DGAP-News: QSC accelerates transformation process into ICT provider
(firmenpresse) - DGAP-News: QSC AG / Key word(s): Quarter Results
QSC accelerates transformation process into ICT provider
13.08.2012 / 07:30
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QSC accelerates transformation process into ICT provider
- ICT revenues in Direct Sales advance by 29 percent in Q2 2012
- Conventional TC revenues decrease by 25 percent year on year
- In Q2 2012, the QSC Group posted
o Revenues of EUR 116.6 million
o An EBITDA of EUR 18.1 million
o A free cash flow of EUR 6.6 million
- Guidance tightened
Cologne, August 13, 2012. In the second quarter of 2012, QSC AG again
accelerated its transformation process into an ICT provider. ICT revenues
in Direct Sales rose by 29 percent year on year to EUR 45.9 million. On the
other hand, revenues in the Resellers Business Unit, the vast majority of
which consist of conventional TC revenues, fell by 25 percent to EUR 41.9
million. In the third business unit, Indirect Sales, revenues declined by 6
percent year on year to EUR 28.9 million, although rising moderately from
the first quarter of 2012. The QSC Group grew its revenues by EUR 0.6
million overall from the preceding quarter to EUR 116.6 million; as a
result of the decline in conventional TC revenues, though, it remained
below the previous year's level of EUR 121.8 million.
As a result of the decline in TC business and the strong dynamic in the ICT
segment, Direct Sales for the first time made the largest contribution to
total revenues in the second quarter of 2012. 'Our evolution into an ICT
provider is bearing fruit,' states QSC Chief Executive Officer Dr. Bernd
Schlobohm. 'We're reducing our dependency upon conventional, low-margin TC
business and step by step we're expanding our position in the
forward-looking ICT market.'
Strong influx of new orders necessitates workforce expansion
Growth in Direct Sales and new orders involving terms of at least three to
five years and a volume of EUR 40.4 million in the second quarter of 2012,
alone, are necessitating expansion of the workforce, especially in IT
Outsourcing and IT Consulting. As of June 30 of the current fiscal year,
the QSC Group employed a total of 1,417 people, around 80 more that at the
outset of the year. Nevertheless, it is only possible to cope with the very
high level of new orders in Direct Sales by additionally employing external
IT specialists on a temporary basis. Since, in addition, the QSC Group has
been operating two fully functional headquarters of publicly traded
companies since the acquisition of INFO AG in May 2011 and has been
shouldering the ongoing integration costs, its EBITDA of EUR 18.1 million
fell slightly short of the previous year's level of EUR 19.3 million.
EBITDA did improve by EUR 0.6 million by comparison with the first quarter
of 2012, with the EBITDA margin rising by one percentage point to 16
percent. While at EUR 2.9 million, consolidated net income fell short of
the previous year's level of EUR 3.9 million, it was up EUR 0.6 million
from the first quarter of 2012.
It typically takes six to nine months before this high level of new orders
in Direct Sales can manifest itself in corresponding revenue and
profitability contributions. It is during this transition phase in the case
of Outsourcing projects that the IT infrastructure and IT systems are
transferred to the QSC environment, which involves ongoing expenses and
preliminaryinvestments on the part of QSC. Nevertheless, capital spending
of EUR 10.9 million in the second quarter of 2012 remained below the
previous year's level of EUR 12.7 million. In spite of higher expenses and
investments in future growth during the second quarter of 2012, free cash
flow reached EUR 6.6 million, in contrast to EUR 7.0 million for the same
quarter one year earlier.
QSC Group anticipates revenues of between EUR 480 and EUR 490 million for
2012
During the first half of 2012, the QSC Group again accelerated its
transformation process into an ICT provider: Direct Sales developed into
the segment with the highest revenues. Moreover, the INFO AG merger was
concluded in July 2012, earlier than had been anticipated. Against this
backdrop, the QSC Group is tightening the guidance it had announced on
March 5, 2012: The company now anticipates revenues of between EUR 480 and
EUR 490 million, an EBITDA margin of 16 percent, as well as a free cash
flow of between EUR 22 and EUR 26 million. Although the company will
already be initiating any number of measures in the second half of 2012
aimed at increasing integration following the merger, which had not been
expected to predominantly come to fruition until the coming year under the
company's former planning, QSC is thus reiterating all of the minimum
targets it had announced at the outset of the year. The QSC Group continues
to see the current fiscal year as a year of preparation for reaching its
full strength and power. QSC Chief Executive Officer Dr. Schlobohm
stresses: 'Concluding the merger sooner than expected increases our freedom
of action. We want to utilize this opportunity and achieve our annual
targets, in spite of the costs this will involve.'
In EUR million Q2 2012 Q1 2012 Q2 2011Queries to:
Revenues 116.6 116.0 121.8
EBITDA 18.1 17.5 19.3
EBIT 4.9 4.0 6.4
Consolidated net income 2.9 2.3 3.9
Free cash flow 6.6 5.8 7.0
CAPEX 10.9 8.7 12.7
Workforce 1,417 1,366 1,258
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest(at)qsc.de
Internet: www.qsc.de
Notes:
The 6-month report is available for download at
www.qsc.de/en/qsc-ag/investor-relations.html. This corporate news contains
forward-looking statements. These forward-looking statements are based on
current expectations and forecasts of future events by the management of
QSC AG. Due to risks or mistaken assumptions, actual results may deviate
substantially from those made in such forward-looking statements.
End of Corporate News
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Language: English
Company: QSC AG
Mathias-Brüggen-Straße 55
50829 Köln
Germany
Phone: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: invest(at)qsc.de
Internet: www.qsc.de
ISIN: DE0005137004WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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181345 13.08.2012
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