ifa systems with strong first half 2019

• Successful business performance continued in 1st half of 2019
• License agreements for a total of EUR 2.5 million for the worldwide and non-exclusive use of Inoveon's database for research purposes
• Due to special effects, sales rise to EUR 6.1 million, EBIT reaches EUR 2.5 million
• Forecast for 2019 as a whole raised: Revenues EUR 9.3 to 9.7 million and EBITDA EUR 3.4 to 4.2 million

ifa systems AG, a listed specialist for health IT applications in ophthalmology, continued its successful business development in the first half of 2019 and increased sales to EUR 6.1 million (previous year EUR 3.1 million) due to license agreements of the American subsidiary Inoveon Corp. Adjusted for this effect, sales would have reached EUR 3.6 million. In addition, ifa also benefited from the introduction of telematics infrastructure in Germany in the first half of the year. The increase in sales also had a positive effect on profitability. The operating result (EBIT) rose to EUR 2.5 million, after a black zero (EUR 41 thousand) had been achieved at this point in the previous year as planned.

"The orders for our subsidiary Inoveon Corp. for the license agreements to use its database are a great success," says Jörg Polis, Chairman of the Management Board of ifa systems AG. "We were always convinced that the database contents could be used and exploited economically. With the licensing we have now found a suitable way".

The improvement in operating business was particularly evident in the area of basic licenses and runtime licenses. Basic licenses, which represent revenues with new customers or licenses for additional products from existing customers, rose to EUR 684 thousand (previous year: EUR 352 thousand) in the first half of the year, also due to the introduction of telematics infrastructure. Runtime licenses, which customers pay for the duration they use the software, also developed positively. Their share of revenues reached EUR 1.9 million, compared to EUR 1.7 million in the previous year (+ 14.2 percent).

The positive business development also had an impact on the cash flow. As of June 30, 2019, cash flow from operating activities improved by EUR 2.0 million year-on-year to EUR 1.7 million (previous year: EUR -323 thousand). After a negative free cash flow of EUR -739 thousand last year, it now amounted to EUR 1.5 million for the first half of 2019. From this result financial liabilities totalling EUR 3.0 million were repaid. Cash and cash equivalents at the end of the period amounted to EUR 2.2 million (previous year as of June 30: EUR 3.7 million).

Outlook

Based on the half-year figures, the Management Board has redefined its targets for the year as a whole. For the 2019 financial year, the ifa Group now expects revenues of EUR 9.3 to 9.7 million, corresponding to the originally planned EUR 6.8 to 7.2 million from current business and the EUR 2.5 million from license agreements that cannot be planned. Neither further license agreements, which would always represent a special effect, nor possible potentials from the cooperation with NEXUS AG are considered in this planning. These will only become more concrete in the coming months.

In the medium term the prospects are also promising, as the digitization of the health care system in Germany still has a lot of potential. It can help to significantly dampen rising healthcare costs in an ageing society. The telematics infrastructure is an important step to tap this potential, and the electronic patient file is an integral part of the roadmap. Here, the ifa Group is one of the leading providers in the field of ophthalmology. And as an integration platform, it offers the possibility of connecting almost any device and any software used in practices and clinics worldwide, thus ensuring a consistent electronic workflow. The Management Board therefore assumes that the accelerated efforts in the German healthcare system will have a positive impact on the further development of the Group.

The higher revenues naturally also have a positive impact on profitability, which is why this guidance for the current financial year has also been raised. The Management Board now expects EBITDA of between EUR 3.4 million and EUR 4.2 million for the full year 2019 (previous year: EUR 1.3 million). Originally, the operating result (EBIT) based on current business was planned between EUR 0.2 and EUR 0.5 million.

Detailed information can be found in the complete Interim Report 2019. It can be downloaded from the Internet at -systems.de, Investor Relations.

Contact for information:

Jörg Polis (Chairman / CEO)
phone
mobile
email

Key figures as of June 30, 2019
ifa systems Group, acc. to IFRS