Trading Update (4611Z)
January 14 2011 - 2:00AM
UK Regulatory
TIDMSQS
RNS Number : 4611Z
SQS Software Quality Systems AG
14 January 2011
14 January 2011
SQS Software Quality Systems AG
("SQS" or the "Company")
Trading Update
SQS Software Quality Systems AG (AIM: SQS.L), the world's
largest pure play supplier of independent software testing and
quality management services, is pleased to provide an update on
trading for the year ended 31 December 2010.
Following the material investments made in increasing headcount
and growing our managed services business in the first half of
2010, the Company is pleased to report significant improvements in
profitability in the second half of the year. Despite continued
competitive pricing pressure and the deferral of EUR0.5m of
budgeted high margin software sales into 2011, adjusted profit
before taxation for the year is expected to be broadly in line with
consensus estimates.
The Company expects to report revenues for the year to 31
December 2010 ahead of consensus, principally due to success in
winning contracts within the Managed Services business. As has been
previously highlighted such contracts, which provide enhanced
longer term visibility, tend to generate relatively low margins in
their early stages.
Whilst we saw increasing demand for our services across all our
core geographies during the year, our businesses in Germany and the
United Kingdom were the main contributors to growth.
Rudolf van Megen, Chief Executive Officer of SQS commented,
"During 2010 we have made significant steps forward in growing the
Company and increasing our market share and we are delighted that
the investments made in the first half have borne fruit. It has
been our stated strategy to focus on expanding our Managed Services
business and we are especially encouraged by its performance. Our
Managed Services contract wins during the period give us confidence
in improved visibility, margins and profitability in the medium to
long term."
The management of SQS will be hosting a conference call for
analysts at 9.00 am today. If you require dial-in details please
contact Bob Huxford on 020 7933 8783.
SQS will be announcing its preliminary results for the year
ended 31 December 2010 on 9 March 2011.
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
Walbrook PR Limited Tel. +44 (0)20 7933 8783
Bob Huxford
Jack Rich
About SQS
SQS is the world's largest pure play supplier of independent
software testing and quality management services. SQS consultants
design and oversee quality management processes during the software
and IT systems life cycle and test the resulting products for
errors and omissions.
Headquartered in Cologne, Germany, SQS has approximately 1,900
employees across Europe, Asia, North America and Africa. The Group
has a presence in Germany (Cologne, Munich, Frankfurt, Stuttgart,
Goerlitz and Hamburg) 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 35 FTSE-100 companies, more than half of
the DAX 30 and a third of the STOXX-50. It supports clients in a
wide range of industries including major corporations such as
Allianz, Beazley, BP, Centrica, Commerzbank, Daimler, Deutsche
Post, Generali, JP Morgan, Meteor, Reuters and Volkswagen.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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