Corporate news

EBIT in first quarter 2009/2010 clearly higher than previous year

Ad-hoc notice

Berlin, 28 January 2010 – Prime Standard-listed MAGIX AG from Berlin (ISIN DE0007220782) significantly has raised its earnings before interest and taxes (EBIT) for the first quarter of the 2009/2010 fiscal year by 48%, according to preliminary, unaudited figures. Against this background the Board expects further improvement of the results for the fiscal year ending in September 2010, as the EBIT already rose by 46% to EUR 3.1 million in 2008/2009.

From October to December 2009 MAGIX increased company revenues by 4% to EUR 9.5 million compared to last year's quarter. The increase of revenues was accompanied by a considerably higher gross margin of 86% or EUR 8.2 million (previous year: 78% or EUR 7.2 million). On the one hand this was triggered by the increased sales of high-margin professional software, and on the other by reduced sales of product packages with weaker margins due to included third-party hardware components.

Despite risen operative costs the group generated EBIT of EUR 1.2 million in the first quarter of 2009/2010, corresponding to growth of 48% compared to the previous year. At EUR 2.9 million, the operative cash flow was considerably higher than the previous year's value of EUR 1.3 million.

Detailed information concerning the preliminary, unaudited quarterly numbers will be released by MAGIX on Friday, 29 January 2010 at an online presentation hosted by the company's Board where the key issues of the 2008/2009 annual report will be presented, which also will be published the same day. The company will publish its three-month report on 26 February 2010.