REALTECH AG / Key word(s): Quarter Results 30.04.2014 10:07 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- * Group revenue down 11 % to EUR 8.4 million * EBIT on par with the previous year at minus EUR 1.0 million * Slight improvement in profit for the year Walldorf, April 30, 2014. Despite being a leading company in terms of technology, REALTECH has over the past year faced the tough reality of not being able to adequately address its performance on the market, and has in consequence commenced the 2014 fiscal year with the most extensive reorganization since the company was founded. Based on the necessary profit-oriented, organizational and HR measures, we intend to restore REALTECH's earning capacity, permanently strengthen this and continue developing the company strategically. In the 2014 fiscal year, REALTECH is focusing in particular on stabilization and the customer/future-oriented alignment of the company. In the implementation phase, the consistent realignment is starting to bear fruit. Over the first three months of the year, for instance, we have succeeded in stabilizing REALTECH USA and have obtained initial profits from the IT services business that we acquired from VMS AG with effect from January 1, 2014. Our customers benefit from REALTECH's systematic analyses combined with the company's consulting and implementation expertise. We are further expanding our service portfolio for IT managers and CIOs, and thus consistently reinforcing our existing strengths. REALTECH AG recorded Group revenue of EUR 8.4 million in the first quarter of 2014, which was 11 % lower than in the previous year (first quarter of 2013: EUR 9.5 million). Consulting revenue alone decreased by EUR 0.9 million to EUR 5.7 million. This development can essentially be attributed to the consequences of a German consulting project being terminated at the turn of the year. Revenues in the software segment decreased by EUR 0.2 million to EUR 2.7 million. Despite the decline in revenues, operating profit (EBIT), at minus EUR 1.0 million, was on a par with the previous year (minus EUR 1.0 million). Net income for the year improved slightly from minus EUR 1.2 million to minus EUR 1.1 million, corresponding to earnings per share of minus EUR 0.21 compared to minus EUR 0.22 in Q1/2013. To meet the challenge of accommodating the highly complex requirements of our customers in our usual manner as well as implementing marketable solutions more quickly and in line with requirements in new customer business, we need to use resources more flexibly and find new ways of accessing the market, the foundations for which we are now laying within the company. We strive to offer our customers an attractive, future-oriented range of solutions, deal with the failures of the past and thus ensure sustained profitability. Based on this, we anticipate being able to stabilize the REALTECH Group's revenue from consulting and software. At the same time, we expect the Group operating profit (EBIT) for the 2014 fiscal year to improve in the range from minus EUR 1.0 million to EUR 0.0 million. REALTECH will be publishing its quarterly report for Q1/2014 on May 8, 2014. Contact person: Manon Fischer Investor Relations REALTECH AG, 69190 Walldorf Tel.: +49.6227.837.500 Fax: +49.6227.837.546 E-mail: [email protected] 30.04.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: REALTECH AG Industriestraße 39c 69190 Walldorf Germany Phone: +49 (0)6227 837-500 Fax: +49 (0)6227 837 9134 E-mail: [email protected] Internet: www.realtech.com ISIN: DE0007008906 WKN: 700890 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------