secunet publishes 2011 Annual Financial Statements

The Group revenue of secunet Security Networks AG decreased by 7% from the previous year's value of Euro 59.5m to Euro 55.6m. The reason for this is that product business (hardware and licences) fell short of expectations due to restructuring measures implemented by major customers such as the German Armed Forces and as a result of the postponement of projects for international customers. In contrast, capacity in the service units at secunet Security Networks AG (consultancy and development) was fully utilised from the middle of 2011. However, the positive effects this brought about could not compensate for the decline in product business.

secunet works mainly for public sector consumers: 85% of revenue was generated in the Public Sector business division, of which 54% in the High Security business unit (SINA product line) and 31% in the Government business unit (e-government consultancy, IT security for authorities, biometrics and sovereign documents, ELSTER electronic tax return system). Revenue in the High Security business unit – primarily product business – fell from Euro 33.6m in the previous year to Euro 29.8m, while the Government business unit achieved a revenue increase from Euro 14.9m in 2010 to Euro 17.4m in 2011, mainly through the sale of services.

15% of the secunet Group's revenue in 2011 was generated through business with industry (Private Sector business division). Revenue declined in both the Business Security business unit (IT security for companies) and the Automotive Security business unit (IT security in vehicles and in vehicle production). These units were heavily influenced by short-term fluctuations in the investment behaviour of consumers.

Sales of secunet products and solutions outside Germany increased slightly from Euro 4.8m in 2010 to Euro 5.0m in 2011. The proportion of the Group revenue attributable to sales outside Germany grew proportionately, from 8% in the previous year to 9% in the 2011 financial year.

The earnings before interest and taxes (EBIT) of the secunet Group increased by Euro 0.2m or 6% in the 2011 financial year, rising from Euro 3.6m to Euro 3.8m. This can be attributed to the fact that in total, across all units, costs fell more sharply than sales, with the decline in selling expenses and administration costs having a particularly marked effect.

The Company's fiscal burden fell compared to the previous year, leading to a sharper increase in net income than in EBIT: net income increased by 49% from Euro 1.8m to Euro 2.7m. Earnings per share increased accordingly from Euro 0.28 to Euro 0.42.

“Due to restrained demand from our customers, we sustained a decline in sales in 2011. secunet is active in the project business, which is characterised by a high degree of volatility,” comments Rainer Baumgart, chairman of the Management Board of secunet Security Networks AG. “Since we were nonetheless able to achieve a significant increase in both EBIT and net income, we regard the 2011 financial year as satisfactory overall.”

The Management Board is optimistic about 2012. The Company is very well positioned in terms of personnel, and its portfolio of products and services is aligned to the requirements of its customers. In addition, authorities and companies showed great willingness to invest in the previous year and secunet was able to acquire several larger projects. This led to an increase in the value of the order book from Euro 26.2m in the previous year to Euro 39.5m as at 31 December 2011. The Management Board also forecasts a continued high level of incoming orders for the current year. A growth forecast for 2012 is derived from these factors: the company plans to achieve revenue of around Euro 60m, EBIT of approximately Euro 5m and net income of around Euro 3.5m.

“IT infrastructures continue to be exposed to serious threats: for this reason alone, the market for IT security will continue to grow. Furthermore, the potential advantages presented by the application of technology such as cloud computing and mobile devices are wholly dependent on IT security,” explains Dr Baumgart. “We are in a good position to meet these needs and also enjoy recognition as a partner for successful projects, not only in Germany but also internationally. It is on this basis that we look to the current 2012 financial year with optimism.”