Brokat Technologies Reports Preliminary First Quarter Results; Revises Outlook for the Fiscal Year

Apr 25, 2001, 01:00 ET from Brokat Technologies

    SAN JOSE, Calif., April 25 /PRNewswire/ --
 Brokat Technologies (Nasdaq:   BROA; Neuer Markt: BRJ), a global leader in
 software that enables user-centric business, today announced preliminary
 results for the first quarter ended March 31, 2001 and revised its revenue
 outlook for fiscal year 2001.
     Brokat said that it expects revenues for first quarter 2001 to be
 approximately 42 million Euro. Pro-forma result (EBITDASO, Earnings before
 Tax, Interest, Depreciation and Stock Options) is expected to be approximately
 (30.0) million Euro. These figures are in line with the Company's guidance
 indicated on its February 21, 2001 quarterly conference call that first
 quarter revenue and operating expenses were expected to be flat or below
 fourth quarter levels. However, Brokat expects its gross profit for the first
 quarter 2001 to be approximately 18.5 million Euro, or 44% of revenue.
     Brokat also provided a revised outlook for the fiscal year ending
 December 31 and currently expects revenues to be within the range of 180 to
 190 million Euro.
     "We have recently begun to experience the effects of the worldwide
 economic slowdown affecting our industry and, accordingly, we think it is
 prudent to take a more conservative stance toward our fiscal 2001 forecast,"
 said Stefan Rover, Chief Executive Officer of Brokat AG. "While a reduction in
 visibility and longer sales cycles are currently impacting our near-term
 outlook, we remain confident that our products are ideally suited to the needs
 of our customers and hope to announce some high quality wins in the coming
 months. In addition, we plan to initiate a comprehensive cost reduction
 program intended to allow us to achieve our profitability target of EBITDASO
 break-even in the fourth quarter of this year."
     Brokat is scheduled to report complete financial results for the first
 quarter on May 10, 2001, at which time the Company plans to discuss its
 financial results in more detail during its quarterly conference call.
 
     About Brokat
     Brokat Technologies is a global leader in software that enables
 user-centric business.  Brokat's product families -- multi-channel
 infrastructure software, rules management and personalization technology,
 mobile payment software, and e-finance applications -- are used by over
 3,500 enterprises worldwide including ABN Amro, Allianz, Bank of America, Blue
 Martini Software, Charter One, DaimlerChrysler, DBS Bank, IBM Corporation,
 LBBW, MasterCard International, SE-Banken, Sun Microsystems, Swiss Post
 Office, T-Motion (a subsidiary of Deutsche Telekom), and Toyota. Select global
 partners include Compaq, Hewlett Packard, Intel, IBM, Siemens, and Sun
 Microsystems.  With dual headquarters in San Jose, California and Stuttgart,
 Germany, Brokat employs over 1,400 people in 17 countries.  Information on
 Brokat and its products is available at www.brokat.com.
     This press release contains "forward-looking statements" within the
 meaning of the U.S. Private Securities Litigation Reform Act of 1995,
 including statements relating to future financial results (specifically
 expected revenue, gross margin, and EBITDASO break-even), future "wins" of new
 customers and plans for future cost-reduction measures. These forward-looking
 statements are subject to risks, uncertainties and other factors that could
 cause actual results to differ materially from future results expressed or
 implied by such forward-looking statements. Potential risks and uncertainties
 include, but are not limited to, general economic conditions, competition in
 the wireless and software industries, the company's ability to manage its
 growth effectively, the company's ability to implement its acquisition
 strategy and to integrate acquired companies, fluctuations in quarterly
 operating results, the company's history of operating losses and its cash
 position, and other risks and uncertainties, many of which are beyond the
 control of the company.  Additional information on these and other risks and
 uncertainties related to the forward-looking statements is included in the
 "Risk Factors-Risks Relating to Brokat's Business" section of Brokat's
 registration statement (No. 333-45430) on Form F-4 dated September 8, 2000 and
 its Form 6-K dated November 17, 2000 on file with the U.S. Securities and
 Exchange Commission, and its Form 20-F for the 2000 fiscal year to be filed
 with the SEC. The forward-looking statements in this press release are based
 on management's reasonable beliefs as of the date of this release, and Brokat
 assumes no obligation to update them to reflect subsequent information or
 events. Reported results should not be considered as an indication of future
 performance.
     NOTE:  Brokat, Brokat Technologies and the Brokat Technologies logo are
 trademarks of Brokat AG or its subsidiaries in the United States and other
 countries.
 
