DGAP-News: USU Software AG confirms forecasts for fiscal 2013 - positive growth trend expected to continue following modest first six months thanks to CA partnership, product innovations, expanded workforce and new subsidiary BIG

ID: 1256929
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(businesspress24) - DGAP-News: USU Software AG / Key word(s): Half Year
Results/Development of Sales
USU Software AG confirms forecasts for fiscal 2013 - positive growth
trend expected to continue following modest first six months thanks to
CA partnership, product innovations, expanded workforce and new
subsidiary BIG

22.08.2013 / 10:00


Möglingen, August 22, 2013 - As anticipated, USU Software AG (ISIN
DE000A0BVU28) and its subsidiaries (hereinafter also referred to as the
'USU Group' and 'USU') were unable to improve on the strong prior-year
sales and earnings figures in the first half of 2013. The USU Group
reported IFRS consolidated sales of EUR 24,644 thousand in the period under
review, down 1.3% on the same period of the previous year (H1/2012: EUR
24,956 thousand). This was due in particular to the weaker performance of
the Service Business compared with the previous year, with new orders
proving insufficient to fully offset the expiry of several major projects
by the end of the period under review; segment sales declined to EUR 6,525
thousand as a result (H1/2012: EUR 8,175 thousand). By contrast, sales in
USU's Project Business improved to EUR 18,085 thousand (H1/2012: EUR 16,766
thousand). In the first half of the year, the USU Group made targeted
investments in the expansion of the product portfolio and the workforce in
this segment in order to ensure the successful implementation of its
medium-term growth strategy. In addition to the majority acquisition of the
social media company BIG Social Media GmbH ('BIG'), the workforce increased
organically by more than 100 employees year-on-year to the current figure
of 436 employees to the end of the second quarter in 2013 (June 30, 2012:
334 employees), which led to a corresponding rise in the Group-wide cost
base. This also reflected the intensification of the USU Group's research

and development activities with a view to expanding the product range and
expenses for finalizing the combination of USU's license management
software with the IT asset management software of its US-based partner CA
Technologies. Following the successful acceptance of this product
combination by CA, USU will receive annual income of more than EUR 1
million from software sales starting from June 2013. This means that USU
will return to positive performance in its international business, which
saw a downturn in sales to EUR 3,191 thousand in the period under review
due to the commitment of resources that was required to implement this
product combination (H1/2012: EUR 4,375 thousand).

Despite the increased cost base as a result of the targeted investments in
new product innovations, the partnership with CA Technologies and the
expansion of its workforce, USU generated positive earnings before
interest, taxes, depreciation and amortization (EBITDA) of EUR 400 thousand
in the first half of 2013 (H1/2012: EUR 1,127 thousand). Taking into
account depreciation and amortization expense of EUR 717 thousand (H1/2012:
EUR 857 thousand), earnings before interest and taxes (EBIT) amounted to
EUR -317 thousand (H1/2012: EUR 270 thousand). Including the cumulative net
finance costs of EUR -99 thousand (H1/2012: EUR -139 thousand) and taxes on
income of EUR -154 thousand (H1/2012: EUR -922 thousand), the USU Group's
net loss for the first half of 2013 amounted to EUR 570 thousand (H1/2012:
EUR -791 thousand) or EUR -0.05 per share (H1/2012: EUR -0.08).
Adjusted for non-recurring effects due to acquisitions, the USU Group
generated slightly positive adjusted earnings before interest and taxes
(adjusted EBIT) of EUR 238 thousand in the first half of 2013 (H1/2012: EUR
2,878 thousand). Adjusted consolidated earnings amounted to EUR -42
thousand in the period under review (H1/2012: EUR 1,886 thousand). This
corresponds to a break-even of EUR 0.00 in terms of adjusted earnings per
share (H1/2012: EUR 0.18).

The USU Group's cash flow from operating activities improved to EUR 6,063
thousand (H1/2012: EUR 5,071 thousand), largely as a result of changes in
working capital. Accordingly, Group liquidity increased to a total of EUR
12,835 thousand (December 31, 2012: EUR 11,408 thousand). Equity amounted
to EUR 49,079 thousand as of the end of the reporting period (December 31,
2012: EUR 52,295 thousand). The decline in this item is primarily due to
the dividend payment of EUR 2,631 thousand to the shareholders of USU
Software AG in the second quarter of 2013. Based on total assets of EUR
77,320 thousand (December 31, 2012: EUR 66,721 thousand), the equity ratio
was 63.5% as of June 30, 2013 (December 31, 2012: 78.4%).

Following a modest start to fiscal 2013, the Management Board expects to
see significant sales and earnings growth in the second half of the year.
In recent quarters, the USU Group has initiated a number of new product
developments that will form the basis for organic expansion in high-margin,
rapid growing Product Business alongside the existing software portfolio.
Service Business will approach a normal level of consultant utilization
during the third quarter of 2013 following the weaker start to the year. In
addition to organic growth, the planned business expansion will be driven
by USU's new subsidiary, BIG.

Overall, the Management Board confirms its target of increasing sales for
fiscal 2013 as a whole to at least EUR 58 million (2012: EUR 51.2 million).
In addition to the expansion of Product Business, the sustainable
stabilization of Service Business is central to achieving this goal.
Adjusted EBIT is expected to rise to over EUR 8 million in the same period
(2012: EUR 7.1 million). With the Group's innovative portfolio, the
expansion of its workforce and the planned continuation of US market
penetration, the Management Board also believes that USU is well positioned
to achieve its medium-term target of consolidated sales in excess of EUR
100 million on the back of an improvement in the earnings margin in a
targeted manner by 2017.

USU Software AG
Corporate Communications
Dr. Thomas Gerick
Tel.: +49 (0) 71 41 - 48 67 440
Fax: +49 (0) 71 41 - 48 67 909
E-Mail: t.gerick(at)usu-software.de

USU Software AG
Investor Relations
Falk Sorge
D-71696 Möglingen
Tel.: +49 (0) 71 41 - 48 67 351
Fax: +49 (0) 71 41 - 48 67 108
E-Mail: f.sorge(at)usu-software.de

End of Corporate News


22.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: USU Software AG
71696 Möglingen
Phone: +49 (0)7141 4867-0
Fax: +49 (0)7141 4867-200
E-mail: info(at)usu-software.de
Internet: www.usu-software.de
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,

End of News DGAP News-Service
226984 22.08.2013

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Date: 08/22/2013 - 04:00
Language: English
News-ID 1256929
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Firma: USU Software AG
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