Leidschendam, 28 oktober 2005 - IDS Scheer, internationaal leverancier van procesmanagement- en IT-oplossingen, heeft in de eerste negen maanden van 2005 16% meer omzet behaald (230,8 miljoen euro) dan in dezelfde periode vorig jaar. In de eerste negen maanden van 2004 realiseerde IDS Scheer nog een omzet van 199 miljoen euro. ARIS, de oplossing van IDS Scheer voor Business Process Management, heeft gezorgd voor een groei van 19% bij een EBITA-marge van meer dan 25%. In het derde kwartaal van 2005 alleen al is het aantal verkochte licenties toegenomen met 26%.
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Over IDS Scheer
Softwareleverancier en consultancybedrijf IDS Scheer (Saarbrücken, Duitsland) ontwikkelt oplossingen voor Business Process Management. Met de ARIS-productreeks biedt het bedrijf klanten een geïntegreerd en compleet tool-portfolio voor ontwerp, implementatie en controle van bedrijfsprocessen. De ARIS-toolset is onderdeel van het ARIS Platform en de meest gebruikte tool ter wereld voor procesmodellering. Door een strategisch samenwerkingsverband met SAP zijn de ARIS-tools en -methodes gestandaardiseerd voor het NetWeaver-platform. IDS Scheer is in 1984 opgericht door August-Wilhelm Scheer en bedient vanuit eigen vestigingen en met partners momenteel circa 4.000 klanten in ruim 50 landen. Wereldwijd werken meer dan 2.400 mensen voor IDS Scheer. In Duitsland behoort het bedrijf tot de top-10 van IT-dienstverleners. In centraal en Oost-Europa wordt IDS Scheer beschouwd als marktleider. Het bedrijf is genoteerd aan de TecDAX van de Frankfurt Stock Echange en behoort tot de 110 grootste bedrijven in Duitsland (DAX110).
Voor meer informatie: www.ids-scheer.com
Hieronder treft u het volledige Engelstalige persbericht aan. Voor meer informatie:
IDS Scheer
Erwin Angelier
Telefoon: +31 (0)70 - 301 2040
E-mail: erwin.angelier@ids-scheer.com
Lammers van Toorenburg Benelux PR
Charly Lammers van Toorenburg
Telefoon: +31 (0) 30 - 656 5070
E-mail: ids-scheer@lvtpr.nl
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- IDS Scheer grows by 16% to 230.8 million EUR - Licenses drive growth with 26% increase in third quarter
- Product area up by 19% to 63.4 million EUR in the first nine months - Licensing grows by 26% in third quarter
- Germany region grows by 19% to 115.4 million EUR
- International business grows by 21% to 142.7 million EUR
- Ongoing consulting projects grow by 20% to 82 million EUR
- EBITA reaches 24.2 million EUR with a margin of 10.5%
- Revenue and profit forecast for full year 2005 confirmed - Further dynamic growth expected in license revenues
Saarbrücken, October 27, 2005
In the first nine months of 2005, IDS Scheer AG increased its revenue by 16% to 230.8 million EUR, compared with 199.0 million EUR in the same period of the previous year. There were no significant currency effects during the reporting period on the IDS Scheer Group's growth. With ARIS, the world's leading business process management solution, the product area in particular expanded significantly, even when compared with the strong showing of the previous year, and was able to grow by 19% with an EBITA margin of more than 25%. In the third quarter of 2005 alone, ARIS licenses increased by 26%. Following the scheduled increase in investments for worldwide sales, research and development, earnings before interest, taxes and amortization of intangible assets (EBITA) in the nine-month reporting period for the IDS Scheer Group was 24.2 million EUR, approximately the same as in the previous year (24.8 million EUR). The EBITA margin was 10.5% (previous year: 12.5%), and thus within the range for the year predicted by the company. Following the successful developments in the first three quarters, IDS Scheer is reaffirming its forecast for the entire year 2005. IDS Scheer AG anticipates double-digit revenue growth and a double-digit EBITA margin in the vicinity of 10% to 11%.
"We have announced that we will invest in our growth in order to fully utilize our available potential. We have already achieved above-average growth for the market during the first nine months," explains Helmut Kruppke, CEO and chairman of the Executive Board of IDS Scheer AG. "We are particularly proud of our success in bringing about very strong organic growth in the product area, while maintaining a margin of more than 25%. This growth is based primarily upon the world leadership position of our ARIS software solution in the market for business process management, as well as the intensification of our partnership with SAP for the joint development and marketing of ARIS and SAP NetWeaver. We will continue to strive for exceptional growth in our high-earning range of products. Our goal is to increase the share of the product business to 40% of total revenue by 2008."
Development of business segments by region In the first nine months of 2005, the German companies generated revenue of 115.4 million EUR (previous year: 96.7 million EUR), representing an increase of 19% (before segment consolidation). The EBITA of 17.1 million EUR was approximately at the level of the previous year (previous year: 17.4 million EUR). The EBITA margin decreased in comparison to the previous year's margin, from 18% to 14.8%, although it increased compared to the margin of 13.5% in the second quarter of 2005. This decrease in the margin compared to the previous year is primarily due to the scheduled increase in investments in sales and product development. The German market is also characterized by persistent pressure on daily rates.
