SQS -1x Square

 

TIDMSQS 
 
 
SQS Software Quality Systems AG 
25 June 2009 
 
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25 June 2009 
SQS Software Quality Systems AG 
("SQS" or "the Company") 
 
 
Trading Update 
 
 
SQS Software Quality Systems AG (AIM:SQS.L), the world's largest supplier in 
independent software testing and quality management services, is today providing 
a further update on trading for the half year ending 30 June 2009. 
 
 
Trading since the previous update announced on 14 May 2009 has been in line with 
management expectations. Our management consulting and core businesses in 
Austria and Switzerland continue to perform well and although our markets in the 
German, UK and Nordic regions remain affected by the economic downturn they do 
appear to have stabilised. We have also seen the recommencement of several large 
Financial Services IT projects, showing signs of a growing confidence in the 
sector and boding well for the future. 
 
 
We are pleased to report a number of recent new contract wins, including a major 
agreement secured with a leading German bank, a large insurance provider in the 
UK and a UK based telecommunications company. New client wins have also been 
secured in a variety of additional sectors, including utilities and gaming. 
 
 
As previously highlighted, SQS management have been undertaking a number of cost 
cutting initiatives in the half, including initiating a process to reduce the 
average cost of sales per consultant by growing the offshore and near-shore test 
centres and by adjusting our onshore cost structure to better suit the current 
market. We are pleased to report that all intended cost cutting measures have 
now been fully implemented and that our capacity is now more optimally aligned 
with current market conditions. 
 
 
In addition, we are aided in increasing the flexibility of our cost base by the 
German Government's "Short Work" initiative. This enables employers to 
temporarily send home unutilised employees on a reduced salary, majority funded 
by the German government. This is particularly relevant for SQS as it allows the 
Company to retain non-billing employees for delayed projects (as opposed to 
cancellations) whilst saving on costs. 
 
 
Rudolf van Megen, Chief Executive Officer of SQS commented, "Our core markets 
remain difficult to predict. However, we have been encouraged by the number of 
significant contracts we have closed in recent weeks and continue to see strong 
growth in Austria and Switzerland. The cost reduction measures we have been 
implementing throughout the first half are all now in effect, and should reduce 
the pressure on Group margins. We believe that the Company remains on course to 
meet current market expectations for 2009 and that it will be able to react 
quickly to any further market changes. SQS continues to be cash generative and 
debt free." 
 
 
SQS will be announcing its results for the six months ending 30 June 2009 on 8 
September 2009. 
 
 
Enquiries: 
 
 
+---------------------------------+---------------------+ 
| SQS Software Quality Systems AG | Tel. +49 (2203) 91  | 
|                                 | 54 0                | 
+---------------------------------+---------------------+ 
| Rudolf van Megen, Chief         |                     | 
| Executive Officer               |                     | 
+---------------------------------+---------------------+ 
| Rene Gawron, Chief Financial    |                     | 
| Officer                         |                     | 
+---------------------------------+---------------------+ 
|                                 |                     | 
+---------------------------------+---------------------+ 
| Altium                          | Tel. +44 (0)20 7484 | 
|                                 | 4040                | 
+---------------------------------+---------------------+ 
| Tim Richardson                  |                     | 
+---------------------------------+---------------------+ 
| Katie Hobbs                     |                     | 
+---------------------------------+---------------------+ 
|                                 |                     | 
+---------------------------------+---------------------+ 
| ICIS Limited                    | Tel. +44 (0)20 7651 | 
|                                 | 8688                | 
+---------------------------------+---------------------+ 
| Tom Moriarty                    |                     | 
+---------------------------------+---------------------+ 
| Bob Huxford                     |                     | 
+---------------------------------+---------------------+ 
 
 
 
 
About SQS 
 
 
SQS is the world's largest supplier in independent software testing and quality 
management services. SQS consultants design and oversee quality management 
processes during software and IT systems development and test the resulting 
products for errors and omissions. 
 
 
Headquartered in Cologne, Germany, SQS has approximately 1,400 employees across 
Europe, Asia, North America and Africa. The Group has a strong presence in 
Germany (Cologne, Munich, Frankfurt, Stuttgart, Goerlitz and Hamburg) and in the 
UK (London, Woking, Birmingham, Manchester, Belfast), Ireland, the Netherlands, 
Switzerland, Austria, Sweden, Norway, Finland, India, Egypt, the United States 
and South Africa. SQS also has a minor stake in an operation in Portugal and a 
partnership operation in Spain. 
 
 
 
With more than 5,000 completed projects, SQS has a strong customer base 
including 36 FTSE-100 companies, half of the DAX 30 and nearly a third of the 
STOXX-50. It supports clients in a wide range of industries, including major 
corporations such as Deutsche Bank, Deutsche Telekom, Deutsche Post, Barclays, 
Allianz, Meteor, BP, JP Morgan, Volkswagen, and Daimler. 
 
 
www.sqs-group.com 
 
 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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