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cyan AG closes very successful 1st half-year 2018

10/30/2018
DGAP-News: cyan AG closes very successful 1st half-year 2018

DGAP-News: cyan AG / Key word(s): Half Year Results

30.10.2018 / 10:16
The issuer is solely responsible for the content of this announcement.


cyan AG closes very successful 1st half-year 2018

- Pro forma group revenues of 10.1 million Euro, pro forma EBITDA of 2.8 million Euro

- Integration of I-New better than expected: revenue and cost synergies are realizing faster than expected - integration progressing rapidly

- Some very important new client contracts shortly before signing - both for cyan and I-New

- Company guidance of revenues 20 million Euro and EBITDA 7 million Euro in 2018 and revenues of 35 million Euro and EBITDA of 20 million Euro in 2019 fully confirmed

Munich, October 30, 2018 - cyan AG achieved pro forma consolidated revenues of 10.1 million Euro and EBITDA of 2.8 million Euro in the first half of 2018 (pro forma consolidated figures including I-New; unaudited). Further highlights of the first half-year were the successful IPO at Frankfurt stock exchange in the Scale segment with proceeds of 31.7 million Euro and the complete acquisition of cyan Security Group GmbH. This was followed in July by the acquisition of the majority interest in I-New Unified Mobile Solutions AG ("I-New") following a successful bidding process and a subsequent cash capital increase in October with a cash inflow of EUR 7.9 million to refinance this purchase.

Michael Sieghart, CFO of cyan AG: "Our development so far in 2018 has been very eventful and successful both strategically and operationally. In order to provide our shareholders with an actual picture of the performance achieved by cyan group, we are working with pro forma group key figures in 2018, which include our new subsidiary I-New retroactively as of January 1, 2018. We are very pleased with the revenues and earnings figures achieved and confirm our company guidance for 2018 and 2019".

The pro forma cyan group including I-New achieved an EBITDA margin of 28% in the first half of the year. COGS amounted to 2.2 million Euro, personnel expenses amounted to 4.1 million Euro in the first half of the year. The result was adjusted by the expenses for the IPO in the amount of 0.8 million Euro.
Michael Sieghart: "We are well on track to achieve our 2018 revenue forecast of 20 million Euro, especially as the first half of the year usually is significantly weaker due to seasonal factors. Accordingly, we expect further growth and a gradual improvement in the EBITDA margin in the second half of the year".
cyan expects additional revenue impulses not least from new client contracts such as Surf Telecom, Flash Mobile or Alias Lab, which will become noticeable in the second half of the year. At the same time, significant revenue synergies are materializing: Since the acquisition of I-New, around 85% of I-New customers have already contractually agreed to cyan's data optimization solution. cyan expects that about 50% of these customers will have gone live with data optimization by the end of October. The remaining customers should follow successively over the next few months.

The "Roadrunner" integration program launched in July 2018 is expected to be completed by December 2018, when all important milestones will have been reached. In particular, internal processes and structures were merged and optimized as far as possible. For example, a support center will be closed by the end of the year - this measure alone will result in cost savings of 0.5 million Euro from 2019. In particular, the personnel structure will be further optimized, on the one hand to achieve positive cost effects, and on the other to do justice to the rapid growth of the Group. A new management structure was also established for the Group as a whole in order to secure the successes on the market side on a long-term basis.

The cyan Management Board remains very confident about the development in the further course of the year - cyan is currently in test phases, negotiations or contractual talks with more than 100 potential customers, from which further contracts are expected very soon.
Peter Arnoth, CEO of cyan AG: "I consider the current leads to be very promising. According to our internal analysis, they reflect a potential annual revenue volume of more than 100 million Euro. We are working hard to realize as many as possible, as quickly as possible. I-New's additional resources and network of international support and operations centers help us a lot and significantly reduce implementation risk."

Key Figures cyan/I-New Group
(pro-forma) 1
in EUR 1.1.2018 -30.6.2018
   
Total revenues 10,111,561
COGS -2,194,960
Personnel expenses -4,054,096
Gross result 3,862,505
Gross margin 38%
Other expenses2 -1,052,699
EBITDA 2,809,806
EBITDA margin 28%
1) We assume that I-New which was actually bought on 30 Jul 2018 has been consolidated since 1 Jan 2018
2) These positions include adjustments EUR845,511 for direct and indirect IPO expenses
 

About cyan:
cyan is a leading European provider of intelligent, white labeled IT security solutions with more than 15 years of experience in the area of IT security. cyan's holding company is based in Munich, Germany. The main business areas of the company are mobile security solutions for the end customers of mobile network operators and fixed line internet service providers (MNO, ISP), mobile virtual network operators (MVNO), the insurance and financial services sector and government institutions. cyan's solutions can easily be integrated into the existing infrastructure of business partners and introduced to the market via a revenue share model. In addition, data protection is assured through full integration into the customer's own network environment.

cyan operates its own research and development center and maintains close links to universities, international research institutes, security, financial and social organizations. This close collaboration ensures the early recognition of trends and technical developments for integration into cyan's products.

Further information is available at www.cyansecurity.com

Investor Contact
Florian Rukover, Head of IR
cyan AG
[email protected]

Press Contact
Frank Ostermair
Better Orange IR & HV AG
Tel. +49 89 88 96 906 14
[email protected]



30.10.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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