recommence.

2. earnings situation: Growth in virtually all areas During the reporting period ATOSS recorded growth in vir-tually all areas. Only hardware sales, which are not part of our core business, registered a decline. Total sales reve-nues increased from EUR 20.1 million to EUR 21.4 million, up 7 percent compared with the year before. Within this to-tal, software licenses put on 3 percent, rising from EUR 4.4 million to EUR 4.6 million. There was also a con-tinuous improvement in software maintenance with turn-over increasing by 6 percent from EUR 7.4 million to EUR 7.9 million.

Thanks to high levels of capacity utilization and the consid-erable commitment of our consultants, turnover in services again developed strongly. Sales rose by 11 percent from EUR 5.5 million to EUR 6.1 million. This gratifying progress is attributable not least to the effort ATOSS has devoted to developing both personnel and expertise for some years.

At EUR 4.4 million, the operating profit (EBIT) in particular was 11 percent higher than the previous year’s figure of EUR 3.9 million.

Earnings after taxes to September 30, 2009 came in at EUR 3.1 million, representing growth of 16 percent relative to the EUR 2.7 million recorded in the same period last year. Earnings per share accordingly rose from EUR 0.67 to EUR 0.78.

Orders on hand for software licenses on September 30, 2009 amounted to EUR 3.2 million, a significant increase over the previous year’s figure of EUR 2.3 million. Against this background, even in a difficult economic environment the company remains confident and has raised its profit targets for financial year 2009.

3. net assets and financial positionOperating cash flow developed strongly during the first nine months, rising from EUR 3.6 million last year to EUR 7.2 mil-lion. Liquidity (cash and marketable securities) was in-creased from EUR 15.4 million to EUR 19.2 million, despite the payment of a dividend of EUR 0.44 per share (previous year EUR 0.31) at the beginning of May which resulted in an outflow of EUR 1.7 million (previous year EUR 1.2 million). Liquidity per share on September 30, 2009 accordingly stood at EUR 4.85 (previous year EUR 3.86).

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 and a tax re-fund from the previous year. Receivables at EUR 4.0 million were some EUR 0.5 million higher than last year, due pri-marily to the increase in business with new customers.

As a result of the gratifying development in business, the equity ratio rose to 55 percent of total capital. The company thus remains extremely well capitalized, with solvency en-sured at all times.

4. product developmentATOSS continues to intensively pursue the development of both new and existing products. Research and development costs rose by 11 percent in the first nine months to stand at EUR 4.1 million, compared with EUR 3.7 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.

12 13Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9 G R o u p m a n a G e m e n t R e p o R t

