Genesys conferencing reports first-half 2001 results; updates outlook for 2001

GENESYS CONFERENCING REPORTS FIRST-HALF 2001 RESULTS; UPDATES OUTLOOK FOR 2001 Highlights: ·Revenue continues to grow rapidly in a robust conferencing market ·Growing automated services drive 300-basis-point gross margin improvement ·Integration of Vialog and Astound well underway ·Significant new business wins will add to H2 2001 ·Executed savings plan will generate Euros 4.25 million of savings per quarter ·EBITDA margin for full year 2001 expected to be between 12% and 14% The nature of the events that occurred on Tuesday, September 11 in the United States could impact the forecasts presented, on a scale impossible to assess at the present time. [Montpellier, France and Stockholm, Sweden, September 13, 2001.] Genesys Conferencing (Euronext: 3955 and Nasdaq: GNSY), the world's leading conferencing specialist, today announced pro forma and consolidated results for the first half ended June 30, 2001. The company reported preliminary unaudited pro forma second-quarter results on July 26, 2001. Genesys also updated its outlook for the full year. Summary of consolidated operations - pro forma Euros millions (except per share data) Six months ended June 30, 2000 December 31, June 30, 2001 2000 Revenues 85.3 96.6 106.5 Gross Profit 45.9 51.9 60.6 Gross Margin 53.8% 53.7% 56.9% EBITDA* 15.6 8.6 12.3 EBITDA Margin 18.3% 8.9% 11.6% EBIT** 8.9 0.0 3.0 Net income (17.8) (21.6) (30.0) (loss) Net cash EPS 0.83 0.35 0.48 *excludes Vialog opening balance sheet adjustments of H1 2001 E 3.0 million ** represents EBIT before the amortization of goodwill, other intangibles and acquisition and financing costs. Also excludes Vialog opening balance sheet adjustments : H1 2000: E-0.7 million, H2 2000: E- 0.3 million, H1 2001: E3.3 millions Strong pro forma revenue growth in a robust conferencing market Pro forma results reflect the combined performance of Genesys Conferencing, Vialog Corporation, which was acquired by Genesys on April 26, 2001, and Astound Incorporated, which was acquired on March 28, 2001. For the six months ended June 30, 2001, revenues rose 25 percent to Euros 106.5 million (U.S. $90.3 million) from Euros 85.3 million (U.S. $72.3 million) in the first half of 2000 and 10 percent from Euros 96.6 million (U.S. $81.9 million) in the second half of 2000. Volumes have grown in excess of 40% from the first half of 2000. Automated services accounted for 31.4 percent of revenues, up from 13.9 percent for the first half of 2000 and 21.3 percent for the second half of 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) were Euros 12.3 million (U.S. $10.4 million), a significant improvement from Euros 8.6 million (U.S $7.2 million) for the second half of 2000. EBITDA for the first half of 2001 excludes euros 3.0 million of opening balance sheet valuation adjustments in connection with the acquisition of Vialog Corporation. The EBITDA margin was 11.6 percent compared with 8.9 percent for the second half of 2000. Automated services driving gross margin "We are very pleased with our revenue growth for the first half of the year. The global conferencing market is very healthy, and we continue to grow rapidly," commented Francois Legros, Genesys Conferencing's chairman and chief executive officer. "Our high-margin automated services are becoming a greater proportion of our revenues, which is driving our gross margin expansion. We continue to see gross margin growing at a faster rate than our revenues." Legros added that Genesys believes automated services will account for 40 percent of total audio revenues by year end. Cost savings plan executed Legros said that "its announced savings plan will generate, starting in September 2001, Euros 4.25 million (U.S $3.6 million) in cost savings per quarter. This plan includes staff reduction in workforce in Europe and North America of respectively 5% and 7%". Updated outlook for 2001 "We have recently won significant new contracts with high-profile accounts and these will contribute to our second-half results, however, these contracts are not ramping up as quickly as expected and their contributions will be slightly less than planned for 2001." Legros added that Genesys Conferencing expects those contracts to be at full maturity during the first half of 2002. "Combined with a slower than expected growth of internet services and the one time cost associated with the implementation of the savings plan, we now expect pro forma EBITDA margin for 2001 to be in the range of 12 percent to 14 percent (excluding the opening balance sheet valuation adjustments noted above)," Legros said. "While these expectations fall short of our financial goals for the year, they translate to strong revenue growth, significant gross margin and EBITDA margin expansion. Legros added, "With a strong customer base, a unique market position, a reduced expense base, Genesys is now well positioned to generate revenue growth and continue its focus on profitability improvement." Second-Quarter Conference Webcast A replay of the first-half earnings webcast conference is available from www.genesys.com. About Genesys Conferencing: Founded in 1986, Genesys Conferencing is the world's leading conferencing specialist: audio conferencing, data conferencing, video conferencing and webstreaming. Working in a rapidly growing market and enjoying unique worldwide coverage as a result of its geographic expansion policy, Genesys Conferencing has established its advanced technology in 16 countries throughout Europe, Asia Pacific and the United States. Genesys Conferencing's ordinary shares are listed on the Nouveau Marché in Paris (Euronext: 3955) and its ADSs are listed on the Nasdaq National Stock Market (Nasdaq: GNSY). Genesys Conferencing's revenue has grown by 24 times, internally and through acquisitions, over the past five years. The company's average yearly revenue growth rate during that same time span was 89 percent. In 2000, Genesys Conferencing's revenue amounted to approximately U.S. $85.3 million, up 95 percent from 1999, representing 305 million of conferencing minutes. Combined revenues of Genesys and Vialog for the full-year 2000 were US $164.4 million. For additional information contact: Madeleine Bardlow, Managing Director Genesys Conferencing AB (Sweden) Ph: 0707 - 82 02 23 E-mail: madeleine.bardlow@genesys.com www.genesys.se. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/09/14/20010914BIT00130/bit0003.doc http://www.waymaker.net/bitonline/2001/09/14/20010914BIT00130/bit0003.pdf