Walldorf, November 22, 2001 – REALTECH AG, the leading provider of technology consultancy, software solutions and hosting of complex e-business environments is convinced it is well positioned for the year 2002. For the forthcoming year the REALTECH AG Board plans to generate consolidated sales of around 70 million euros. Compared with the 55.5 million euros predicted for the current fiscal year, this represents an increase of around 26 percent. On this basis, sales will grow in the year 2001 by 23 percent compared with the year 2000 (42.5 million euros). This means that the sales target established at the start of 2001 will only be narrowly achieved. One of the main reasons is the delay in launching software products on the market. REALTECH plans to achieve the envisaged increase in sales solely on the basis of organic growth. In 2001 and 2002, as in the year 2000, the company will continue to generate more than 50 percent of its turnover outside of Germany.
The key element of REALTECH’s software operations is the company’s own system management solution theGuard! which provides control and monitoring support for heterogeneous IT system landscapes. The Board anticipates growth in sales of the company’s software products of over 50 percent - worth 9.1 million euros - in 2002. This optimistic prediction is based on the successful expansion in the company’s research and development activities, its sales operations and high and sustained levels of demand for system management solutions.
REALTECH expects its technology consultancy arm to notch up sales of almost 61 million euros – a rise of 25 percent compared with 2001. The main focus will be on consultancy business for e-business solutions based on mySAP.com.
REALTECH continues to assume that it will succeed in reporting planned earnings before interest and tax of 1.6 million euros in the current fiscal year. The Board then plans to increase EBIT for 2002 to 4.3 million euros. This confident prediction is based on further expansion of the high-margin software segment and continued optimization of operating costs. Changed US GAAP accounting rules now also mean that the company no longer needs to write-off the goodwill, which will automatically lead to an improvement in its results of 1.1 million euros.
