Leipzig, Nov. 28, 2006 – PC-WARE AG generated revenue growth of 21.8% in the summer quarter, traditionally seen as one of the most challenging seasons of the financial year, thus propelling sales to EUR 152.3 million.
As in the preceding quarters, business performance was driven by all three segments. Within this context, the Software segment registered growth of 24.6%, buoyed in particular by strong demand from abroad and by the fact that this was the first Q2 in which the Scandinavian Ravenholm Group had been included in the consolidated group. At the same time, the Consulting & Services segment grew by 20.5% and the System House segment by 15.7%.
The various regional entities within the Group also performed favourably. Whereas Germany and Italy fell slightly short of the formidable revenue figures posted a year ago, the other enterprises based abroad were all able to achieve substantial sales growth, so much so that foreign sales accounted for 55.4% of total sales revenue (Q2 2005/6: 39.4%). The main contributors to growth were the Czech Republic (+340.7%), the United Kingdom (+186%) and the Benelux region (+56.4%).
Gross profit increased by 28% to EUR 20.9 million, thus outpacing revenue growth. This was attributable on the one hand to the higher proportion of revenue generated through more profitable service and integrated systems business and on the other hand to Microsoft's direct Enterprise Agreements, for which the Company receives a fee rather than recognising the entire transaction as sales revenue. At EUR 16.8 million, the overall volume of these Direct Enterprise Agreements was 11.1% lower than in the second quarter of 2005/6 (EUR 18.9 million). The proportion of higher-margin non-Microsoft products was raised by an encouraging 31.4%.

In conjunction with additional capital expenditure on infrastructure required for future business development, the growth-induced increase in staff costs and higher other operating expense contributed to a slightly underproportional 7.7% increase in EBITDA.
 

Supported by a more stable finance result, EBT rose by 176.8% to EUR 1.12 million.
At EUR 0.68 million, net profit for the period, after minority interests, was significantly higher than the figure posted a year ago.
The dynamic period from October to December is expected to produce a solid progression of business. Taking into consideration the release of new Microsoft products, the Management Board has reaffirmed its revenue forecast of EUR 700 million for the financial year as a whole. EBITDA is expected to reach approx. EUR 15 million.

The full quarterly report can be accessed via www.ir.pc-ware.com.

Contact:
Investor Relations
Dr. Ingmar Ackermann
Phone: +49 (0)341 25 68-148
investor.relations@pc-ware.de