TXT nine months' sales surge 16.2%, declares 1-on-1 bonus

Highlights:

- Consolidated Revenues: € 39.6 million (+16.2%), 54% from outside Italy.

- EBITDA: € 4.8 million (+9.2% compared to September 30, 2012).

- Net profit: € 2.9 million (€ 3.0 million as of September 30, 2012, net of nonrecurring capital gain).

- Net Financial Position: € 6.3 million (€ 6.0 million as of December 31, 2012).

In the first nine months of 2013 the key business objectives for TXT have been the Luxury and Fashion markets in Europe and in North America, where TXT offers its proprietary software TXT Perform for “end to end” planning of large, international Luxury and Retail customers.

Revenues grew by 16.2%, from € 34.1 million to € 39.6 million. Sales of licences and maintenance totalled € 10.2 million (26% as a percentage of revenues), up +31.9% compared to September 30, 2012.

Both business areas made a positive contribution to growth in revenues, with TXT Perform and TXT Next increasing +25.4% (60% of group revenues) and +4.4% (40% of group revenues), respectively. International revenues rose from € 17.5 to € 21.5 million, up +22.4% (54% of total sales).

EBITDA grew by 9.2%, from € 4.4 million to € 4.8 million (12.0% of revenues). In the first nine months of 2013, several new initiatives in support of planned growth increased Research and Development costs (+23.4%) and Commercial costs (+15.9%). All research  and development costs were expensed both in 2013 and in 2012.

Net Income amounted to € 2.9 million (7.3% of revenues), compared to € 3.6 million in the first nine months of 2012, which included € 0.6 million extraordinary capital gain on the sale of KIT Digital shares, following the divestiture of Polymedia. Lower tax charges partly balanced higher amortization costs and financial charges following the Maple Lake acquisition.

Net Financial Position has risen from € 6.0 million positive as of 31 December 2012 to € 6.3 million as of September 30, 2013, due to good cash generation and net of payment of dividends of € 2.1 million.

At both dates Net Financial Position does not include € 2.8 million provision for maximum Earn-out payable to Maple Lake sellers. No additional payment is expected as the contractual target for exceptional synergies are not verified to date, nor expected. Final acquisition price is reduced from € 13.1 million to € 10.1 million and Balance Sheet and Net Financial Position as of December 31, 2012 have been restated to reflect the final acquisition price.

Shareholders’ Equity as of September 30, 2013 amounted to € 26.5 million, compared to € 26.0 million as of December 31, 2012 mainly due to net income of the first nine months (€2.9 million), net of payment of dividends (€ 2.1 million), purchase of treasury shares (€ 0.8 million) and issue of shares for stock option and stock grant plans.

In the first nine months of 2013, TXT Perform launched on the market new “TXT Mobile” and “TXT on Cloud” applications and new releases of TXT Perform.

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