Positive EBIT Result in Q2 by Sales Increase and Cost Reduction

Net income affected by restructuring measures Positive Cash Flow

Oberursel, February, 27, 2002 – Despite difficult market conditions, Utimaco Safeware showed successes in the last quarter of the current fiscal year 2001/2002. After a weak first quarter (EUR 5.9 million), sales revenues increased considerably to EUR 10.7 million in the second quarter. Compared to the same quarter in the previous year (EUR 9.8 million), revenues increased by 9%. The revenue for the half year equalled EUR 16.6 million (previous year: EUR 17.8 million).

As in the first quarter, Utimaco Safeware was also able to achieve considerable savings in its operative costs in the second quarter compared to the previous period. In the second quarter, savings amounted to EUR 1,6 million, and in the first half-year EUR 1,9 million compared to the same periods of the previous year.

The increase in sales and the implemented cost cutting measures led to a positive operating result (EBIT) of EUR 0.8 million (previous period: EUR – 1,7 million). Due to the negative result of the first quarter, the operating result of the first half year 2001/2002 totalled EUR – 3.2 million (previous year: EUR – 4.4 million).

The pre-tax result was reduced by EUR 3.8 million as accruals for restructuring costs caused by the split-of of the LOBs Network Security and Security Modules, and by EUR 1.8 million (for proportional losses of associated companies). For this reason, it equalled EUR – 4.8 million in the second quarter (previous year: EUR – 1.7 million). The result before taxes in the first half year of 2001/ 2002 therefore equalled EUR – 8.8 million (previous year: EUR – 4.4 million).

In the second quarter of the business year 2001/2002, the net result equalled EUR – 4.7 million (previous year: EUR – 1.2 million). The net result for the half year equalled EUR – 8.6 million (previous year: EUR – 2.9 million).

In the second quarter a positive cash flow of EUR 4.0 million (half year: EUR 3.4 million) was achieved. Liquid assets amounted to EUR 5. 1 million as of December 31, 2001.

For the third quarter of the business year 2001/2002, the company forecasts lower revenues than in the same period in the previous year, because the sales revenues from the LOBs that have been closed down will be compensated in the medium term.

Nevertheless, due to the reduction in costs, the third quarter of the business year 2001/2002 will see an better operating result than in the same period last year. Overall, Utimaco Safeware expects a positive operating result for the second half year.

Utimaco Safeware AG is one of the major European technological manufacturers of professional IT security solutions. The security technology and solutions developed by Utimaco Safeware protect the electronic data of companies and government bodies against unauthorized access and guarantees that business processes and administrative procedures in the electronic world are binding and confidential.




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