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OPENLiMiT Holding AG: Results of the First Half Year 2008
- Revenues for the first half year 2008 increased by 39% in comparison to the same period of the previous year.
- Acquisition of additional important customers, cooperations and distribution partnerships.
- New OPENLiMiT software releases.
- Generally good development of the young signature market.
- Optimistic outlook maintained for the full year 2008
OPENLiMiT and the market for OPENLiMiT products in the target markets of Germany, Switzerland and Austria have developed positively in the first half year 2008. OPENLiMiT was able to acquire several hundred new customers and, in particular, several new reference customers. On the one hand, these trigger a signal effect in the pertinent vertical markets, and on the other, they have a pioneer character for further solutions of a similar kind. The new reference customers include: ISmed Gemeinschaft, Tally WEiJL and Unfallkasse Post und Telekom. The implemented solutions reflect the broad usage spectrum for OPENLiMiT technologies, ranging from mail inbox processes, to batch processing of outbound documents (e.g., electronic invoices) to single workstation licenses to enable working with legally-binding electronic signatures for correspondence, email and authentication.
X.KEY GmbH, a company specialized in the marketing and distribution of signature solutions, was acquired as a new distribution partner in Austria.
A new technology partner, for example, is Oracle Deutschland GmbH. The focus of the cooperation with Oracle and the partner in common, Fujitsu Siemens Computers GmbH, is the extension of the Oracle middleware strategy with select OPENLiMiT technologies.
With the launch of the new OPENLiMiT website, OPENLiMiT has implemented a highly efficient and up-to-date sales and marketing tool. The market visibility was increased by the participation in numerous exhibitions and conferences in Germany, Austria, Brazil and the USA. The participation at the following exhibitions and conferences are particularly noteworthy:
CeBIT in Hannover, ITnT (Trade Fair for Information Technology and Telecommunication) in Vienna, Citrix iForum 08 in Munich, 11. Deutschen Verwaltungskongress Effizienter Staat (Efficient State) in Berlin and the 2. Berliner Signaturkonferenz (2nd Berlin Signature Conference). At these events new OPENLiMiT technologies were released, prototypes of the next OPENLiMiT product generation were exhibited and the close collaboration between OPENLiMiT and its distribution partners was demonstrated. The participation at the exhibitions resulted in numerous articles in various publications.
The product development achieved important successes. The new OPENLiMiT software was released. Special configurations and versions of the new release, one for Microsoft, one for the Deutscher Sparkassenverlag and one for the German Bundesverband der Betriebskrankenkassen (Federal Association of Health Insurers), were certified by the German Federal Office for Information Security (BSI) according to Common Criteria, an internationally recognized IT security standard. In March, the Common Criteria Certificate for the OPENLiMiT SignCubes Base Components for Microsoft InfoPath Technology was handed over by the BSI at the CeBIT. This technology opens an additional market in conjunction with Microsoft technologies for OPENLiMiT. The strategic distribution network of OPENLiMiT is selling the products.
In general, the signature market continues to develop very positively. The Federal Cabinet in Germany passed new legislation in the first half year: the Electronic Proof of Income Act (ELENA) and the electronic ID-Card (elektronischer Personalausweis, ePA). Both are very positive for the medium-term market development, as the laws advance the market penetration of signature technologies and partially even mandate their use. OPENLiMiT is technologically well prepared to take advantage of these developments, also due to its broad network of strategic distribution partners.
Operative Development of the OPENLiMiT Group
Revenues for the first half year reached CHF 1'257'584, an increase of 39% in comparison to the same period of the previous year (CHF 903'935), due to increasingly positive market conditions. With company produced additions to software development, the total income for the period increased by 25% to CHF 2'205'431, up from CHF 1'758'960 for the same half year period 2007.
Although total income increased, earnings before interest and taxes (EBIT) decreased from CHF -531'707 for the first half year 2007 to CHF -1'083'764 for the first half year 2008. The main expenses that caused an increase in EBIT loss were higher total wages/salaries and associated social insurance contributions, as the number of employees increased from 33 in the first half year 2007 to 41 in the first half year 2008, higher external service expenses, due to an increase in the number of external sales and business consultants, and substantially higher depreciation expenses, up by 563% from CHF 85'677 in the first half year 2007 to CHF 568'105, primarily based on the depreciation of accumulated company produced additions to software development.
The loss for the period consequently increased from CHF -414'579 for the first half year 2007 to CHF -1'310'123 for first half year 2008, affected also by the adverse exchange rate development between the Euro and Swiss franc (sales are predominantly invoiced in Euros, but recorded in the stronger Swiss Franc).
Cash flow from operating activities was positive for the first half year 2008, up 349% from CHF -693'507 in the first six months 2007 to CHF 1'723'760 in the first six months 2008. The positive development is primarily based on a decrease in account receivables, as customers, in particular from late December 2007, paid off their respective accounts during the current period. With minor interest received and slightly higher investments in intangible assets and equipments over the same period of the previous year, the net cash and cash equivalents position was increased from CHF -1'608'660 in the first half year 2007 to CHF 664'091 in the first half year 2008.
The OPENLiMiT management expects a similar growth pattern this year as in previous years, resulting in a high percentage of annual revenues occurring in the second half year, especially within the last quarter. Based on the projects currently in discussion, we can expect to achieve revenues of CHF 7.6m (compared to CHF 4.8m for the previous year) and a positive net income result.
OPENLiMiT develops software solutions for the application of electronic signatures and encryption, which enhance the security, provability and efficiency of electronic communication processes, workflow and data. The OPENLiMiT(TM) SignCubes Base Components 2.1 were certified according to the IT-security standard, Common Criteria EAL 4+, by the German Federal Office for Information Security (BSI). The OPENLiMiT technologies are marketed by large strategic partners.
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