ifa systems AG: ifa systems with stable business in the first half of the year

Frechen (pta005/27.07.2020/08:00 UTC+2) - Revenues, EBITDA margin and EBIT at comparable prior-year level
- Recurring revenues exceed the EUR 2 million mark for the first time
- Strong cash flow as a basis for investment in future growth

ifa systems AG, a listed specialist for health IT applications in ophthalmology, recorded an almost stable business development despite the corona crisis in the first half of 2020. Revenues reached Eur 3.4 million and were thus almost at the same level as the previous year (Eur 3.5 million), adjusted for the special effect of database licensing. The EBITDA margin reached 19.5 percent and the comparable operating result (EBIT) was Eur 114 thousand (previous year Eur 114 thousand). The operating cash flow amounted to Eur 0.9 million in the first half of the year, while the free cash flow was Eur 0.6 million.

"ifa has come through the first months of the Corona crisis in good shape," says Jörg Polis, CEO of ifa systems AG. "Digitalization in the health care system is progressing dynamically and is proving to be largely independent of economic cycles.

ifa's robust business model was particularly evident under challenging conditions in the high proportion of recurring revenues. The runtime licenses that customers pay for the duration of their use of the software exceeded the 2 million Euro mark for the first time and now represent 58.9 percent of total sales. In contrast, new business and the resulting basic licenses recorded a slight decline. This was due to the postponement of agreed projects in non-European countries, which could not yet be completed due to the local occurrence of infections. However, this was more than compensated for by higher sales of hardware and third-party software, as customers increasingly made up for investments that had been planned for longer during the crisis.

The positive business development again had an impact on the cash flow statement. At mid-2020, the cash flow from operating activities reached Eur 914 thousand; the previous year's figure was Eur 1.7 million due to database licensing. Free cash flow reached Eur 598 thousand after Eur 1.5 million in the previous year. On this basis, a further Eur 0.5 million of financial liabilities were reduced. Cash and cash equivalents at the end of the period amounted to Eur 3.6 million and were thus significantly higher than the previous year's figure of Eur 2.2 million.

Outlook
"At the time of publication of our Annual Report 2019, we were unable to provide guidance for the 2020 financial year. Too uncertain were the effects that the restrictions resulting from the corona pandemic would have on the course of business. After the first half of 2020, we know that ifa systems AG has successfully mastered the associated challenges during this period and has achieved an almost stable development in its ongoing business compared to the previous year," says Polis. On the basis of the half-year figures and the project pipeline, the Management Board now expects sales in the 2020 financial year of between Eur 6.7 and 7.2 million. This forecast is subject to the provision that committed projects in non-European countries can still be successfully completed in the current financial year. A further follow-up licensing of Inoveon's database will also contribute to the successful development in the second half of the year. However, the order with a volume of Eur 0.2 million, which was placed a few days ago, will not have a significant impact on the targets for the full year.

Profitability has also developed well so far. On the basis of expected sales, the Management Board expects an operating result (EBIT) between Eur 0.2 and 0.5 million. By achieving these targets, ifa would demonstrate the stability of its business model even in difficult times. The company then intends to return to its growth path.

In technological terms, ifa has now developed into a platform provider that, in addition to its own software products - essentially the electronic patient record - also incorporates and integrates hardware and software from other providers. The introduction of the telematics infrastructure creates the conditions for continuously expanding the range of products and modules available to customers in the future, in line with the roadmap of the relevant government agencies. "We assume that the trends in medical technology in general and the accelerated efforts towards digitalization in the German healthcare system will have a positive influence on the further development of the Group," says Polis.

Dates
AGM September 25, 2020

Disclaimer
Statements in this Corporate News that relate to future developments are based on our careful assessment of future events. The actual results of the company can deviate considerably from the planned results, as they depend on a variety of market and economic factors, some of which are beyond the company's control.

Download
Detailed information can be found in the full interim report 2020. It is available in German only on the Internet at https://www.ifasystems.de/ueber-ifa/investor-relations/finanzpublikationen/.

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Emitter:	ifa systems AG Augustinusstraße 11 b 50226 Frechen Germany
Contact Person:	Thessa Roderig
Phone:	+49 171 3108298
E-Mail:	thessa.roderig@ifasystems.de
ISIN(s):	DE0007830788 (Share)
Stock Exchange(s):	Free Market in Berlin, Dusseldorf, Frankfurt (Basic Board), Hamburg, Munich, Stuttgart, Tradegate