press releases

secunet AG remains on course for growth

[Essen, 13 May 2009] In the first quarter of 2009, secunet Security Networks AG, a leading European provider of IT security and high-security products and services, has sustained its constant sales growth of the past two years. At the same time, EBIT has declined in comparison with the previous year. secunet today published its 3-Month Report 2009. The outlook for the full year has been shaped by the volatile economic circumstances: the very high order volume at the end of the quarter gives cause for optimism, but no concrete forecasts will be made.

In the first quarter of 2009, the secunet Group posted sales of EUR 12.0 million, an increase of 16% on the previous year (EUR 10.4 million). Compared with the first quarter of 2008, the share of revenue from licensing fell and, with it, the positive contribution it makes to the result. This change to the sales composition had a detrimental effect on the result. Thus earnings before interest and taxes (EBIT) fell in comparison with the previous year's value (kEUR 372), to kEUR -162. After-tax earnings for the quarter amounted to kEUR -154 in the first quarter of 2009 following kEUR 410 in the previous year; earnings per share fell from EUR 0.06 to EUR -0.02.

The expenditure items in the secunet Group rose from EUR 10.5 million in the first quarter of 2008 to EUR 12.4 million in the first quarter of 2009. Due to the increase in the share of product revenues, the cost of purchased materials and services rose by 33% to EUR 4.7 million. Personnel expenses increased by 13%, rising from EUR 4.5 million in the first three months of 2008 to EUR 5.1 million in the current year.  Other operating expenses rose by kEUR 90 to EUR 2.4 million. There has been little change in depreciation, which amounted to kEUR 192 in the first quarter of 2009.

The secunet Group is also continuing to generate its sales primarily from customers from the public sector and international organisations. 77% of sales revenue in the first quarter of 2009 (previous year: 80%) was generated in the Government and High-Security (SINA) business units.

Following the payment of variable salary components and the reduction in trade payables, the secunet Group's cash holdings fell in comparison with year-end 2008. Compared to the situation on 31 December 2008, liquid assets as of the reporting date of 31 March 2009 fell by EUR 6.3 million to EUR 9.6 million. secunet also continues to show a debt/equity ratio of 0%.

In comparison with the first quarter of the previous year, cash flow has decreased: Following EUR -3.2 million in the previous year, cash flow from operating activities in the first three months of 2009 amounted to EUR -6.1 million. The causes of this decline were the negative operating performance and more extensive changes in receivables, other assets and prepaid expenses.
As of 31 March 2009, secunet's order volume remained at a very high level. At EUR 30.3 million, it represented an increase of 58% on the previous year (EUR 19.2 million).

"secunet will continue to exploit the potential in current and forthcoming infrastructure projects," said Dr Rainer Baumgart, Chairman of secunet Security Networks AG. "This forms the basis of our growth strategy."

You can find the 3-Month Report 2009 as well as further information on the company at The Annual General Meeting of secunet Security Networks AG will take place on 27 May 2009 in Essen.