secunet half year results 2007: Profitable growth continues

secunet Security Networks AG, leading provider of solutions and products for IT security and high security, increased its sales by 12% to Euro 17.0 million in the first half year 2007 compared with the previous year. The business with IT security and high security is profitable: The EBIT amounted to Euro 0.4 million at the end of the half year. The volume of orders on hand lay at Euro 22.3 million as at 30 June 2007, an increase of 46% compared with the previous year figure. The company maintains its expectations for the year overall.

The secunet group generated sales of approx. Euro 17.0 million in the first half year 2007. The sales of the previous year were exceeded by 12%. The reason for this is a continued increase in demand in all fields. In Q2-2007, the sales of the secunet group increased by 5% from Euro 8.5 million in the same previous year period to approx. Euro 8.9 million.

Notwithstanding an increase of 5% in the level of employees as at 30 June 2007 (230 employees compared with 220 in the previous year), the personnel costs increased by only 1.5% compared with the first half year 2006. The amortization and depreciation fell by 1%. Due to a rise in deliveries, the cost of materials increased by 13% compared with the previous year. There was a sharp rise in the other operating expenses with +19% or, in absolute terms, Euro 0.6 million.

At the same time, fewer reserves were released with effect on the result in the first half year 2006 than in the previous year: Accordingly, the other operating income fell by Euro 0.5 million.

secunet increased its EBIT by 24% compared with 2006: In the period from January to June 2007, the secunet group achieved a result before interest and taxes (EBIT) in an amount of Euro 0.4 million compared with Euro 0.3 million in the previous year. Since the increase in the other operating expenses basically arose in the second quarter, the EBIT for Q2-2007, at Euro 0.3 million, lies 29% below the previous year figure of Euro 0.4 million. After taxes, secunet achieved a profit for the half year in an amount of Euro 0.3 million in comparison to Euro 0.2 million in the previous year.

The company is publishing the business results of the secunet divisions for the first time: In the Public Sector division which, with its activities, is directed at authorities and other governmental organizations, sales of Euro 12.3 million and an EBIT of Euro 0.3 million were achieved as at the end of the half year. The Private Sector division achieved in the same period sales in an amount of Euro 4.7 million and a result before interest and taxes of Euro 0.1 million. The Private Sector division addresses the needs of customers in the private economy.

The improved result situation is also reflected in the cash flow. Notwithstanding the outgoings in liquid funds through the payment of bonuses and the change in the short-term current assets, the cash flow from operating activities improved from Euro -8.3 million in the previous year to Euro -3.2 million in the first half year 2007.

The volume of orders on hand increased as at 30 June 2007 to Euro 22.3 million; a plus of 46% compared with the previous year.

"Our customer-oriented re-organization is showing effects in sales. Moreover, we have been able to significantly increase our foreign business”, said Dr. Rainer Baumgart, CEO of secunet Security Networks AG. "With an unchanged high demand, we are therefore confident that we will fulfill the growth expectations formulated for the year overall."

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