ATOSS Software AG: Management Board aiming for 12th record year in succession

For the twelfth year in succession, ATOSS Software AG has recorded highly gratifying business developments. Once again in the current year, with its innovative product ideas and state-of-the-art software solutions, the Munich specialist has succeeded in convincing a large number of prominent companies to choose ATOSS as their partner for workforce management. Above all the strategy of offering a comprehensive range of solution suites for businesses of all sizes, as well on-premises as in the Cloud, has proven very successful for ATOSS. This is clearly evident in the change in other revenues, the heading under which cloud business revenues are currently reported, which was 51 percent higher than in the year before.

The positive development in business operations coupled with stable growth underscores the success of the ATOSS Software AG business model. With sales totaling EUR 40.0 million (previous year: EUR 36.5 million), turnover in software licenses, the main driver of growth, rose by 14 percent in the reporting period. The positive development in software maintenance, which has been constant for some years now, was successfully continued, with sales climbing 10 percent to EUR 14.7 million (previous year: EUR 13.4 million). As a result, software sales amounted to EUR 24.0 million in total (previous year: EUR 21.5 million), representing a proportion of 60 percent of total sales. In the field of consulting – supported by the excellent order book for implementation services following the sales of licenses – ATOSS increased sales by 10 percent to EUR 10.8 million (previous year: EUR 9.9 million). Hardware sales came in at EUR 2.7 (previous year: EUR 3.5 million). Other sales revenues at EUR 2.6 million were up by 51 percent over the previous year’s figure of EUR 1.7 million, thanks to the successful establishment and development of the cloud business.

The return on sales based on EBIT stood at 26 percent, despite the substantial increase in expenditure relative to the year before, particularly on research and development, as well as higher personnel costs resulting from the increase in sales and customer services capacities in particular, which were slightly above the Management Board forecast for financial year 2017.

Thanks to this excellent development, despite the dividend payment of EUR 4.6 million on May 4, 2017, liquidity rose by 16 percent to EUR 28.7 million. The equity ratio on September 30, 2017 amounted to 49 percent (December 31, 2016: 50 percent). Once again in 2017, ATOSS continues to present a strong balance sheet and offers a sustained high level of security and excellent future prospects for customers, employees and shareholders.

Against this background, the Management Board expects to see the highly positive trend in business continue for the remainder of the financial year 2017, with full-year figures again setting a new record. As of September 30, 2017, ATOSS had booked the highest third-quarter order intake in the company’s history with new orders for software licenses and the software component of contracted Cloud subscriptions reaching EUR 4.4. million. In nine months, software orders amounted to EUR 10.8 million (previous year: EUR 9.0 million).

The overall order intake for cloud solutions as of September 30, 2017 amounted to EUR 4.2 million (previous year: EUR 1.8 million). Consequently, the order book for on-premises software licenses valued at EUR 5.6 million (previous year: EUR 6.0 million) and Cloud solutions at EUR 8.1 million (previous year: EUR 3.9 million) provides a first-class starting point for further success. Taking into account proposed investments to access new markets and the high level of expenditure of around one fifth of sales revenues for research & development, the EBIT margin is expected to remain around 25 percent.