August 13, 2020

InVision AG Publishes Financial Half-Year Report and Updates Annual Forecast for 2020

InVision AG (ISIN: DE0005859698) generated total revenues of EUR 6.236 million in the first half of the current fiscal year. Compared to the first half of 2019, this corresponds to a decrease of 2 percent (6M 2019: EUR 6.395 million). Revenues in the Workforce Management product area declined by 3 percent to EUR 5.995 million (6M 2019: EUR 6.211 million). In the Education segment, revenues increased by 31 percent to EUR 0.241 million (6M 2019: EUR 0.184 million).

EBIT (Earnings Before Interest and Taxes) rose by 24 percent from EUR 0.365 million in the first half of 2019 to EUR 0.453 million in the first six months of the current fiscal year. The EBIT margin was at 7 percent (6M 2019: 6 percent). The consolidated result decreased to EUR -0.069 million (6M 2019: EUR 0.203 million), which is mainly due to the proportionate reduction of deferred tax assets from the internal license sale last year. Accordingly, earnings per share also went down to -0.02 Euro (6M 2019: 0.09 Euro).

The operating cash flow declined by 27 percent to EUR 2.119 million (6M 2019: EUR 2.918 million). Liquid funds increased to EUR 9.594 million as of 30 June 2020 (31 December 2019: EUR 2.616 million), which is largely attributable to the use of bank credit lines.

Due to the corona pandemic, the International Monetary Fund (IMF) has now significantly revised its forecast for 2020 with regard to a slowdown of the economic output in the Eurozone and the USA. In view of this, InVision AG has to assume that in individual cases there will be delays in closing new customer contracts and a reduction in revenues from existing contractual relationships in this fiscal year.

In addition, the Company will probably not be able to implement the recruitment activities that were originally planned for the fiscal year 2020 at the intended speed, as candidates currently tend to have only low willingness to change jobs, combined with a high level of uncertainty due to the current economic situation.

Therefore, the Company expects lower expenses than originally planned in the short term and lower revenue growth in the medium term. Specifically, InVision now expects to generate revenues of EUR 11.6 to 12.6 million and an EBIT of between EUR -0.5 and +0.5 million for the entire fiscal year 2020.

The Company’s Consolidated Interim Statements for the half-year of the 2020 financial year is now available here on this website at: www.ivx.com/investors.