Corporate news

MAGIX publishes preliminary 6-month results

Corporate News

* Revenue increased to EUR 17.3
* EBIT of EUR 1.0 million
* Operative cash flow almost double at EUR 3.9 million

Berlin, April 30, 2009 – Today MAGIX AG, listed on the Prime Standard (ISIN DE0007220782), presents its preliminary, unaudited 6-month figures for the fiscal year 2008/2009.

In the period from October 2008 to March 2009 MAGIX generated revenues of EUR 17.3 million, which corresponds to an increase of 6% in comparison to the same period of last year. In the second quarter alone revenues rose by 15% to EUR 8.1 million. This was attributed mainly to the special editions of MAGIX software that were accepted well by the market, in combination with the strongly growing online business, which now accounts for 43% of total revenues.

In the current financial year products were also marketed that combine MAGIX software with hardware components. As the included hardware is acquired from third party suppliers, however, this resulted in a negative effect on the gross margin, which dropped from 87% to currently 80% in the first six months of the fiscal year. With regard to the product publications in the second six months, however, the management board expects higher margins again. Thus, a gross margin of 83% in the second quarter already indicated a turnaround. Moreover, the publications planned for the second six months are increasingly targeted at professional and semi-professional users and tend to have higher margins.

At EUR 1.0 million the earnings before interest and tax (EBIT) remained below the previous year's level of EUR 1.7 million, however, MAGIX still was successful in achieving a positive EBIT in the second quarter: EUR 0.2 million compared to -0.2 million in the previous year. While the operative costs in the sales and administration areas mostly remained constant, MAGIX continued to invest in research and development in Germany. In operative terms the expenditures in this area were 14% higher in the first and second quarter compared to the previous year.

The operative cash flow almost doubled to EUR 3.9 million compared to the previous year's value of EUR 2.0 million. Financially, MAGIX's position remains excellent with liquid assets amounting to EUR 24.8 million, a balance sheet total of EUR 52.1 million and an equity ratio of 81%.

The six-month report will be published on May 29, 2009.