adesso will not continue developing the dynamic.suite product family
Dortmund, 29. May 2012 - adesso AG will not continue developing the dynamic.suite product family for energy and water management in its present form and will cease financing dynamicutilities GmbH, the Group company commissioned to develop this product family. Further delays in module completion, in combination with a later market entry as well as the structural challenges recently determined by external experts, led to a revaluation of the opportunities and risks associated with continued investment in this product family.
Ongoing monthly capital requirements amounted to EUR 0.2 million. Developments impacted earnings by EUR 0.15 million per month. Financially, the discontinuation of development will mainly result in the depreciation of goodwill, the amortisation of internally-generated intangible assets and of deferred tax assets in the amount of approximately EUR 2.1 million, while also causing subsequent operational costs. In light of this unforeseen development expense, we are increasing EBITDA guidance to EUR 8.8 to 9.1 million while revising the pre-tax profits forecast down to EUR 3.5 million due to depreciation and amortisation.
The Executive Board