Corporate news

Revenue and EBIT in 2008/2009 fiscal year are clearly up from previous year according to preliminary unaudited figures

Ad-hoc notice

Berlin, 9 November 2009 - Prime Standard-listed MAGIX AG from Berlin (ISIN DE0007220782) has significantly raised its revenue as well as results before interest and taxes (EBIT) for the 2008/2009 fiscal year, which ended on 30 September, 2009, according to preliminary unaudited figures. As in the previous year, the fourth quarter has decisively contributed to the increase.

Between July and September 2009, MAGIX increased the group revenue in comparison to the previous year by 8% to EUR 10.6 million. Following a strong third quarter in retail, the quarterly revenue was only slightly below the previous year's levels at EUR 6.7 million (-2%) The OEM sector suffered more concretely from the strained economic situation and brought in a revenue of EUR 0.2 million (-20%) during the fourth quarter. The portal sector has had very clear gains, bringing in revenues of EUR 3.7 million, which correspond to a 32% increase.

Due to the re-introduced half-yearly releases as well new products that were well received on the market, the MAGIX Group annual revenue rose from EUR 32.1 million to EUR 34.8 million (+8%). As in previous years, the retail business brought in the lion's share of the revenue, and was able to show a slight increase, totaling EUR 20.0 million (EUR +0.1 million). However, the Consumer and Professional sectors developed very differently. While the Consumer sector continued increasing in revenue by 4%, totaling EUR 19.2 million, the Professional sector dropped by 45% to EUR 0.8 million.

The latter resulted on the one hand from the fact that the new versions of the professional audio software infused revenue only in the fourth quarter of the fiscal year, after the programs netted comparatively low revenues due to being at the end of their two-year publication cycle. On the other hand, like the OEM sector which experienced a drop of 24% to EUR 1.1 million, the Professional sector also suffered from increasing reluctance of business clients.

Notwithstanding this circumstance, the portal revenues grew by a total of 28% to EUR 13.7 million, with the growth spread around all regions. In particular, losses in US retail sales were compensated for via the portal sector, whose revenues for this region grew by 47% to EUR 1.6 million in 2008/2009.

Due to the positive revenue development in light of just slightly rising operative costs, MAGIX raised the EBIT in the finished fiscal year by 45% to EUR 3.0 million. In the fourth quarter alone, the group generated an EBIT of EUR 2.4 million, which beat the good result from the previous year's fourth quarter, equaling EUR 2.0 million. The operative group cash flow clearly rose from EUR 2.7 million in the previous year to EUR 5.9 million in 2008/2009.

Thorough information concerning preliminary, unaudited figures from the 2008/2009 fiscal year will be released today, Monday, 9 November 2009 in an online presentation hosted by the company's board members at www.magix.com. The company will publish its annual report on 29 January, 2010.