Corporate news

MAGIX reports EBIT in excess of two million EUR for Q4

Corporate News

- Annual revenues have almost reached the previous year's level after a quarter of strong turnovers 
- EBIT expectation for the expired financial year fully met
- Operative cashflow currently EUR 2.7 million


Berlin, November 11, 2008 - This Wednesday, MAGIX AG (ISIN DE0007220782) presents the preliminary numbers for the 4th quarter and the 2007/2008 financial year.


In the period from July to September 2008 MAGIX generated revenues of almost EUR 10 million, which corresponds to an increase of 20% in comparison to the same period of last year. This was mainly attributed to the change to the product release cycle. Due to the strong 4th quarter it was also possible to compensate the comparatively low revenues in quarters 2 and 3, so at EUR 32.2 million revenues now are only 1% below last year's level.


While the annual revenues in retail, characterized by the weak overall market situation in Europe and the US, had dropped by 7% or 20% respectively, a rise of 26% was generated by the new professional products. The company's fast-growing Portal business rose by 10% in the last financial year and now accounts for one third of total revenues. The OEM business remains constant with revenues of EUR 1.5 million.


In the 4th quarter the gross margin amounted to 89.7% of revenues. The increase by 3.5 percentage points compared to the same quarter of the previous year results from the higher share in professional products. Looking at the entire year, however, a tendancy towards a slight decrease can be noted. This is due to an increase in sold product bundles that, in addition to MAGIX's software, also include hardware purchased from third-parties.


In the 4th quarter MAGIX generated EBIT of EUR 2 million. The 4th quarter was largely responsible for exceeding the results target of the past financial year by 5% with EUR 2.1 million. Reasons for the drop compared to the previous year can be found in the downturn of the consumption climate and the risen costs of sales and write-offs. It was possible to increase the operative cashflow considerably from EUR 1.6 million to EUR 2.7 million.


In light of the good development of the business in the 4th quarter and the sound financial structure of the company MAGIX's outlook for the upcoming financial year is positive despite the deteriorating economic situation.