2000 results : a year of transition and reorganization

1st quarter 2001 sales : first signs of recovery

The XRT group, the Secure Financial Flow Architect, recorded consolidated sales of €10.66 million for the first quarter of 2001. This is a 3.3% increase compared to the first quarter of 2000.

In € millions 1st quarter 2001 1st quarter 2000 % increase/(decrease)
Southern Europe 4.08 3.98 2.5%
Northern Europe 1.88 1.71 9.9%
North America 2.54 2.16 17.6%
Latin America –
Iberia 1 .57 2.07 (24.2%)
Fasset Technologies 0.59 0.40 47.5%
GROUP TOTAL 10.66 10.32 3.3%

Since the end of 2000, the group has been structured into four regional profit centers. All have shown growth in the first quarter of 2001, with the exception of Latin America – Iberia, where the reorganization currently in progress should yield results during the balance of the year.

During the first quarter, XRT acquired 125 new customers. The Group entered into a number of contracts with prestigious multinationals in the communications, chemicals, catalogue sales and automobile sectors.

2000 results : a year of transition and reorganisation

For the XRT Group, the year 2000 marked the first interruption in 17 years of growth and profitability.
The decline in revenues was significant in France (down by 43 percent) due to :

- the accelerated re-equipment in 1999 of virtually the entire customer base with new software versions (euro and year 2000 compatible);

- a change in the method of distribution from direct to indirect sales.

Sales outside France fell 3% following challenges XRT experienced related to integrating acquired companies and establishing a global organization. At the end of 2000, these sales represented 60% of consolidated sales.

in € millions 2000 1999
Consolidated sales 41.6 55.0
Operating profit (16.8) 5.8
Restructuring costs (3.7) -
Consolidated net profit
/(loss) before
goodwill amortization (18.2) 3.9
Group net profit (22.0) 2.5

The combination of increased operating expenses related to the restructuring and the sharp unexpected fall in sales caused an operating loss of €16.8 million.

The Group net loss was €22.0 million, which is €3.0 million higher that forecast in October 2000 at the time of the capital increase, due particularly to the increase of €1.1 million in operating expenses, €0.7 million in restructuring costs and €0.6 million exceptional expenses.

During the second half of 2000, XRT began a major restructuring and reorganization program involving cost reductions. As a result, the XRT Group has entered the year 2001 with confidence.

2001 prospects

In spite of the uncertain economic outlook that has lead to cautious investment in technology, the XRT Group predicts a return to growth, based on the following strengths:

- a business positioned to address the problems financial and treasury management face as a result of this economic situation; this includes improved cash collection, optimization of cash surplus, reduction of debt and control of risks.

- an enhanced and expanded product offering (e.g. Universe, Globe $ and an internet interoperability server) which includes intranet and extranet solutions that enable companies to establish the "Collaborative Treasury Management" concept

- a presence on four continents, which is essential to meeting the needs of multinational businesses.

Based on these strong fundamentals, the XRT group is targeting a return to breakeven for the year 2001.

About XRT

XRT (Euronext Paris, ticker 5458), the secure financial flow architect provides financial executives and treasurers with truly global solutions for controlling financial risks and optimizing cash flows.

Financial executives are nowadays faced with the development of "collaborative commerce", a new form of exchange based on electronic transactions. In this new context, reliability and high security are of the essence. To meet the need for complete security, XRT offers Internet application platforms allowing global solutions.

XRT "Collaborative Treasury Management" solution offers a comprehensive financial architecture. It ensures the complete protection of ERP and financial control applications, while complying with the FAS 133/IAS 39 standard and the international banking environment.

XRT has formed strategic alliances with key players such as Citrix, IBM, Microsoft, Novell, Oracle, Sybase... with world-renowned software editors such as Business Objects, JD Edwards, Lawson Software, People Soft, SAP, and with banking partners such as ABN-AMRO, BNP-Paribas, CCF-HSBC, Chase, Commerzbank, Crédit Agricole-Indosuez, ING Bank, La Caixa, Natexis-Banques Populaires. These partnerships, combined with XRT international presence in 55 countries and its high level of expertise, has enabled the company to help over 10 000 clients.
XRT started in 1983 as CERG Finance. It generated a M€ 41,6 turnover in 2000 and counts almost 400 collaborators.

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