corporate news

secunet after the first six months of 2011: order intake up, EBIT improved

[Essen, 10 August 2011] secunet Security Networks AG (ISIN DE0007276503, WKN 727650), a leading German supplier of sophisticated IT security and IT security partner of the Federal Republic of Germany, today publishes its 2011 half-year financial report. The financial results for the half-year continue to be down on last year. The second quarter results show a trend reversal, however: The revenue shortfall compared to the previous year is decreasing, while EBIT is improving significantly. In the second quarter of 2011 the company saw a noticeable improvement in sales prospects, and its order book grew strongly. For this reason, secunet Security Networks AG is adhering to its existing forecast for the current financial year.

As announced, the secunet Group generated lower revenue in the first half of 2011 than in the same period last year. Revenues for January to June 2011 totalled Euro 21.7m, 16% lower than last year’s total of Euro 25.8m. The reason for this year-on-year decline was the postponement of major projects in the High-Security (SINA) business unit. Revenue in this business unit fell in the first half of 2011 (-37%, from Euro 14.9m to Euro 9.4m), while the revenue of the Government business unit (+6%, from Euro 7.0m to Euro 7.4m) and the Business Security unit (+4%, from Euro 3.4m to Euro 3.5m) both rose. The Public Sector business unit, which caters to authorities and other public-sector consumers, as well as international organisations, and which encompasses the High-Security and Government business units, contributed 77% of revenues (last year 85%) and is still the biggest contributor to group revenue.

Earnings before interest and taxes (EBIT) for the secunet Group in the first half of 2011 totalled Euro -0.8m, compared with Euro -0.1m in the first half of 2010. The first quarter of 2011 weighed down on the figures, with EBIT totalling Euro -1.4m in that quarter. While EBIT had remained negative at Euro -0.3 m in Q2 2010, it increased to Euro 0.6m in Q2 2011. This significant improvement is due to the changing composition of revenues (increased licensing and hardware business).

The result for the secunet Group for the first six months of 2011 was therefore Euro -0.6m, compared with Euro -0.2m last year. Earnings per share decreased from Euro -0.03 for the period January to June 2010, to Euro -0.10 for the same period in 2011.

Cash flow from operating activities in the first half of 2011 amounted to Euro -2.4m and was therefore almost unchanged from the same period last year (Euro -2.5m).

The secunet Group’s order book at 30 June 2011 stood at Euro 30.1m, which, compared with last year's figure of Euro 22.5m, represented an increase of 34%.

“secunet Security Networks AG’s sales situation has improved markedly in recent months,” says Dr Rainer Baumgart, Chairman of the Management Board of secunet Security Networks AG. "Clients are ordering more, which includes the German army, one of our major customers. Order intake and orders on hand are both continuing to rise. As a result, we're feeling optimistic as far as the second half of 2011 is concerned.”

Traditionally, secunet Security Networks AG records most of its business in the second half of the year. This is due to the nature of the procurement processes of public sector consumers, which make up the bulk of the clientele. This year’s figures indicate that this will also probably be the case in 2011. Business performance in 2011 will be even more reliant on the second half of the year. For these reasons, the Management Board of secunet Security Networks AG confirms its forecast for 2011. It expects revenues to be slightly lower than last year and the EBIT margin to be the same as last year.