secunet 9-month report 2010: growth trend continues, positive EBIT

[Essen, November 10, 2010] secunet Security Networks AG, Germany's leading provider of sophisticated IT security, published its 9-month report for 2010 today. Compared with the previous year, consolidated sales increased by 8% to 38.4 million euros in the first nine months of 2010. The company boasts positive earnings before interest and taxes (EBIT), marking a significant improvement on the previous year. The company is confirming its forecast for the financial year as a whole with sales of 57 million euros and EBIT of over 2 million euros.

The consolidated sales of secunet Security Networks AG for the first nine months of the current financial year totaled 38.4 million euros: sales increased by 2.8 million euros or around 8% on the previous year's value of 35.6 million euros. This enabled the company to maintain and build on the growth rate it had established: quarter-on-quarter, sales increased by 25% from Q3 2009 to Q3 2010. With 55% of consolidated sales, the High Security business unit that supplies the SINA family of products remains the principal revenue driver.

Earnings before interest and taxes (EBIT) in the secunet Group improved from -1.2 million euros in the first nine months of 2009 to 0.2 million euros in the same period of 2010. This improvement is due firstly to the increase of other operating earnings by around 1 million euros and secondly to the moderate increase of expenses which rose disproportionately to sales by +6% overall. Due to the lower financial result than in the previous year and the sharp rise in tax charges, earnings now amount to -0.1 million euros following -1.0 million euros in the first nine months of the previous year. Earnings per share changed from -0.16 euros to -0.01 euros.

The operative cashflow for the period from January to September 2010 improved on the previous year's value from -6.6 million euros to -1.6 million euros in the same period of the current financial year.

Consolidation of public authorities meant that several major projects – for the German Federal Armed Forces in particular – were postponed. On September 30, 2010, the company's order book was therefore worth 21.4 million euros compared to 31.0 million euros on the same reporting date in the previous year. Major new projects are expected to be commissioned.

"secunet continues to follow a definite growth course: the increasing threats to IT infrastructures and topics such as cyber wars will heighten demand for high-quality IT security products," said Dr. Rainer Baumgart, CEO of secunet Security Networks AG. "Just as with every financial year to date, the 2010 financial year will be decided in the fourth quarter. However, due to the postponement of major projects, we do not expect a similar result to last year in Q4. Our forecast is therefore remaining at sales of 57 million euros and EBIT of over 2 million euros."

The company will publish the provisional figures for the 2010 financial year on January 26, 2011.

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