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atoSS customer wolford

1514 b a l a n c e S H e e t

balance SHeet to 30.09.2009 in euR

assets 30.09.2009 31.12.2008

non-current assets

Tangible fixed assets (net) 674,052 552,672

Intangible assets (net) 101,805 141,333

Deferred taxes 292,671 305,877

total non-current assets 1,068,528 999,882

current assets

Inventories 25,464 9,375

Trade accounts receivable (net) 3,967,483 3,455,286

Other current assets 779,800 977,556

Cash and cash equivalents 19,181,543 14,000,412

total current assets 23,954,290 18,442,629

total assets 25,022,818 19,442,511

equity and liabilities 30.09.2009 31.12.2008

equity

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

Capital reserve -260,188 -248,453

Treasury stock -531,859 -562,617

Unappropriated net income 10,611,362 9,252,962

total equity 13,844,982 12,467,559

non-current liabilities

Convertible bonds 16,000 24,000

Pension provisions 1,896,618 1,176,896

Deferred taxes 591,684 225,612

total non-current liabilities 2,504,302 1,426,508

current liabilities

Trade accounts payable 651,748 226,430

Short-term accruals 2,609,151 3,045,828

Deferred revenues 4,511,527 1,485,910

Tax provisions 235,260 269,421

Other current liabilities 665,848 520,855

total current liabilities 8,673,534 5,548,444

total equity and liabilities 25,022,818 19,442,511

balance SHeet

Q u a R t e R l y R e p o R t Q 3 . 2 0 0 914

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caSH Flow Statement

caSH Flow Statement FRom 01.01. to 30.09.2009 in euR

01.01.2009- 30.09.2009

01.01.2008- 30.09.2008

net profit 3,097,530 2,679,170

Depreciation of fixed assets 275,845 277,190

Loss incurred on the disposal of fixed assets -41,467 5,121

Changes in deferred taxes 379,278 146,331

Provisions for pension commitments 719,723 -22,972

change in net current assets

Trade accounts receivable -512,198 -204,599

Inventories and other current assets 298,708 -209,564

Trade accounts payable 425,317 -183,322

Short-term accruals -436,677 -558,384

Deferred revenues 3,025,618 2,227,180

Tax provisions -151,202 -552,201

Other current liabilities 144,993 -47,676

cash flow generated through business operations (1) 7,225,468 3,556,273

cash flow from investment activities

Acquisition of tangible and intangible assets -358,430 -368,273

Disposal of tangible fixed assets 42,200 0

cash flow generated through investment activities (2) -316,230 -368,273

cash flow from financing activities

Expenditure for the purchase of treasury stock -30,417 -48,510

Income from the sale of treasury stock 41,440 56,479

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

cash flow generated through financing activities (3) -1,728,107 -1,230,843

Changes in liquidity1 – total of (1) to (3) 5,181,131 1,957,157

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

Liquidity1 at the end of the period 19,181,543 15,424,924

income Statement FRom 01.01. to 30.09.2009 in euR

Quarterly report 9-month report

01.07.2009- 30.09.2009

01.07.2008- 30.09.2008

01.01.2009- 30.09.2009

01.01.2008- 30.09.2008

Sales revenues 7,233,467 6,748,020 21,390,896 20,067,357

Cost of sales -2,463,197 -2,129,302 -6,821,980 -6,538,747

Gross profit on sales 4,770,270 4,618,718 14,568,916 13,528,610

Marketing costs -1,489,117 -1,467,470 -4,329,637 -4,121,737

Administration costs -551,991 -622,559 -1,786,152 -1,804,027

Research and development costs -1,345,675 -1,319,081 -4,082,712 -3,671,131

Other operating income 12,287 16,169 37,289 29,308

Other operating expenses 67,312 36,314 -19,911 -12,584

operating result (ebit) 1,462,599 1,213,875 4,387,793 3,948,439

Interest and similar income 67,190 170,382 241,593 458,656

Interest and similar expenses -13,594 9,832 -34,700 -457,691

income before taxes 1,516,196 1,394,052 4,594,686 3,949,403

Taxes on income and earnings -493,460 -445,678 -1,497,156 -1,270,233

net profit 1,022,736 948,374 3,097,530 2,679,170

Earnings per share (undiluted) 0.26 0.24 0.78 0.67

Earnings per share (diluted) 0.26 0.24 0.78 0.67

Average number of shares in circulation (undiluted)

3,959,894 3,999,645 3,956,748 3,997,916

Average number of shares in circulation (diluted)

3,978,253 4,025,776 3,975,565 4,027,481

income Statement

16 17Q u a R t e R l y R e p o R t Q 3 . 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

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Statement oF cHanGeS in eQuity

cHanGeS in conSoliDateD eQuity aS oF 30.09.2009 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 2,679,170 2,679,170

Sale of treasury stock 0 -92,160 179,100 0 86,942

Purchase of treasury stock 0 0 -67,550 0 -67,550

Dividend 0 0 0 -1,238,812 -1,238,812

as of 30.09.2008 4,025,667 -226,670 -295,058 8,422,272 11,926,211

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

Net profit 0 0 0 3,097,530 3,097,530

Sale of treasury stock 0 -11,735 61,175 0 49,440

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

Dividend 0 0 0 -1,739,130 -1,739,130

as of 30.09.2009 4,025,667 -260,188 -531,859 10,611,362 13,844,982

One share represents 1 Euro of subscribed capital.

atoSS customer blG loGiSticS Group

18 19Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9 S 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

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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 convinced that this financial statement fairly presents the financial position, financial performance and cash flows of the company and adequately reflects the economic situation of the company. This interim report has not undergone an auditor’s inspection or statutory audit.