Current clients in Germany include large companies such as Deutsche Bahn (logistics/transportation), EnBW Sales and service enterprise (utilities), Stadtverwaltung Wuppertal (public sector) and TOYOTA Kreditbank (banking). IDS Scheer generated additional project orders from the German Army (Federal Office for Defense Technology and Procurement) in the third quarter for the areas of first-aid services, logistics, and civilian-military cooperation. Outside Germany, IDS Scheer enjoyed strong growth across all four international regions of Western Europe, Central and Eastern Europe, Americas and Asia during the first three quarters. Total revenue from the international subsidiaries amounted to 142.7 million EUR (before segment consolidation). This represents an increase of 21% in comparison to the same period of 2004 (118.0 million EUR). The EBITA from the foreign subsidiaries of 7.2 million EUR was slightly below the previous year's level (previous year: 7.4 million EUR). Because of the dramatically increased business volume, the EBITA margin fell to 5.0% compared to 6.3% in the same period of the previous year. This decrease in the margin compared to the previous year was caused mainly by the restructuring expenses resulting from the acquisition of Groupe Expert and Plaut, as well as by expenses for the planned increase in new hires. During the reporting period, IDS Scheer signed contracts with a number of companies around the world. These include AGA Linde (capital goods, Sweden), Alaska Distributors (consumer goods, USA), Champ Cargosystems (IT services, Luxemburg), NATO Consultation Command and Control Agency (NC3A - public sector, Netherlands), Penny Markt (retail, Hungary), SCAC (logistics/transport, Russia) and STSL (capital goods, Taiwan), among others. IDS Scheer's most recent project success, at the end of October 2005, was a major order in Austria for 6.0 million EUR in consulting services related to business process harmonization and SAP implementation. The international paper manufacturer Mondi Business Paper contracted with IDS Scheer to perform a process-oriented implementation of the mySAP Business Suite in the areas of Global Sales, Logistics, Planning, Marketing, and Controlling in six countries.
Development in consulting and product business areas Revenue in the product business area grew by 19% in the nine-month reporting period to 63.4 million EUR (previous year: 53.3 million EUR). The EBITA increased to 15.9 million EUR (previous year: 15.0 million EUR), representing a 25.1% profit margin (previous year: 28.2%) despite the increased investments. IDS Scheer took in 23.4 million EUR from ARIS licenses in the first nine months of the year. This represents an increase of 20% compared to the high level of the previous year of 19.5 million EUR, which was positively influenced by the effect of special payments from SAP related to the SAP NetWeaver partnership. Revenue from ARIS maintenance increased by more than 12% to 8.9 million EUR (previous year: 7.9 million EUR). ARIS Services, consisting of product-related services, contributed 31.1 million EUR in revenue (previous year: 25.9 million EUR). This represents an increase of 20%. The revenue-generating measures that were implemented have already had a positive effect in the first nine months of 2005. The intensified partnership with SAP for the joint development and marketing of ARIS and SAP NetWeaver is gaining increased recognition among international clients. Revenue from the consulting area increased by 15% to 167.4 million EUR (previous year: 145.7 million EUR). This increase can be attributed in part to the Balink consulting group, which was acquired in September 2004. IDS Scheer achieved an EBITA of 8.3 million EUR (previous year: 9.8 million EUR) from consulting services, corresponding to an EBITA margin of 4.9% (previous year: 6.7%). This decrease in the margin for the area is a result of activities such as increased investments in recruiting and training new employees in the consulting area worldwide. The pressure on daily rates in the global market also made a noticeable impact.
The backlog of orders in the consulting area increased by 20% to approximately 82 million EUR (previous year: 68 million EUR) as of September 30, 2005. Compared to consulting revenue for the past three months, this represents an increase to 3.9 months' revenue (previous year: 3.8 months).
Strong scheduled increase in hiring
As of September 30, 2005, the IDS Scheer Group employed a total of 2,455 people. This represents an increase of more than 450 people (23%) compared to the same reporting date in 2004 (previous year: 1,998 employees). Aside from the 96 employees added through the acquisition of Business Logic in Russia at the beginning of the year, IDS Scheer showed a net growth of 227 employees in the first nine months. This means that the company has already hired more than the 200 new hires planned for fiscal year 2005 in the first nine months.
Earnings development and important financial figures In the first nine months of fiscal year 2005 cost of sales increased to 156.5 million EUR (previous year: 133.6 million EUR). The gross margin of 32.2% nearly reached the level of the previous year (32.9%). As announced, investments in research and development for the ARIS product line were intensified and grew by 24% to 7.3 million EUR (previous year: 5.9 million EUR). The R&D share of revenue increased during the nine-month reporting period to 3.2% of Group revenue (previous year: 2.9%), and accounted for 11.5% of revenue in the product area (previous year: 11.0%). Earnings before interest, taxes, and amortization of intangible assets (EBITA) as an operating control figure at IDS Scheer AG was 24.2 million EUR in the nine-month period, approximately the same as the previous year's figure of 24.8 million EUR. This represents an EBITA margin of 10.5% (previous year: 12.5%).
