Software-licence revenue rose 6.9 percent in 2007 to €29.0 million from €27.1 million, while services revenue increased 14.9 percent to €14.5 million from €12.6 million. Total revenue fell to €88.6 million from €96.6 million as the hardware business was reduced as planned. Excluding hardware, revenue increased 0.8 percent year on year.
Beta Systems attributes the result to its focus on higher-margin software licences and services, an optimised cost structure and consistent implementation of sales measures.
Financial figures for fiscal 2007:
Operating income, or EBIT, rose to €5.8 million from a loss of €15.6 million in 2006.
Licence revenue increased 6.9 percent to €29.0 million from €27.1 million.
Services revenue improved 14.9 percent to €14.5 million from €12.6 million.
Total revenue declined as planned to €88.6 million from €96.6 million.
“We clearly achieved our targets in 2007, creating a good basis for even more successful growth and further improvement in profitability over the next few years,” says Kamyar Niroumand, chief executive of Beta Systems Software AG.
Beta Systems is celebrating its twenty-fifth anniversary in 2008 under the slogan “25 Years of High Tech and Innovation”. Niroumand describes the company’s approach: “Remaining successful as a software company for a quarter of a century cannot be taken for granted. Innovation and quality were the formula used by our founders. We still see it the same way after twenty-five years and consistently align our product strategy with customers’ IT requirements. That is the whole secret.”
For fiscal 2008, the board expects slight revenue growth, a high single-digit EBIT margin and a double-digit EBITDA margin, subject to all three divisions operating profitably. Beta Systems expects to sustain the improvement by concentrating on software licences and services, expanding customer relationships particularly in financial services and industry, growing its global partner business, and continuing its Beta 4Agility product and sales strategy.
