transtec AG: 1999 With Record Turnover and Earnings
Two Strategic Operating Areas in the Future : transtec Brand Products and the Virtual WarehouseTübingen, March 28th 2000.
In fiscal year 1999, transtec AG, the business-to-business (B2B) system manufacturer with direct sales, achieved a new record turnover of 175.0 million Euro, a plus of 22.7 % in comparison with 142.6 million Euro in the previous year. The consolidated annual net income also achieved a new record high with an increase of 19.6 % to 4.1 million Euro (3.4 million Euro in the previous year). The management board will suggest a shareholder dividend of 0.60 Euro per share (0.56 Euro in the previous year) at the general meeting of shareholders on 25 May 2000 in Stuttgart.
The DFVA results taking into account goodwill, and in accordance with the methods of calculation in place since 1999, amount to 4.0 million Euro (3.9 million Euro in the previous year). This means 1.19 Euro per share (1.13 Euro in the previous year). The EBIT equals 7.4 million Euro compared with 7.2 million Euro in the previous year. In 1999, transtec invested 2.3 million Euro, particularly in improvements to the production sequences as well as in machinery, equipment, furniture and fixtures of the group companies. The equity capital equals 30.1 million Euro, equivalent to an equity ratio of
45.7 %. Despite the persistent margin pressure on the IT market, transtec managed to
grow very profitably. In the process the percentage gross yield increased from 19.2 % to 19.5 %.
Personnel Development
As of 31.12.1999, transtec employed 350 people (1998: 247 employees) within the corporate group. transtec has combated the industry-wide bottleneck of qualified employees by providing extensive training and further educational measures. According to management board member, Manfred Rubin-Schwarz: "Ensuring that our employees are qualified is one of the most important tasks in personnel development at transtec." Thus the corporate group will train 31 trainees this year (18 in the previous year) in the new IT skills. The training quota thus lies at 8.9 % (7.3 % in the previous year).
Strategy 2000
In 2000, transtec will mainly focus on the strategic division into two different operating areas. The aim is to successfully position the new Virtual Warehouse on the market.
A fundamental element of transtecs success model are still the transtec brand high-end products - products manufactured by transtec itself that contribute to the qualitative growth of the company. The main emphases are placed especially on high-quality, powerful servers and fail-safe storage products. In 2000, transtec expects growth rates of 20 - 30 % in this core operating area.
Another focal point is the Virtual Warehouse, a trendsetting e-business project. The Virtual Warehouse currently bundles more than 25,000 IT products in an Internet procurement pool, to which transtec B2B customers have access.
"Our intensive commitment to the transtec Virtual Warehouse will bring us decisive strategic advantages in the coming years", explains Bernhard Bruscha, Chairman of the management board of transtec AG. "In the coming weeks and months we will be continuously and aggressively pushing this profitable concept, which is unique in Europe, in all directions. An additional characteristic of this unique position is the integration of the transtec database in the purchasing solutions of the large software providers. We have already been certified by SAP for their business procurement system. We will form partnerships with additional suppliers in the future, and in so doing create further competitive advantages."