SYSTAR : Reports 2012/2013 Consolidated Results

2013, ending June 30, 2013, as approved by the board meeting held on July 29, 2013.
As preannounced in the press release dated July 4, 2013, revenues decreased and the break-even point was not reached during fiscal year 2012-2013 due to delayed license orders at the end of the fiscal year.
License sales of the 4th quarter were particularly impacted by the deferral of a license extension of nearly $ 3 Million by a leading American bank, otherwise a major and loyal Systar customer.

Total revenues for fiscal year 2013 stood at € 19 Million, down 17% compared to previous fiscal year. During the fiscal year, 29% of consolidated revenues came from licenses, 45% from recurring
maintenance and 26% from accompanying services. Software revenue (License and Maintenance) was €14 Million, down 16%, and accounted for 74% of consolidated revenues. Accompanying services generated revenues of € 5 Million, 21% less than the previous year, since more services have progressively been provided by an ecosystem of service provider and integration partners.
In geographic terms, 48% of revenues came from France, 36% from Europe out of France and Asia- Pacific, and 16% from North America.

Income

Combined with the investments made to launch Tornado, Systar's new technology platform, the decrease in revenue generated a consolidated current operating income of - € 1.5 Million during the fiscal year, in line with preannounced expectations.
Consolidated operating income stood at - € 1.9 Million due to a write-off of some R&D whose future value has been impaired because of the introduction of Tornado, the new technology platform. Consolidated net income was - € 2.7 Million, after a write-off of € 0.6 Million of deferred income tax. These write-offs of R&D and deferred income tax have no impact on net cash.
Systar continues to benefit from a healthy financial structure with cash net of financial debts at € 5.1
Million on June 30, 2013.

Perspectives

The revenue shortfall and the resulting loss do not call into question the fundamentals of the company and the quality of its product offering.
However, this situation has led the company to make some temporary cost adjustments in order to maintain its financial balance. These adjustments, which have started to be implemented, are focused on the reduction of subcontracting and general expenses while preserving the company's sales and R&D forces.
The go to market of Tornado, Systar's new technology platform, unfolds according to plan. Each new reference validates Systar's expectations in terms of the technology's potential, shorter sales cycles, faster implementation and easier adoption by customers and partners.
Systar should therefore return to profitable growth in the current fiscal year 2013/2014.

About Systar

Over 180 clients worldwide, including 10 of the world's 15 largest banks, rely on Systar's performance management software to transform their business and IT operations from reactive to proactive, solving problems prior to impacting the business. Systar is widely regarded as the leading provider of Business Activity Monitoring (BAM) solutions and offers innovative Virtualization Management and IT Governance software for physical and virtual server and storage environments. Systar is listed on the NYSE Euronext Paris Stock Exchange (ISIN: FR0000052854-SAR), and has offices in North America and Europe. More information about Systar is available at www.systar.com .

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