German IT services company Cenit AG, Stuttgart, yesterday reported net income for 1998 up 125%, at DM2.7m ($1.49m) on revenue that was up 52% at DM120.5m ($66.38m), with both constituting record figures.
The company, quoted on Frankfurt’s Neuer Markt small cap exchange, said all three of its business areas contributed to the strong performance. In CAD/CAM, where it is an IBM business partner, revenue grew 30%, to DM67m ($36.92m) last year. Its e-business sector was up 107% to DM26.9m ($14.8m), while revenue from IT services increased 84%, to DM26.5m ($14.6m).
Part of the logic behind last year’s flotation was to finance expansion, and this year’s revenue figure includes a contribution of DM3m ($1.65m) from what is currently its sole foreign subsidiary, Cenit Ltd in the UK. A company spokesman said it plans to expand internationally via acquisition.
The growth in services is attributed to increasing demand for high-availability and client-server systems, systems management and selective outsourcing, all of which are within its area of its expertise. Cenit is primarily an implementer of other companies’ software, notably Dassault Systemes, IBM, Lotus, FileNET and Tivoli, though it does develop some packages of its own to complement these offerings.
Cenit also said it had a strong first quarter in 1999, with revenue up 50% at DM30.75m ($16.96m) and a gross profit up 49% at DM14.8m ($8.16m). The targets for the entire year are revenue up 33% at DM160m ($88.26m) and earnings per share up 54% at DM7.00 ($3.86).
