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secunet publishes 9-Month Report 2011: High volume of orders, earnings as expected

[Essen, 9 November 2011] secunet Security Networks AG (ISIN DE0007276503, WKN 727650), a leading German supplier of reliable IT security solutions and IT security partner of the Federal Republic of Germany, today publishes its 9-Month Report 2011. As expected, revenue and earnings are below the previous year's figure; the forecast for the year as a whole therefore remains unchanged. The order book continues to grow at a high rate: the medium to long-term outlook is therefore positive.

In the months from January to September 2011, the secunet Group generated revenue of EUR 32.8 million. This corresponds to a decline of 15% compared to the same reporting period of the previous year (EUR 38.4 million). The reason for this decline was the postponement of major projects in the High Security sector. With revenue of EUR 13.7 million, the High Security business unit (SINA products) shows a 36% decrease in revenue compared to the previous year (EUR 21.3 million). In contrast, business generated by services is proceeding satisfactorily and capacity utilisation in the consulting-intensive areas is correspondingly high. This can be seen in the Government business unit, where revenue for the reporting period from January to September increased by 18% from EUR 10.1 million in 2010 to EUR 11.9 million in the current year. The focus of secunet’s business continues to be on authorities and international organisations: 78% of the secunet Group's revenue in the first nine months of 2011 is attributable to this target group.

Between January and September 2011, the secunet Group generated earnings before interest and taxes (EBIT) of EUR -0.8 million. Compared to the previous year's figure of EUR 0.2 million, this corresponds to an EBIT decline of around EUR 1 million. The result for the reporting period was EUR -0.4 million compared to EUR -0.1 million in the previous year. Earnings per share for the first nine months of 2011 total EUR -0.06; in the previous year, this figure stood at EUR  0.01.

Cash flow from operating activities in the first nine months of 2011 amounted to EUR -1.0 million in comparison to EUR -1.6 million for the months of January to September 2010.

The sales-related development of secunet Security Networks AG in the first nine months of 2011 is very positive: the secunet Security Networks order book grew continuously and, as at 30 September 2011, stood at EUR 33.3 million. Compared to the figure of EUR 21.4 million on the same reporting date in the previous year, this represents a sharp increase of 56%.

"IT systems in industry as well as in governments are at high risk and the threats are currently increasing: we service a growth market. This means that there is a long-term increase in demand for our products and services. Following changes to our customers' structures, the corresponding orders have noticeably increased again during the course of the year," explains Dr Rainer Baumgart, Chairman of the Management Board of secunet Security Networks AG, adding: "Many of the projects shown in the order book generate revenue over several periods, which is the basis for our optimistic outlook over the medium to long term."

secunet's business performance during the year is always characterised by a focus on the second half of the year and a strong fourth quarter. This is due to the nature of the procurement processes of public sector consumers. The Management Board expects an especially strong fourth quarter for the 2011 financial year. secunet Security Networks AG is therefore maintaining its forecast for 2011: revenues are expected to be slightly below the previous year's level.