2. Reporting period The present interim report was prepared to 30.09.2009, for the reporting period from 01.01.2009 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 30.09.2009 also include all subsidiary companies:

ATOSS CSD Software GmbH, ChamATOSS 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.

«ATOSS sets itself apart not only through its technology and power of innovation, but also through its high profitability and very solid financial position.»

20 Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

noteS to tHe conSo-liDateD Financial Statement

21

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6. treasury stockIn the first nine months of the financial year 8,000 treasury shares were dispensed in response to the exercise of convertible bonds and 4,205 shares were acquired. On September 30, 2009 the company held 65,099 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 September 30, 2009 were composed as follows:

Provisions for personnel costs for financial year 2008 were not utilized in full. In the current financial year these provisions were liquidated in line with costs incurred, thereby reducing the personnel costs. In this respect the company has altered the balance sheet accounting practice employed in the preced-ing year, by liquidating provisions for personnel costs and reporting these as other operating income. In order to ensure comparability with the previous year, the figures for the previous year have likewise been adjusted.

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

9. other operating income and expensesIn the first nine months of the current financial year the company recorded other operating income in the amount of EUR 37,289 (previous year: EUR 29,308). This was comprised mainly of rental income. In respect of the liquidation of provisions for personnel costs, the company changed its balance sheet ac-counting practice relative to the preceding year. With effect from the current financial year 2009 these provisions will be liquidated in line with personnel costs incurred. The other operating expenses amounting to EUR 19,911 (previous year: EUR 12,584) essentially concerned bad debts and exchange rate differences.

10. Financial investment income and expenditureIn the first nine months of the current financial year the company recorded income in the amount of EUR 241,107 (previous year: EUR 458,656) from financial investments. This was comprised of interest earnings on fixed-term and current account deposits.

Similarly in the first nine months of the year the company recorded expenditure on financial invest-ments in the amount of EUR 34,700 (previous year: EUR 457,691). This essentially concerned financial expenses in connection with pension provisions amounting to EUR 34,253 (previous year: EUR 31,289).

11. tax expensesConsolidated tax expenses to September 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 3,097,530 by the weighted average number of shares outstanding. From January 1 to Septem-ber 30, 2009 there were an average of 3,956,748 shares in circulation. Thus earnings per share for this period amounted to EUR 0.78, in comparison with EUR 0.67 in the first nine 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 447 (previous year: EUR 616). In ad-dition hereto 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 September 30, 2009 there was an aver-age of 21,000 convertible bonds in circulation. Thus the diluted earnings per share for this period amounted to EUR 0.78, in comparison with EUR 0.67 in the preceding year.

n o t e S

euR 01.01.200930.09.2009

01.01.200830.09.2008

Germany 19,674,813 17,802,329

Austria 1,066,625 1,625,622

Switzerland 349,802 523,002

German-speaking territories in total 21,091,240 19,950,953

Other countries 299,655 116,404

total sales revenues 21,390,895 20,067,357

euR 01.01.200930.09.2009

01.01.200830.09.2008

Wages and salaries 8,509,185 8,345,080

Social security contributions and expenditure on retirement pensions and welfare 2,341,476 1,594,204

