Mensch und Maschine Software SE / Quarter Results
26.10.2009
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Q3 still as weak as expected, but with strong cash flows
- Development of VAR Business segment largely completed
- Outlook to Q4: cautiously optimistic
Wessling, October 26, 2009 - Mensch und Maschine Software SE (MUM - ISIN
DE0006580806), a CAD/CAM specialist company listed on the Prime Standard,
closed the third quarter 2009 within the range of expectations, with sales
on Q2 level and a red zero in earnings. However, operating cash flows
amounting to EUR 4.84 mln (PY: 12.69) surprised positively, creating a
relaxed balance sheet situation.
In the first nine months, sales amounted to EUR 121.23 mln (PY: 170.78),
operating earnings EBITA amounted to EUR 0.85 mln (PY: 7.78), and net
result after minority shares amounted to EUR -0.73 mln (PY: 4.62). The 29%
sales reduction includes currency effects amounting to approx. EUR 5.5 mln.
In local currencies the decrease was just under 26 percent.
The development of individual segments varied significantly. M+M Software
sales amounting to EUR 16.27 mln were 13.4% below previous year's EUR 18.80
mln. The maintenance contract business even grew slightly, resulting in an
increase of deferred revenues to EUR 1.71 mln (Sep 30, 2008: 1.28 / Dec 31,
2008: 0.67). The new VAR Business segment continued to grow dynamically,
already contributing EUR 24.36 mln (PY: 1.10) to group sales. Conversely,
Distribution segment sales decreased to EUR 80.60 mln (PY: 150.88). This
nominal 46.6% decrease adjusts to approx. minus 44.5% in local currencies.
It should be taken into account, however, that the transition to a VAR
business in the German speaking countries accordingly reduced sales in
Distribution. Viewing only the subsidiaries in the rest of Europe, which
are not affected by this transition, the reduction is 30.2% in Euro and
approx. 26% in local currencies.
The more positive development of the high margin segments M+M Software and
VAR Business, cannibalizing the lower margin Distribution, led to an
increase of gross yield to 30.9% (PY: 25.0%). Consequently, gross margin
came in at EUR 37.46 mln, just 12% under the previous year's amount of EUR
42.65 mln, with contributions of 38.6% (PY: 41.4%) from M+M Software and
24.9% (PY: 1.5%) from VAR Business, while the Distribution segment's share
was diluted to 36.5% (PY: 57.2%).
The transition from Distribution to VAR Business in the German speaking
markets, which had been started at the beginning of this year under the
label Market Offensive, is largely completed after further acquisitions in
Germany and Switzerland. By Sept 30, 2009, 191 of the 526 group employees
were working in this segment, and M+M was approaching full area coverage in
Germany, Austria and Switzerland, with approx. 30 locations.
Total assets increased to EUR 95.83 mln (Dec 31, 2008: 84.99 / +13%)
primarily due to first time consolidations in the course of the Market
Offensive. Due to the strong cash flows, net bank debt amounting to EUR
12.09 mln was hardly higher than at the end of last year, which together
with the low credit interest rates had a very positive impact on the
financial result. Shareholders' equity at Sep 30 amounted to EUR 28.75 mln
(Dec 31, 2008: 26.40), the capital ratio was 30.0% (Dec 31, 2008: 31.1%).
M+M CEO and major shareholder Adi Drotleff is cautiously optimistic for
Q4/2009: 'Though the unsettled market conditions still make it difficult to
give business guidance, the bottom line should be reached. For the final
quarter, we thus estimate sales in the range of EUR 42-50 mln, a sequential
increase of 16-38% over Q3. Compared to previous year (Q4/2008: EUR 52.31
mln), the decrease would go down from the first nine months' 29% to the
4-20% range. For full fiscal year 2009, this would result in sales ranging
from EUR 163-171 mln (PY: 223.10 / -23% to -27%). Operating earnings EBITA
are estimated to come in between (Q4) EUR 1.15-3.15 mln and (2009) EUR 2-4
mln (PY: 10.88). This would result in a 2009 net result in the EUR -0.5 to
+1.0 mln range (-4 to +7 Cents per share) - subject to changes in deferred
tax calculation.'
26.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/a|]]]|]
---------------------------------------------------------------------------
Language: English
Company: Mensch und Maschine Software SE
Argelsrieder Feld 5
82234 Wessling
Deutschland
Phone: +49 (0)815 3933-0
Fax: +49 (0)815 3933-100
E-mail: investor-relations@mum.de
Internet: www.mum.de
ISIN: DE0006580806
WKN: 658 080
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: Mensch und Maschine Software SE discloses nine months figures
| Source: EQS Group AG