DGAP-News: BRAIN FORCE HOLDING AG announces third-quarter 2009/10 results
(firmenpresse) - BRAIN FORCE HOLDING AG / Quarter Results
12.08.2010 07:46
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BRAIN FORCE HOLDING AG (Vienna Stock Exchange: BFC, Reuters: BFCG), a
leading IT services provider with business operations in Austria, Germany,
Switzerland, Italy, the Netherlands, Czech Republic and Slovakia, announced
its business results today for the first nine months of the 2009/10
financial year (October 1, 2009 to June 30, 2010).
The third quarter was still characterized by the difficult economic
environment, similar to the previous six months. While several industries
achieved perceptible increases in their order intake in recent months, at
best the situation with respect to the business areas of the BRAIN FORCE
GROUP can be described as stabilization at a low level. 'Our operating
revenue and earnings development continues to be adversely affected by low
proceeds from license sales and price pressure in the service business. For
this reason, we determinedly continued with the implementation of the
previously-announced restructuring measures in the third quarter, in order
to quickly and sustainably improve the company's operating performance.
Because of the book gains derived from the strategic transactions concluded
in the first quarter, we can report clearly positive earnings in the first
nine months of our fiscal year despite high restructuring costs', says
Michael Hofer, Chief Executive Officer of BRAIN FORCE HOLDING AG.
Group revenues in the third quarter were down 21% to EUR 16.57 million.
Operating EBIT (before non-recurring expenses and income) fell from EUR
-0.01 to -0.41 million. Accordingly, total Group revenues in the first
three quarters of the 2009/10 financial year declined by 23%, to EUR 53.97
million. Adjusted for the already-mentioned transactions, the organic
revenue drop in the first nine months was 18%. Due to weak license sales,
ongoing price pressure and the partial under-utilization of salaried IT
consultants, particularly in Germany and the Netherlands, the operating
EBITDA of the BRAIN FORCE Group decreased from EUR 4.42 to 1.14 million,
and operating EBIT from EUR 1.67 to -1.09 million. 'However, it is
important to note that BRAIN FORCE had not yet been impacted by the
economic crisis in the first quarter of the previous financial year
(October to December 2008), and succeeded in generating record earnings at
that time', Michael Hofer adds.
Restructuring costs of EUR 1.82 million have been incurred in the current
financial year, which were significantly overcompensated by the book gain
of EUR 2.47 million derived from the sale of the Professional Services
business in Austria and the realization of hidden reserves of EUR 3.86
million within the context of the initial at-equity consolidation of
SolveDirect. 'In total the BRAIN FORCE Group generated an EBITDA of EUR
5.65 million, an EBIT of EUR 3.42 million and a net profit of EUR 1.71
million in the first nine months', says Thomas Melzer, Chief Financial
Officer of BRAIN FORCE HOLDING AG in summarizing the company's overall
performance.
In order to effectively counteract the significant revenue decline, the
number of salaried employees was reduced by about 200 people (or about30%
of total staff) between the end of 2008 and June 2010. In turn, this will
lead to a decrease in personnel expenses of approximately EUR 10 million
annually. Additional savings were realized by short-time working in Germany
as well as a downward adjustment in the number of free-lance employees and
all other cost items. 'These were painful but necessary measures to put the
company on a sound financial basis with respect to costs', Thomas Melzer
explains.
In the 2009/10 financial year, BRAIN FORCE continues to expect Group
revenues of about EUR 70 million and a clearly positive EBIT, taking into
account non-recurring restructuring costs of EUR 1.82 million and book
gains of EUR 6.33 million. 'From today's perspective, we anticipate a more
favorable economic environment starting in September and an upswing in
business after the summer holiday months of July and August. From that
point in time the BRAIN FORCE Group should be able to generate sustainably
positive operating results due to its considerably streamlined cost
structure', CEO Michael Hofer concludes.
The Q3 Quarterly Report 2009/10 is now available for downloading at the
Website www.brainforce.com.
Earnings data 1) Oct. 2009 to Oct. 2008 to Chg.%
June 2010 June 2009
Revenues EUR million 53.97 70.49 -23
EBITDA EUR million 5.65 3.35 +69
Operating EBITDA 2) EUR million 1.14 4.42 -74
EBIT EUR million 3.42 0.59>100
Operating EBIT 2) EUR million -1.09 1.67>100
Profit before tax EUR million 1.76 -0.53>100
Profit after tax EUR million 1.89 -4.30>100
Employees 3) 800 1.085 -26
Balance sheet data 30.6.2010 30.9.2009 Chg.%
Equity EUR million 21.02 19.31 +9
Net debt EUR million 8.67 5.65 +54
Working capital EUR million 3.74 2.83 +32
Equity ratio in % 39 35 -
Gearing in % 41 29 -
1) Earnings data refers to results from continuing operations
2) Adjusted for non-recurring expenses and income
3) Average number of employees (salaried and free-lance) during the period
contact:
BRAIN FORCE HOLDING AG
Thomas Melzer
Karl-Farkas-Gasse 22 / 4. OG
A-1030 Wien
t +43 (0)1 263 09 09 - 12
f +43 (0)1 263 09 09 - 40
investorrelations(at)brainforce.com
12.08.2010 07:46 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: BRAIN FORCE HOLDING AG
Karl-Farkas-Gasse 22 / 4. OG
A-1030 WienÖsterreich
Phone: +43 (0) 1 2630909-0
Fax: +43 (0) 1 2630909-40
E-mail: investorrelations(at)brainforce.com
Internet: www.brainforce.com
ISIN: AT0000820659
WKN: 919331
Listed: Foreign Exchange(s) Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
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Datum: 12.08.2010 - 07:46 Uhr
Sprache: Deutsch
News-ID 31978
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