11.08.2014
QSC AG DE0005137004
DGAP-News: QSC generates revenues of EUR 109.4 million in second quarter of 2014
DGAP-News: QSC AG / Key word(s): Quarter Results
QSC generates revenues of EUR 109.4 million in second quarter of 2014
11.08.2014 / 07:30
---------------------------------------------------------------------
QSC generates revenues of EUR 109.4 million in second quarter of 2014
- EBITDA of EUR 10.5 million
- Free cash flow of EUR 5.0 million
- Guidance narrowed
- Minimum dividend reiterated
Cologne, August 11, 2014. In the second quarter of 2014, QSC generated
revenues of EUR 109.4 million, as opposed to EUR 113.5 million for the same
quarter one year earlier. While there was less of a decline in low-margin
TC revenues than had been planned, higher-margin ITC business, especially
IT consulting as well as sales of new ICT products, developed on a weaker
note than anticipated.
Unfavorable revenue mix hurts results
Results were hurt by the unfavorable revenue mix as well as by unplanned
non-recurring expenses in the amount of some 2 million euros to stabilize
and optimize IT operations. As had been expected, moreover, higher
investments in future fields of growth as well as the elimination of a
deferred income line item in the amount of some EUR 5 million per quarter,
could be seen on the profitability side; until the end of 2013, QSC had
been deferring as income the payment it had received in 2011 in connection
with premature termination of collaboration with TELE2 in network operating
company Plusnet. Consequently, EBITDA stood at EUR 10.5 million in the past
quarter, in contrast to EUR 19.2 million for the same period the year
before. Given virtually unchanged depreciation expense, there was an
operating loss of EUR -2.0 million, as opposed to an operating profit of
EUR 6.6 million in the second quarter of 2013. The consolidated net loss
stood at EUR -3.9 million, in contrast to a consolidated net profit of EUR
5.2 million for the same period one year earlier. Since the return of the
deferred income line item did not impact liquidity, free cash flow totaled
EUR 5.0 million in the second quarter of 2014, as opposed to EUR 6.5
million for the same quarter the year before.
QSC planning dividend of at least EUR 0.10 per share
Following the weaker-than-anticipated second quarter of 2014, QSC is now
narrowing the guidance for the full 2014 fiscal year that it had announced
in late February 2014 to the lower end of the originally indicated ranges.
As explained at the outset of the year, revenues of around EUR 450 million,
an EBITDA of around EUR 60 million and a free cash flow of around EUR 26
million will necessitate a sharp rise in sales of innovative ICT products
during the second half of 2014 and, moreover, a recovery of IT Consulting
business. At the same time, the company is reiterating its plans to pay a
dividend of at least the previous year's level of EUR 0.10 per share for
the current fiscal year.
QSC launches efficiency program
In view of unsatisfactory profitability in the past quarter, QSC is
launching a program aimed at increased efficiency. The company wants to
exploit its existing potential for greater efficiency across all locations
throughout the entire organization, thus enhancing its strength and power.
The same objective is being pursued by a change management program that
includes the reallocation of professionals and executives. In the future,
QSC intends to respond to stronger demand in individual lines of business
primarily by making use of already existing internal human resources. It
was already in the second quarter of 2014 that the workforce increased by
only seven people to a total of 1,712 employees as of June 30, 2014.
At the same time, the company is again scrutinizing its processes in
innovation management. The objective is to accelerate the processes of
bringing innovations to market and to assure that keen customer interest is
translated more than before into corresponding revenues. QSC Chief
Executive Officer Jürgen Hermann notes: "We have to do a much better job of
translating our development strengths into market strength." Only so, he
goes on to say, can QSC correctly utilize the opportunities that present
themselves in the Cloud market and in transitioning the economy to the
Industry 4.0 Age. Nor is Hermann counting solely on internal resources in
this connection: "We want to acquire one or two more technology companies
in 2014." Most recently, in February 2014, QSC acquired the majority
interest in encryption specialist FTAPI and in subsequent months has
integrated its products into its own portfolio.
In summary, Hermann stresses: "2014 will continue to be a year of investing
in future fields of growth. The awards honoring QSC as a Cloud Leader,
numerous development partnerships as well as customer inquiries show one
thing: We're on the right track! QSC is unquestionably evolving into a
leading provider of Cloud services and a partner of choice for German small
and mid-size enterprises in the Industry 4.0 Age."
In EUR million Q2 2014 Q2 2013 Revenues 109.4 113.5 EBITDA 10.5 19.2 EBIT -2.0 6.6 Consolidated net profit -3.9 5.2 Free cash flow 5.0 6.5 Capital expenditures 8.2 8.7 Workforce* 1,712 1,615*As of June 30 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. Queries to: QSC AG Arne Thull Head of Investor Relations Phone: +49 221 669-8724 Fax: +49 221 669-8009 E-mail: [email protected] --------------------------------------------------------------------- 11.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: QSC AG Mathias-Brüggen-Straße 55 50829 Köln Germany Phone: +49-221-6698-724 Fax: +49-221-6698-009 E-mail: [email protected] Internet: www.qsc.de ISIN: DE0005137004 WKN: 513700 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 281576 11.08.2014
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
QSC AG ISIN: DE0005137004 können Sie bei EQS abrufen
IT-Services , 513700 , QBY , XETR:QBY