• Group revenue up 7%
• 6% growth in software business
• Consulting revenue up 7%
• Income from operations greatly improved
• Boost in net cash and cash equivalents
Walldorf, October 27, 2006. REALTECH AG’s consolidated revenue increased in the first nine months of 2006 by 7% to EUR 38.7 million (first nine months of 2005: EUR 36.1 million). Software revenue increased by 6% to EUR 7.7 million (EUR 7.2 million), while consulting revenue increased by 7% to EUR 31.0 million (EUR 28.9 million).
EBITDA (earnings before interest, taxes, depreciation, and amortization) increased substantially, reaching EUR 3.0 million (EUR 1.5 million) while EBIT (earnings before interest and taxes) rose to EUR 2.1 million (EUR 0.4 million).
Net income increased to EUR 1.4 million (EUR 0.5 million), while earnings per share were EUR 0.19 (EUR 0.10). At the end of September 2006, net cash and cash equivalents stood at EUR 27.7 million, compared to EUR 26.0 million at the end of 2005 and EUR 25.4 million at the end of last September. The company recorded a cash flow of EUR 2.2 million (EUR 3.7 million).
3rd quarter of 2006:
Group revenue is up 2% on the previous year’s figure, amounting to EUR 12.7 million (Q3/2005: EUR 12.0 million). This includes nearly no change in software revenue, which remained at EUR 2.4 million (EUR 2.3 million), and a 7% increase in the area of consulting to EUR 10.3 million (EUR 9.6 million).
EBITDA increased to reach EUR 1.3 million (EUR 0.9 million), and EBIT to reach EUR 0.9 million (EUR 0.6 million). Net income was EUR 0.4 million (EUR 0.6 million), corresponding to earnings per share of EUR 0.08 (EUR 0.11).
Outlook:
For the year 2006 as a whole, the Executive Board expects to be able to achieve a growth in revenue in the high one-figure range, as planned. As for income from operations (EBIT) in 2006, a growth rate in the lower double-figure range has been forecast. Net income at the end of the first nine month of 2006 already exceeds last year’s figure by EUR 448 thousand (85%), and the original EBIT prediction for the entire 2006 fiscal year was also already exceeded at the end of the third quarter.
Based on the latest figures, the Executive Board anticipates being able to achieve in 2006 an EBIT growth rate not less than 60% compared to prior year.
If these expectations are met, it appears possible, based on the earnings recorded by REALTECH AG, for the company to be able to afford to pay out a higher dividend next year than in 2006.
REALTECH will be publishing its report for the third quarter of 2006 on November 2, 2006.
Contact person:
Volker Hensel
Investor Relations
REALTECH AG,
69190 Walldorf
Tel.: +49 6227 837 500
Fax: +49 6227 837 9134