Amortization of intangible assets included scheduled amortization of the acquired customer bases in the amount of 1.1 million EUR in the nine-month period (previous year: 0.8 million EUR).
Because of the changeover from U.S. GAAP to IFRS accounting guidelines as required by law, goodwill amortization in the previous year in the amount of 2.4 million EUR was included in the third quarter of 2004 and 7.1 million EUR was included in the nine-month period of 2004. This amortization did not occur in 2005. In the following section, therefore, two figures for the previous year will be given, one according to IFRS and one according to U.S. GAAP. IDS Scheer's operating profit (EBIT) during the nine-month period was 22.2 million EUR (previous year: 16.1 million EUR [IFRS]; 23.2 million EUR [U.S. GAAP]). Earnings before taxes (EBT) reached 22.4 million EUR (previous year: 16.8 million EUR [IFRS]; 23.9 million EUR [U.S. GAAP]). With a consolidated tax ratio of 39.2% (previous year: 52.2% [IFRS], 36.6% [U.S. GAAP]), net income in the first nine months was 13.3 million EUR (previous year: 7.9 million EUR [IFRS], 15.0 million EUR [U.S. GAAP]). Earnings per share were 0.42 EUR (previous year: 0.25 EUR [IFRS]; 0.47 EUR [U.S. GAAP]). Cash flow from ongoing business activities grew to 4.5 million EUR in the first nine months of 2005 (previous year: -5.7 million EUR). As of September 30, 2005, IDS Scheer AG's cash and cash equivalents amounted to 62.2 million EUR compared to 67.6 million EUR on December 31, 2004. This decrease is due to cash payments for the acquisition of Balink and Business Logic.
Development in the third quarter of 2005 IDS Scheer Group revenue worldwide grew by 14% to 76.6 million EUR in the third quarter of 2005 (previous year: 67.4 million EUR). During the same period, EBITA amounted to 8.3 million EUR, compared to 8.7 million EUR in the previous year. Because of the increase in investment activity, the EBITA margin decreased to 10.9%, compared with 13.0% in the same quarter of the previous year. Operating profit (EBIT) reached 7.7 million EUR (previous year: 5.6 million EUR [IFRS]; 8.0 million EUR [U.S. GAAP]).
The Germany segment increased revenue during the third quarter of 2005 by 19% (before segment consolidation) to 38.6 million EUR, and achieved an EBITA of 6.6 million EUR, equivalent to the same quarter last year. The EBITA margin was 17.1% (previous year: 20.4%). The foreign subsidiaries increased revenue by 14% (before segment consolidation) to 46.5 million EUR. The EBITA of 1.8 million EUR (previous year: 2.1 million EUR) corresponds to an EBITA margin of 3.9% (previous year: 5.1%). The international margin was influenced by a number of factors during the nine-month period, including the intensified expansion of international sales, the short-term postponement of projects, and the final results of the restructuring expenditures for the Group's European acquisitions. IDS Scheer therefore expects that the international margin in the fourth quarter of 2005 will once again increase significantly, and will exceed the previous year's margin for the year 2005 as a whole.
IDS Scheer was able to achieve particularly strong growth with ARIS Platform. The sale of ARIS licenses in the third quarter of 2005 helped the company to achieve a record growth of 26% over the already very strong result from the same quarter last year: Revenues from licenses grew 7.0 million EUR (previous year: 5.6 million EUR). Maintenance revenue increased by 11% to 3.1 million EUR; ARIS Services grew by 12% to 10.3 million EUR. Total revenue in the product business area (including licenses, maintenance, and ARIS Services) grew by 16% to 20.4 million EUR in the third quarter of 2005. The EBITA in the product area increased by 19% to 5.2 million EUR, representing a growing EBITA margin of 25.3% (previous year: 24.8%). The consulting area generated revenue of 56.3 million EUR, representing an increase of 13%. EBITA reached 3.2 million EUR (previous year: 4.4 million EUR), representing an EBITA margin of 5.6% (previous year: 8.8%). A positive earnings trend emerged over the course of the year: After achieving an EBITA of 2.6 million EUR and a margin of 4.6% in each of the first two quarters of 2005, earnings increased significantly in the consulting business. Earnings before taxes (EBT) and minority interests during the third quarter of 2005 increased to 7.7 million EUR (previous year: 5.7 million EUR [IFRS]; 8.0 million EUR [U.S. GAAP]). The IDS Scheer Group net profit for the quarter reached 4.4 million EUR (previous year: 2.5 million EUR [IFRS]; 4.9 million EUR [U.S. GAAP]). Earnings per share were 0.14 EUR (previous year: 0.08 EUR [IFRS]; 0.15 EUR [U.S. GAAP]). In the third quarter of 2005, IDS Scheer achieved a positive operating cash flow of 3.4 million EUR (previous year: -4.5 million EUR).