DGAP-News: BRAIN FORCE HOLDING AG announces positive operating results in the first quarter 2010/11
(firmenpresse) - DGAP-News: BRAIN FORCE HOLDING AG / Key word(s): Quarter Results
BRAIN FORCE HOLDING AG announces positive operating results in the
first quarter 2010/11
16.02.2011 / 08:00
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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, Slovakia and the USA,
announced positive operating results today for the first quarter of the
2010/11 fiscal year (October 1 to December 31, 2010). Following two
economically difficult years, the company was able to achieve a positive
operating EBIT in all regions and on a Group level as well as a free cash
flow of close to EUR 1 million.
In the first three months of the 2010/11 fiscal year, revenues of the BRAIN
FORCE Group declined by 19% to EUR 17.05 million. However, this decline was
primarily related to changes in the consolidation range due to three
strategic transactions carried out in Austria. The organic revenue drop was
comparatively low at only 6%. 'This was primarily due to the proceeds from
license sales in Italy which were below expectations, and the lower order
volume of a large customer in the Netherlands - two effects which could not
be fully compensated by the partially very positive developments in the
other business areas', explains Michael Hofer, Chief Executive Officer of
BRAIN FORCE HOLDING AG.
In the first three months, operating EBITDA was down from EUR 1.11 to 0.76
million in a year-on-year comparison. Operating EBIT was positive in all
regions, rising slightly from EUR 0.20 to 0.21 million. Adjusted for the
effects of three strategic transactions, operating EBITDA improved from EUR
0.60 to 0.77 million and operating EBIT achieved a turnaround from EUR
-0.05 to +0.24 million. 'We succeeded in converting the increased sales
pipeline into measureable results in the first quarter. The basis was the
successfully implemented restructuring and cost reduction measures,
supported by an improved business environment', says Michael Hofer about
the corporate development.
In Germany (56% of Group revenues), revenues rose 1% to EUR 9.61 million,
whereas EBITDA improved by 16% to EUR 0.67 million, and EBIT was up 26% to
EUR 0.47 million. This solid development is primarily related to the
success of the Network Performance Hardware business, which achieved
considerable growth rates in revenue and earnings. In the South West Europe
region (31% share of Group revenue), the restructuring measures,
particularly capacity adjustments at the BRAIN FORCE subsidiary in Italy,
had a positive impact. Accordingly, despite a revenue decline of 9% in the
first quarter, the region posted clearly positive results, featuring an
EBITDA of EUR 0.34 million and EBIT of EUR 0.15 million. In the Central
East Europe region (4% of Group revenue), the organic revenue drop was 21%
in the first three months of the new fiscal year due to order delays.
Nevertheless, EBITDA amounted to EUR 0.03 million, and EBIT was also
slightly positive. In the Netherlands (9% of Group revenue), the 24%
revenue decline was more than offset by the implemented restructuring
measures. EBITDA significantly improved by 42% to EUR 0.14 million, and
there was a turnaround in EBIT, which was positive at EUR 0.01 million for
the first timein five quarterly periods.
'It is particularly gratifying to see the considerable rise in cash flow,
thanks to the improved operating result and the ongoing optimization of
working capital', says Chief Financial Officer Thomas Melzer, emphasizing
the positive development. The free cash flow totaled close to EUR 1 million
in the first three months of the fiscal year, serving as the basis for a
reduction in net debt to EUR 8.28 million and an increase in cash and cash
equivalents to EUR 4.68 million. The result for the period after tax was
EUR -0.65 million. 'Excluding the expected expansion costs for the market
build-up of SolveDirect in the USA, which BRAIN FORCE deliberately
accepted, as well as the related dilution effects of the capital increases
by a financial investor, BRAIN FORCE actually achieved a break-even result
after tax', Thomas Melzer continues.
The company's objective for the current 2010/11 fiscal year remains
unchanged i.e. to achieve a positive operating result. 'The good
performance in the months October to December and the developments in this
second quarter show that we are on the right track to achieve this goal. I
also assume that the positive earnings development will ultimately be
reflected in the price of the BRAIN FORCE share', Michael Hofer concludes.
BRAIN FORCE will strive to be readmitted for continuous trading via the
XETRA system on the Frankfurt Stock Exchange, in order to improve trading
of the company's stock, particularly for German shareholders.
The Q1 Quarterly Report 2010/11 is now available for downloading at the
Website www.brainforce.com.
Earnings data 1) 10-12/2010 10-12/2009 Chg.%
Revenue EUR million 17.05 21.03 -19
EBITDA EUR million 0.76 3.52 -78
Operating EBITDA 2) EUR million 0.76 1.11 -31
EBIT EUR million 0.21 2.61 -92
Operating EBIT 2) EUR million 0.21 0.20 +9
Profit before tax EUR million -0.58 2.43>100
Profit after tax EUR million -0.65 2.37>100
Employees 3) 700 921 -24
Balance sheet data 31.12.2010 30.09.2010 Chg.%
Equity EUR million 19.43 20.11 -3
Net debt EUR million 8.28 9.04 -8
Equity ratio in % 38 39 -
Gearing in % 43 45 -
1) From continuing operations
2) Adjusted for the non-recurring book gain of EUR 2.41 million from the
sale of the Professional Services business in Austria in 2009
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
End of Corporate News
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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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112275 16.02.2011
Datum: 16.02.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 33217
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