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proALPHA Software Corporation

20 Trafalgar Square

Suite 403

Nashua, NH 03063

Tel. 001 603-881-3635

Fax 001 603-886-4350

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proALPHA Continues to Grow

Rising Sales and Positive Result in Spite of Economic Crisisfair

Sep 23, 2009

During the annual shareholder’s meeting on September 22, 2009, proALPHA Software AG presented the results of the past fiscal year. The ERP business focussing on mid-sized industrial and commercial enterprises considerably increased sales and achieved a positive result in spite of the recession and economic crisis. The group revenue increased by 5.3 % to 48.1 Mio. Euro. The EBIT of 7.1 Mio. Euro is slightly below the pre-year level (7.6 Mio. Euro). Thus proALPHA continues the uninterrupted series of 14 years of success.

Especially services drive the growth of the ERP provider. On this sector turnover increased by 16.5% to 18.9 Mio. Euro. This field includes consulting, project-related development and services of the proALPHA Academy.

Again, personnel expenses have the greatest share in operative costs and increased by 2.5 Mio Euro to 26.5 Mio Euro. This is caused by an increase of staff by almost 10 % to an average of 442 employees. In this context the expenses for recruiting and personnel training increased, too. "proALPHA is aware of the fact, that high customer satisfaction and business success are based on well-trained and highly motivated personnel. We feel responsible for investing in our staff and therefore we will continue to be successful in the future." says CEO Leo Ernst to explain investments in the human capital of the group.

In fact the recession could hardly impact the balance of the past fiscal year. It even supported the increase in turnover on the services sector. According to proALPHA CFO Jürgen Brand the reasons are as follows: "Due to the fact that proALPHA is not focussed on a special branch but on a broad customer base, economic problems in individual sectors will not impair our success. In addition to that, many businesses use their free capacities during times of crisis to look for a ERP system. Customers send their employees to the proALPHA Academy for further training. And finally, many customer realized that economically difficult times offer the possibility to test and optimize their business processes. This positively influenced our services sector."

While the intertrade organisation BITKOM assumes that the German information technology and communication market will be subject to further economic stagnation, proALPHA expects a medium-term positive business development and increasing sales. In this context the company will of course keep track of its major aim: profitability.

The proALPHA group at a glance

Note:proALPHA Software AG has a deviating financial year ending on March 31.

Revenue (in million euros)48.145.741.0
EBIT (in million euros)
Cash flow (in million euros)
Investment (in million euros)
Balance sheet total (in million euros)45.744.537.1
Equity ratio38.4 %37.6 %34.5 %
Emplyees Ø442403356

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