secunet 9-Month-Report 2009: Further growth in sales

Group sales of secunet Security Networks AG grew by 12% in the first nine months of 2009 from Euro 33.2m in the previous year to Euro 37.2m. This increase can be attributed to growth in the Government business unit, which addresses the needs of public-sector customers. As a consequence of the financial and economic crisis, business was weaker in the Private Sector division, which focuses on customers in private business. The strong growth in the Public Sector division was more than able to compensate for this.

Compared with the previous year, expenses in the secunet Group rose by 13% to Euro 38.1m in the period from January to September 2009. While depreciation and amortisation (around Euro 0.6m in 2008 and 2009) were largely unchanged and personnel expenses (up 12% to Euro 15.4m) essentially developed in line with the increase in the number of employees, the cost of materials and other operating expenses rose disproportionately in relation to sales. In comparison with the previous year, the costs of purchased materials and services increased by 16% to Euro 14.4m in the first nine months of 2009 – chiefly as a result of projects involving a high proportion of hardware. Owing to a provision for a tax back payment, other operating expenses rose by 14% to Euro 7.8m in the same period. These expenses were the main reason behind the fall in earnings before interest and taxes (EBIT) in the first nine months of 2009, from Euro 0.3m in the previous year to Euro -0.5m. After tax, the result posted for the period was Euro -0.3m (previous year: Euro 0.5m). Earnings per share for January to September 2009 amounted to Euro -0.04 compared with Euro 0.08 in the previous year.

The company’s business performance was also reflected in its cash flow. Owing to changes in current assets and provisions, cash flow dropped in the first nine months of 2009, from Euro -3.4m in the previous year to Euro -7.5m.
Looking ahead to the end of 2009 and the medium-term future, the sustained growth enjoyed during recent quarters and the high volume of orders are positive indicators. The threats to public and private IT infrastructures remain high and hence also the demand for high-quality IT security, as shown by secunet Security Networks AG’s order book: as at 30 September 2009, the volume of orders had grown by 40% in comparison with the previous year to Euro 31.0m.

“The main focus of our business to date, particularly on the results side, has always been in the fourth quarter. This will not be any different in 2009,” says Dr. Rainer Baumgart, Chairman of the Executive Board of secunet Security Networks AG, commenting on the company’s current business performance. “secunet enjoys an excellent position as a supplier of IT security for the needs of public authorities, and will continue to grow in this area. Once the crisis has ended, we also expect to see positive developments in the private sector.”