total personnel costs 10,850,662 9,939,284

22 23Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

euR 01.01.200930.09.2009

01.01.200830.09.2008

Software licenses 4,550,109 4,423,017

Software maintenance 7,890,212 7,416,831

total software 12,440,321 11,839,848

Consulting 6,135,649 5,523,855

Hardware 1,575,072 2,079,611

Other 1,239,853 624,043

total sales revenues 21,390,895 20,067,357

euR 01.01.200930.09.2009

01.01.200830.09.2008

pre-tax earnings as per iFRS 4,594,686 3,949,403

Expected tax charge (2008: 32.98%, 2007: 40.86%) -1,515,328 -1,302,513

Non-deductible operating expenses -11,270 -15,547

Differences in tax rates at consolidated companies 29,442 47,827

actual Group tax charge -1,497,156 -1,270,233

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13. Segment reportingThe company has only one uniform business segment which comprises the creation, sale and imple-mentation of software solutions directed towards the efficient deployment of personnel.

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 objective 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 September 30, 2009 the company had 232 employees.

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

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

17. board member shareholdingsOn the reporting date of September 30, 2009 board members held the following numbers of ATOSS shares:

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

30.09.2009 31.06.2009 31.03.2009 30.12.2008 30.09.2008

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

Peter Kirn 19,760 29,760 29,760 29,760 29,760

euR 01.01.200930.09.2009

01.01.200830.09.2008

Sales revenues

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 19,861,281 18,359,497

ATOSS Time Control (ATC) 1,529,614 1,707,860

total sales revenues 21,390,895 20,067,357

operating result (ebit)

ATOSS Staff Efficiency Suite (ASES) and ATOSS Startup Edition (ASE) 4,164,680 3,707,396

ATOSS Time Control (ATC) 223,600 241,043

total operating result (ebit) 4,388,280 3,948,439

30.09.2009 30.09.2008

Development 94 80

Consulting 68 62

Sales and marketing 35 37

Administration 35 34

total 232 213

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

30.09.2009 31.06.2009 31.03.2009 30.12.2008 30.09.2008

Christof Leiber 0 5,000 5,000 5,000 5,000

24 25Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9 n o t e S

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19. convertible bondsIn the first nine months of financial year 2009 some 8,000 convertible bonds were exercised. As of Sep-tember 30, 2009 there were 16,000 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 nine 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 171,603 (previous year: EUR 171,603) were incurred in the first nine months of 2009.

Moreover the wife of the Chief Executive Officer provides services to the company. In the first nine months of the year 2009 the value of these services amounted to EUR 5,980 (previous year: EUR 3,120).

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

22. DividendBy a resolution adopted by the General Meeting on April 30, 2009 in accordance with the proposal by the Management Board and Supervisory Board a dividend of EUR 0.44 per share was paid on May 4, 2009 representing a total distribution of EUR 1,739,130.

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

exercise price in euR

outstanding options

contractual validity in years

possible rights remaining to be exercised as of

30.09.2009

employees

3,52 4.000 1,0 4.000

3,97 3.000 2,1 3.000

6,18 9.000 1,7 9.000

total 16.000 16.000

atoSS customer austrian airlines

26 27Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9 n o t e S

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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, November 13, 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 29Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

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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

29.01.2010 Press release announcing preliminary results for 200912.03.2010 Publication of the annual report for 200912.03.2010 Balance sheet press conference26.04.2010 Press release announcing the 3-monthly statements30.04.2010 Annual General Meeting17.05.2010 Publication of the 3-monthly financial statements26.07.2010 Press release announcing the 6-monthly statements13.08.2010 Publication of the 6-monthly financial statements25.10.2010 Press release announcing the 9-monthly statements15.11.2010 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

INVESTORRELATIONSCONTACT

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

OTHEROFFICESDüsseldorfFon + 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 31Q u a R t e R l y R e p o R t Q 3 . 2 0 0 9

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ATOSSSoftwareAG Am Moosfeld 3 D-81829 München Fon + 49. 89. 4 27 71 - 0 Fax + 49. 89. 4 27 71 - 100 [email protected]