Walldorf, July 24, 2003. REALTECH AG's revenues fell in the 1st half of 2003 by 5% to 27.7m (1st half of 2002: 29.1m). Software revenues increased slightly to 4.0m (3.9m), while consulting revenues fell by 6% to 23.7m (25.2m).
EBITDA rose to 1.8m (1.6m), while EBIT rose to 0.3m (0.1m). When comparing these figures, you should bear in mind that - seeing as the software theGuard! developed in house had become ready for marketing - REALTECH has not capitalized any further development expenditure in accordance with US GAAP since the fourth quarter of 2002. Compared to the same quarter in the previous year, this has resulted in EBIT falling by 0.5m so far in 2003.
Consolidated net income amounts to minus 0.9m (minus 0.3m), while earnings per share are minus 0.19 (minus 0.06). The company has achieved a cash flow of 2.5m (3.0m). At the end of June 2003, net cash and cash equivalents were 18.2m, compared to 16.6m at the end of 2002.
2nd quarter of 2003: Revenues fell by 6% to 14.2m (from 15.2m in the first half year of 2002). As a result of customers postponing investments, software revenues fell 22% to 2.0m (2.6m). Despite pressure on daily rates, consulting revenues - at 12.3m - were only slightly below the figure in the previous year (12.6m).
Decreases were recorded in terms of EBITDA - from 1.5m to 1.1m - and EBIT - from 0.7m to 0.4m. If the company had continued to capitalize development expenditure as in the previous year, income from operations would have been 0.3m higher. As a result of depreciation of interests in Grau Data Storage AG to the amount of 0.7m, consolidated net income dropped to minus 0.6m (0.1m), corresponding to earnings per share of minus 0.11 EUR (0.03).
Even though the economic situation remains tense, REALTECH still expects to achieve the revenue and income targets it has set itself for fiscal year 2003.
The report on the 2nd quarter of 2003 is scheduled to be published on August 7, 2003.
Contact: Volker Hensel Investor Relations REALTECH AG 69190 Walldorf Tel.: +49.6227.837.500 Fax: +49.6227.837.9134
