DGAP-News: asknet publishes Annual Report for 2016

DGAP-News: asknet AG / Key word(s): Final Results
asknet publishes Annual Report for 2016

28.04.2017 / 10:00
The issuer is solely responsible for the content of this announcement.

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asknet publishes Annual Report for 2016

- Consolidated earnings strongly influenced by Norway issue; compensation to
be pushed ahead in 2017

- One-time effect due to lack of large individual deals in asknet's Academics
Business Unit; realization of these transactions already being implemented for
2017

- Good new customer trend in asknet's eCommerce Solutions Business Unit

- Company continues change process at detail level

- Outlook: Notably improved operating result

Karlsruhe, April 28, 2017 -  asknet AG, a supplier of international e-business
solutions, has published the figures for the financial year 2016. Gross
profit, which is a key performance indicator of asknet Group, came to 8.92
million euros at Group level, down approx. 14 percent on the previous year's
10.39 million euros. With sales revenues down by roughly 6 percent to 68.72
million euros (previous year: 73.32 million euros), the gross profit margin
(gross profits as a percentage of sales revenues) declined from 14.2 percent
to 13.0 percent. Transaction revenues fell by approx. 11 percent to 73.96
million euros (previous year: 83.20 million euros).

In asknet's Academics Business Unit, the business trend was adversely affected
by the fact that the business unit was unable to repeat the large-scale
transactions, which usually made a major contribution to the company's results
in 2016. It is expected, however, that these transactions will be implemented
successively in 2017, leading to a stabilization of sales revenues and gross
profits at a higher level. The business unit's sales revenues declined by 24
percent to 19.96 million euros and gross profits dropped by 32 percent to 2.91
million euros. In asknet's Digital Goods Business Unit, strong business with
existing customers and the launch of e-commerce solutions for new customers
led to a 5 percent increase in sales revenues to 44.91 million euros. Gross
profits climbed to 5.30 million euros. Business in asknet's Physical Goods
Business Unit declined moderately, with sales revenues falling at a low level
from 4.08 million euros to 3.86 million euros. Gross profits dropped to 0.71
million euros. As of 1 November 2016, the Digital Goods unit and the Physical
Goods unit were merged into asknet's eCommerce Solutions Business Unit, which
was newly set up in the context of the organizational reform.

asknet Group's earnings before interest and taxes (EBIT) amounted to -1.65
million euros in 2016 (previous year: 0.09 million euros), while earnings
before taxes (EBT) came in at -1.83 million euros (previous year: 0.09 million
euros). Consolidated earnings after taxes stood at -2.50 million euros
(previous year: 0.08 million euros). Adjusted for all extraordinary expenses
incurred to address the Norway issue, incl. consulting and restructuring
expenses, EBT amounted to -1.09 million euros. Adjusted consolidated earnings
after taxes (EAT) came to -1.10 million euros.

Good progress was made in the second half of 2016 with regard to the tax issue
in Norway. A first advance payment was made to reduce the interest burden and
part of the provision was released as of the end of the year, as the
retrospective tax payment will probably be somewhat lower than previously
projected. Moreover, the company continues to examine the possibility of
enforcing liability claims in order to further minimize the damage. As this
issue was addressed, the internal risk processes were revised from scratch and
a new risk management system was installed.

The company also implemented a comprehensive change process in the fiscal
year, whose measures will lead to significant annual savings as a result of
increased operational and structural efficiency. These savings were felt
already in the second half of the year and more than offset the extraordinary
expenses associated with the program. A material change in this context was
the organizational reform implemented as of 1 November, as part of which
important back-office departments were implemented into the business units,
giving the latter full customer and product responsibility along the value
chain from sales to technical implementation to customer service. In addition,
development and innovation tasks have been pooled in the Technical Product
Management Department, which will push ahead with the identification and
development of innovative products and processes independently of the
operational business.

Says Tobias Kaulfuss, CEO of asknet AG: "The fiscal year 2016 was marked by
great contrasts. But against the background of the setbacks experienced in the
course of the year, we were all the more determined to implement fundamental
changes. This strategy is vindicated primarily by the sales successes of
asknet's eCommerce Solutions Business Unit, which make us optimistic about the
future. A total of 18 new customers make 2016 one of the most successful sales
years in our history of over 20 years. There was great interest in our
solutions and services especially in Asia."

The Executive Board expects the Group's gross profits to pick up in the fiscal
year 2017. Given that extraordinary expenses will once again be incurred in
the context of the change process the current fiscal year and investments in
development will be increased, the Executive Board assumes that the operating
result will be much better than in 2016 but will still be negative. In the
medium term, however, earnings before taxes are expected to reach approx. 10
percent of gross profits on a sustained basis.

                                                      2016                2015
Sales revenues                         68.72 million euros 73.32 million euros
Gross profits                           8.92 million euros 10.39 million euros
Gross profit margin (gross profit in                13.0 %              14.2 %
percent of sales revenues)
EBT                                    -1.83 million euros  0.09 million euros
Result for the year                    -2.50 million euros  0.08 million euros

 

The full Annual Report for 2016 is available on the company's website at
www.asknet.com.

About asknet

asknet Group is an innovative supplier of e-business technologies and
solutions for the global distribution and management of digital and physical
goods. Founded in 1995 as a spin-off of the Karlsruhe Institute of Technology
(KIT), the company is a pioneer of modern e-commerce with over 20 years'
experience in the field.

asknet's eCommerce Solutions Business Unit (previously Digital Goods and
Physical Goods Business Unit) enables international manufacturers to
successfully market their products in over 190 countries. The core product,
asknet eCommerce Suite, covers the complete sales process and is suitable for
manufacturers of both digital and physical goods. In addition, the company
offers stand-alone services and solutions along the value chain. asknet's
Academics Business Unit assists customers from the research and education
sector in purchasing and managing software and hardware. Thanks to its close
relations with over 80% of Germany's universities and research institutions,
asknet is intimately familiar with their needs and requirements and can offer
them specific solutions. For more information, visit www.asknet.com.

Press Contact
asknet AG
Madeleine Clark
+49 (0)721 96458-6116
investorrelations@asknet.com

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28.04.2017 Dissemination of a Corporate News, transmitted by DGAP - a service
of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company:  asknet AG
          Vincenz-Priessnitz-Str. 3
          76131 Karlsruhe
          Germany
Phone:    +49 (0)721 / 964 58-0
Fax:      +49 (0)721 / 964 58-99
E-mail:   info@asknet.de
Internet: www.asknet.de
ISIN:     DE0005173306
WKN:      517330
Listed:   Regulated Unofficial Market in Berlin, Dusseldorf, Munich,
          Stuttgart; Open Market (Basic Board) in Frankfurt


 
End of News DGAP News Service


568673  28.04.2017 

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