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EASY SOFTWARE AG: Expected net income for the year shows upside and downside - EASY SOFTWARE AG with higher sales; increased group earnings, yet not according to plan

DGAP-News: EASY SOFTWARE AG / Key word(s): Miscellaneous EASY SOFTWARE AG: Expected net income for the year shows upside and downside - EASY SOFTWARE AG with higher sales; increased group earnings, yet not according to plan 10.03.2017 / 09:55 The issuer is solely responsible for the content of this announcement.

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Expected net income for the year shows upside and downside - EASY SOFTWARE AG with higher sales; increased group earnings, yet not according to plan


Mülheim an der Ruhr (Germany), March 10, 2017 

 

Despite deconsolidation of otris software AG (in FY 2015, its sales for the first four months were still part of the group sales of EASY SOFTWARE AG), the EASY SOFTWARE Group expects, based on temporary figures, a sales increase in the region of 4-5% for 2016 as compared to 2015. The parent company (EASY SOFTWARE AG) was able to significantly increase its sales by 13-14%.

 

Based on currently available figures, the EASY SOFTWARE Group will reach an EBITDA of EUR1.7 million to EUR1.8 million. Since the comparable income, excluding special items, of the year 2015 amounted to EUR1.4 million, despite the mistaken forecast reported ad hoc on February 14, 2017, the EASY Group still shows a significant increase by about 25%.  Moreover, the income-increasing effect from ongoing tort litigation in the above EBITDA figures for 2016 has not yet been considered.

 

The forecast deviation to the scheduled EBITDA of EUR2.8 million named in the financial statement for 2015 is essentially due to four causes:


 

1. Weaker business and currency effects in the UK and Turkey.
   
    
   
2. Despite newly-won customers, it was found that the sales cycles and go-to-market time in cloud business are longer than expected.
   
    
   
3. Moreover, there were postponements of orders before year's end. These orders could partially (in the UK, among others) be entered as backlog of orders during the first two months. It should be emphasized that these were not just license orders, but that such license sales involved significant service expense that still needs to be processed and license sales can only be billed when the service component has been rendered by qualified personnel.