News - cyan AG: Significant increase in earnings in H1 2020 despite COVID-19 pandemic15/10/2020
DGAP-News: cyan AG / Key word(s): Half Year Results
cyan AG: Significant increase in earnings in H1 2020 despite COVID-19 pandemic
Munich, October 15, 2020 - cyan AG generated total consolidated earnings of EUR 19.2 million in the first half of 2020, compared to EUR 7.9 million in the same period of 2019, representing growth of 142 percent. EBITDA in the first half of 2020 amounted to EUR 2.2 million, compared with EUR -1.0 million in the previous year, and includes EUR 4.5 million in value adjustments due to a write-down of receivables from Wirecard Technologies GmbH, which filed for insolvency in July 2020.
a Consisting of sales revenues EUR 16.9 million plus other revenues EUR 0.5 million, income from reversal of impairment losses EUR 0.3 million and changes in inventories EUR 1.4 million.
b Including extraordinary write-down of the contract asset/receivable in the course of the Wirecard insolvency
c Calculated as EBITDA or EBIT from sales revenue
d Consisting of leasing liabilities EUR 4.8 million less cash on hand EUR 3.8 million
e Corresponds to leads of the internal sales cycle phases: NDA, Proof of Concept, Request for Proposal/Quota, Close to Signing
f Existing contractual relationship where the technical integration has already been started/implemented
Michael Sieghart, CFO of cyan AG: "Fortunately, we were able to significantly increase both sales and EBITDA compared to the previous year, despite the lockdown and the crisis-related headwind. The balance sheet scandal at Wirecard also took us by complete surprise. Although the insolvency of our contractual partner Wirecard Technologies GmbH did only take place in July, we have already written off the receivable almost in full in the first half of 2020 and have registered it with the liquidator".
The most important project of cyan remains the product launch at Orange in France, which will still be implemented in the second half of the year. The go-live of the cybersecurity solution is planned in addition to the child protection product, first in the B2B and later in the B2C segment. The technical implementation has also been started at Orange Slovakia. All customer groups are included from the very beginning. Due to the significantly less complex network environment, we expect faster implementation than in France. Another important milestone was reached in April 2020 with the upload of the "CySec" app from Aon in the Google Play Store and Apple App Store. The joint project with Aon has thus also been successfully implemented technically. Aon will intensively promote the joint product in Europe still in the fourth quarter of 2020.
At the end of the first half of the year, cyan also succeeded in concluding a significant contract for 83 million end customer licenses with Virgin Mobile. Under this contract, cyan will provide the complete technology for operating an MVNO, including security services. The contract covers Mexico, Colombia and Chile and has a term of five years. Large portions of these license revenues were already recognized in the second quarter of 2020.
A contract with MobiFone (Vietnam) for a child protection product was also realized in May 2020. MobiFone is a fast-growing MNO with more than 30 million customers and is considered a highly innovative telecom company nationwide. The child protection app is already available in the App Stores. The next step will be network-integrated Internet protection.
Peter Arnoth, CEO of cyan AG: "We look back on the first half of 2020, which was strongly influenced by the COVID 19 pandemic. The numerous restrictions such as travel restrictions or reduced resources due to short-time work on the part of our customers led to delays. Nevertheless, we were able to conclude several new contracts and cooperations and successfully developed existing customer relationships".
The half-year report is available for download at https://ir.cyansecurity.com/en/financial-publications/financial-reportings
cyan AG (XETR: CYR) is a leading, globally active provider of intelligent IT security solutions and telecom services with more than 15 years of experience in the IT industry. The main business areas of the company are cybersecurity solutions for end customers of mobile and fixed network internet service providers (MNO), virtual mobile network operators (MVNO) as well as banks and insurance companies. cyan's solutions are integrated into the business partner's infrastructure and then offered to their end customers ("B2B2C") under their name ("white-labeled").
Today, the group of companies has more than 50 international customers, through which cyan prod-ucts are sold to approximately 50 million end customers. cyan can offer products along the entire value chain from platform, data optimization to cyber security. In addition, cyan operates its own Research & Development Centre with the aim of identifying trends in the industry at an early stage and developing optimal product solutions. In December 2018, cyan was able to win a global group contract with Orange in an international tendering process. cyan's cooperation partners include the world's leading insurance broker Aon or Magenta Telekom.
Further information is available at www.cyansecurity.com.
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