CCEQ news
CEYONIQ increases revenue to EUR 102.1 Million
- 2001 annual result suffering from one-off costs
Bielefeld, 21 st March 2002 - CEYONIQ, a leading global supplier in the expanding market for
innovative content management solutions, achieved in a difficult market environment, a sales revenue
of EUR 102.1 Mio. compared with EUR 74.2 Mio. in the previous year. This is an increase of 37.6%.
Despite what continues to be a very challenging global software market, CEYONIQ achieved a
positive EBITDA of EUR 5.7 Mio. – (after extraordinary effects and restructuring costs, before
measures to minimize risks).
In January 2001, TREEV Inc. was acquired in the U.S.A., in order to expand the previous sales area
into U.S.A, and to incorporate strategically important solutions and products into the CEYONIQ
product portfolio. Following the acquisition of the U.S. business, it was necessary to streamline and
restructure the organization to improve productivity. During 2001, CEYONIQ AG invested significantly
in the U.S. operation meeting outstanding commitments. Following an unexpected second half, cost
reduction measures were taken, and further cost reduction measures are also in the process of
introduction at CEYONIQ Inc.. The objective for 2002 is to return the U.S. company to profitability.
In the fiscal year 2001 47.1% (61% in 2001) came from high-profit license revenue, followed by
services with 25.1% (23% in 2001), maintenance revenue with 20.1% (10% in 2001) and trade goods
with 7.7% (6% in 2001). The shift in the turnover was due to the consolidation of the U.S. subsidiary,
which took place on the 23 rd January 2001.
The extra asset values of CEYONIQ Inc., USA (formerly TREEV) and Insiders Information
Management AG, Kaiserslautern, were reduced by one-off write-downs in the amount of EUR 60.0
Mio., in order to consider the challenging global economic environment and reduced expectations.
EUR 54.0 Mio of this figure was applied to CEYONIQ Inc., which was acquired in January by issuing
6.65 mio. shares, and EUR 6.0 Mio. to Insiders, acquired solely by a share transfer.
As a safety measure to allow for outstanding risks, revaluations were carried out to receivables, which
reduced the group results by EUR 28.7 Mio.
In a year filled with unexpected challenges and tough market conditions, CEYONIQ optimized its
internal structure, making use of synergies arising from previous acquisitions. This process incurred
one-time restructuring costs of approx. EUR 8 Mio., consisting mainly of personnel costs, severance
compensation, rental charges for empty properties after closure of some locations, and other one-time
costs such as the extraordinary General Meeting of last year and the rebranding campaign.
The cost of research and development within the group was dominated by the completion of the new
product portfolio CEYONIQ Solutions and amounted to EUR 27 Mio. Research and development
costs in 2002 will be significantly lower.
The negative annual group result came to EUR –90,4 Mio. after special costs.
CEYONIQ is concentrating on the reduction of internal costs, and is consistently consolidating and
expanding its core competence. The divestment of subsidiary companies not belonging to the core
business, such as HAVI Computer Services, achieve both a reduction in operating costs and an
increase in liquidity. The expansion of the growing network of partnerships will continue, especially
abroad.
Due to the process improvements and organizational streamlining accomplished to date, CEYONIQ
will achieve a cost savings in 2002 of more than EUR 35 EUR. Following a weak 1 st Quarter due to
seasonal influences, an increased order intake is already being recorded for the 2 nd Quarter.
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