EQS-Ad-hoc: Softing AG / Key word(s): Preliminary Results/Miscellaneous
Softing AG announces impairment of goodwill
15-Dec-2023 / 12:39 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Softing AG expects to recognize impairment losses on goodwill at Group level in the Softing IT Networks and GlobalmatiX segments in the amount of EUR 7.0 million to EUR 9.0 million at the end of year 2023.
In the IT Networks segment, the reasons for the impairment lie in the restructuring of the organization from a distribution model with third-party products to a segment with its own products and thus a changed value chain. The goodwill from the time of the acquisition based on the distribution model with third-party products will be offset by reduced future cash flows, which makes an impairment of goodwill necessary.
At GlobalmatiX, the need for impairment results from a necessary future adjustment of the sales approach in the area of key customers with a concentration on special applications and thus reduced future cash flows.
The correction of goodwill will have a negative impact on consolidated EBIT and consolidated net income for the 2023 financial year. Therefore, taking the impairments into account, Softing AG expects a consolidated EBIT of EUR -1,0 million to EUR -2,5 million for the 2023 financial year (2022: EUR 0.8 million). The target value for the consolidated EBIT before special items is forecasted at EUR 6.0 million. The Group result for the 2023 financial year is expected to be between EUR -2,5 million and EUR -4,5 million (2022: EUR -1.2 million). The impairment will have no impact on Softing’s main performance indicator “operating Group EBIT” (Group EBIT adjusted for capitalized development costs and their depreciation and amortization, as well as effects from the purchase price allocation), the Group EBITDA and the Group's cash flow.
The final adjustments will be made when the consolidated financial statements as of December 31, 2023 are prepared.
Contact:
Dr. Wolfgang Trier
CEO
End of Inside Information
15-Dec-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
Language:
English
Company:
Softing AG
Richard-Reitzner-Allee 6
85540 Haar
Germany
Phone:
+49 (0)89 456 56-333
Fax:
+49 (0)89 456 56-399
E-mail:
InvestorRelations@softing.com
Internet:
www.softing.com
ISIN:
DE0005178008
WKN:
517800
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
Softing AG is a Germany-based software and systems company. The Company operates through two segments: Industrial Automation and Automotive Electronics. The Industrial Automation segment provides tools and devices for signal and protocol analysis of industrial communication networks, gateways for linking fieldbuses to Ethernet-based communication systems and planning and administration systems, as well as interface cards, integration modules, chip solutions and communications software (stacks) for implementing bus links in systems and devices used in process and production automation. The Automotive Electronics segment offers diagnostic solutions for development, testing and production, editors for diagnostic data, diagnostic servers for the real-time processing of diagnostic data, as well as software interfaces for connecting diagnostic servers to production systems and editing and runtime systems for test sequences with connections to numerous third-party products.
SOFTING AG 