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SOURCE Brokat Technologies
    SAN JOSE, Calif., April 25 /PRNewswire/ --
 Brokat Technologies (Nasdaq:   BROA; Neuer Markt: BRJ), a global leader in
 software that enables user-centric business, today announced preliminary
 results for the first quarter ended March 31, 2001 and revised its revenue
 outlook for fiscal year 2001.
     Brokat said that it expects revenues for first quarter 2001 to be
 approximately 42 million Euro. Pro-forma result (EBITDASO, Earnings before
 Tax, Interest, Depreciation and Stock Options) is expected to be approximately
 (30.0) million Euro. These figures are in line with the Company's guidance
 indicated on its February 21, 2001 quarterly conference call that first
 quarter revenue and operating expenses were expected to be flat or below
 fourth quarter levels. However, Brokat expects its gross profit for the first
 quarter 2001 to be approximately 18.5 million Euro, or 44% of revenue.
     Brokat also provided a revised outlook for the fiscal year ending
 December 31 and currently expects revenues to be within the range of 180 to
 190 million Euro.
     "We have recently begun to experience the effects of the worldwide
 economic slowdown affecting our industry and, accordingly, we think it is
 prudent to take a more conservative stance toward our fiscal 2001 forecast,"
 said Stefan Rover, Chief Executive Officer of Brokat AG. "While a reduction in
 visibility and longer sales cycles are currently impacting our near-term
 outlook, we remain confident that our products are ideally suited to the needs
 of our customers and hope to announce some high quality wins in the coming
 months. In addition, we plan to initiate a comprehensive cost reduction
 program intended to allow us to achieve our profitability target of EBITDASO
 break-even in the fourth quarter of this year."
     Brokat is scheduled to report complete financial results for the first
 quarter on May 10, 2001, at which time the Company plans to discuss its
 financial results in more detail during its quarterly conference call.
 
     About Brokat
     Brokat Technologies is a global leader in software that enables
 user-centric business.  Brokat's product families -- multi-channel
 infrastructure software, rules management and personalization technology,
 mobile payment software, and e-finance applications -- are used by over
 3,500 enterprises worldwide including ABN Amro, Allianz, Bank of America, Blue
 Martini Software, Charter One, DaimlerChrysler, DBS Bank, IBM Corporation,
 LBBW, MasterCard International, SE-Banken, Sun Microsystems, Swiss Post
 Office, T-Motion (a subsidiary of Deutsche Telekom), and Toyota. Select global
 partners include Compaq, Hewlett Packard, Intel, IBM, Siemens, and Sun
 Microsystems.  With dual headquarters in San Jose, California and Stuttgart,
 Germany, Brokat employs over 1,400 people in 17 countries.  Information on
 Brokat and its products is available at www.brokat.com.
     This press release contains "forward-looking statements" within the
 meaning of the U.S. Private Securities Litigation Reform Act of 1995,
 including statements relating to future financial results (specifically
 expected revenue, gross margin, and EBITDASO break-even), future "wins" of new
 customers and plans for future cost-reduction measures. These forward-looking
 statements are subject to risks, uncertainties and other factors that could
 cause actual results to differ materially from future results expressed or
 implied by such forward-looking statements. Potential risks and uncertainties
 include, but are not limited to, general economic conditions, competition in
 the wireless and software industries, the company's ability to manage its
 growth effectively, the company's ability to implement its acquisition
 strategy and to integrate acquired companies, fluctuations in quarterly
 operating results, the company's history of operating losses and its cash
 position, and other risks and uncertainties, many of which are beyond the
 control of the company.  Additional information on these and other risks and
 uncertainties related to the forward-looking statements is included in the
 "Risk Factors-Risks Relating to Brokat's Business" section of Brokat's
 registration statement (No. 333-45430) on Form F-4 dated September 8, 2000 and
 its Form 6-K dated November 17, 2000 on file with the U.S. Securities and
 Exchange Commission, and its Form 20-F for the 2000 fiscal year to be filed
 with the SEC. The forward-looking statements in this press release are based
 on management's reasonable beliefs as of the date of this release, and Brokat
 assumes no obligation to update them to reflect subsequent information or
 events. Reported results should not be considered as an indication of future
 performance.
     NOTE:  Brokat, Brokat Technologies and the Brokat Technologies logo are
 trademarks of Brokat AG or its subsidiaries in the United States and other
 countries.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X16942423
 
 SOURCE  Brokat Technologies