Corporate news

Preliminary nine-month figures of the 2008/2009 financial year

Corporate News

• Revenues rise by 9% to EUR 24.2 million
• EBIT increase to EUR 0.6 million
• Operative cash flow continues to rise to EUR 5.0 million

Berlin, July 31, 2009 - This Friday, MAGIX AG, listed on the Prime Standard (ISIN DE0007220782), presented the preliminary and unaudited figures of the group following nine months into the current financial year.

With an increase by 16% to EUR 6.9 million in the third quarter, revenues after nine months superceded the previous year's value by 9% at EUR 24.2 million. MAGIX profited from the continuously growing Portal business, which in the meantime generated 42% of total revenues with EUR 10.2 million (+29%). In the third quarter business also increased considerably in the consumer sector. Resulting from new products and semi-annual releases, revenues in this sector rose to EUR 3.6 million in the third quarter (+38%), or to EUR 13.0 million (+8%) after nine months, respectively.

A substantial increase in revenues in the third quarter was accompanied by a rise in gross margin from 78% to 79%. Viewed over a period of nine months, however, strong sales of product packages that include hardware procured from third-party suppliers in addition to software have reduced the gross margin. It dropped from from 84% in the previous year to 80%. In this regard a lower gross margin also is expected for the entire year, whereas higher margins than in the third quarter are expected again for fourth quarter due to scheduled releases targeted increasingly towards professional and semi-professional users.

With EUR -0.4 million, earnings before interest and taxes (EBIT) in the quarter from April to June, which is difficult for MAGIX by tradition, were considerably higher than the previous year's figures of EUR -1.6 million. Consequently, the EBIT improved to EUR 0.6 million after nine months of the current financial year despite moderately increased operative costs and depreciations (compared to EUR 0.1 million in the previous year).

The operative cash flow also rose significantly to EUR 5.0 million compared to the previous year's value of EUR 2.7 million. In total, even after the share buybacks successfully carried out during the current financial year, MAGIX's position remains excellent with liquid assets amounting to EUR 25.0 million, a balance sheet total of EUR 51.9 million and an equity ratio of 81% as of June 30, 2009.

Looking towards the fourth quarter the company expects to reach at least the revenues of the same period of the previous year as well as positive EBIT, which will allow MAGIX to conclude the financial year successfully, despite the economic situation.

The company will publish the nine-month report on August 28, 2009.