Secunet Security Networks : 3-Month Report 2014: first quarter unsatisfactory, confidence for the full year 2014

07.05.14

In the first quarter of 2014, the secunet Group generated revenue of Euro 13.8 million. Compared to revenue in the same period last year (Euro 14.1 million), this is equivalent to a decline of 3%. This development was the result of weaker performance in the product and consulting business, mainly due to the provisional budget management of the German federal authorities.

The revenue contribution of the individual segments remains unchanged. The Public Sector business unit continues to contribute the majority (75%) of revenue, with its contribution standing at Euro 10.2 million (previous year Euro 10.5 million). The Public Sector unit offers products from the SINA high-security range, as well as IT security products and services for public customers. The Business Sector business unit, which offers services and solutions to meet the specific requirements of companies in the private sector, achieved 25% of the Group revenue with Euro 3.5 million (previous year Euro 3.6 million).

In the first quarter, costs in the secunet Group rose by Euro 0.7 million or 5%, from Euro 14.3 million in the previous year to Euro 15.0 million. In conjunction with the decline in revenue of Euro 0.4 million, the earnings before interest and taxes (EBIT) fell by Euro 1.1 million. The EBIT decreased from Euro -0.2 million in the first quarter of 2013 to Euro -1.3 million in the first quarter of the current year.

The result after taxes for the period from January to March 2014 was a loss of Euro -0.9 million compared with Euro -0.1 million in the previous year. Earnings per share for the first quarter of 2014 amounted to Euro -0.14 compared with Euro -0.02 in the previous year.

At Euro 35.6 million, the order book in the secunet Group is on par with the previous year's high level.

"The first quarter did not fulfil our expectations, particularly with regard to the EBIT," commented Dr Rainer Baumgart, Chairman of the Management Board of secunet Security Networks AG. "The provisional budget management of the German financial authorities is still having a detrimental effect on secunet. But the order book level is still high and we envisage an increase in procurements in the second half of the year, which justifies our confidence across the full year and the fact that we are not changing our forecast."

For the current year 2014, the Management Board reaffirms its forecast of a significant increase in both revenue and earnings before interest and taxes (EBIT).

The 3-Month Report 2014 for secunet Security Networks AG is available to download at www.secunet.com under Investor Relations > News and Publications. Next dates in the financial calendar: 14 May 2014 Ordinary General Meeting in Essen, 6 August 2014 publication of Half-Year Financial Report.