TIDMSQS
RNS Number : 8035V
SQS Software Quality Systems AG
18 December 2013
18 December 2013
SQS Software Quality Systems AG
("SQS" or the "Company")
Trading Update
SQS Software Quality Systems AG (AIM: SQS), the world's largest
supplier of independent software testing and quality management
services, is pleased to provide an update on trading and to
announce a number of contract wins and extensions.
SQS is currently trading in line with management's expectations
and is experiencing growth in the majority of the geographies in
which it is present. Preparation for the integration of our recent
acquisition, Thinksoft (the "Acquisition"), is progressing in line
with our plans and SQS remains confident that it will benefit
significantly from the increased global scale and global delivery
capabilities that the combined businesses will be able to offer. It
is anticipated that the first closing of the Acquisition, whereby
SQS will replace the founders of Thinksoft as "Promoters" (as the
term is understood under Indian securities regulations), will occur
within 2 weeks and that the tender offer for the remaining
Thinksoft shares to be acquired will commence on 31 December
2013.
Managed Services
SQS has been awarded several significant Managed Services
contracts and contract extensions worth a combined total of EUR63.5
million, plus further contract wins in the US and other
geographies. In the Banking sector, SQS has agreed a contract
extension until 2014 with a tier-1 Swiss bank worth a further CHF
10.5m (EUR8.5m). The Company has also signed a contract with a
global German bank utilising over 100 consultants both onsite and
within its near-shore operations and, with another global German
banking client, it has extended a contract for a further three
years. The Managed Services order intake for the current year now
stands at EUR 112.5 million.
In Germany, the Company has also engaged in a three year
contract with an international automobile designer and manufacturer
to provide mobile online services testing / connected car
application testing and blended onsite and offshore Managed
Services.
Further progress in North America
In the US, at present SQS' region with the highest revenue
growth rates, the Company has contracted for the first time with a
global US automotive company and a leading car parts manufacturer
to provide Test Automation Services. Both of these contracts have a
high potential to develop into future Managed Services
engagements.
Also in the US, in the High Tech sector, SQS has signed a
contract with a leading semiconductor and flat panel display
manufacturer. This is to provide onsite services and an offshore
Test Automation Factory and, in the Gaming & Gambling sector,
the Company has signed a contract to provide offshore computer
games testing services to a global media organisation headquartered
in the US.
Other
In other regions and verticals, SQS has engaged with one of the
UK's leading retail companies to provide testing across its online
and mobile platforms. It has also engaged in a Test Data Management
contract for the e-commerce and mobile platform for one of the
world's largest furniture and home furnishings retailers.
Diederik Vos, CEO of SQS, commented: "2013 has been a year of
significant progress for SQS. The proposed acquisition of Thinksoft
will increase our scale and significantly strengthen our offshore
capabilities and the plans for integration of Thinksoft are
progressing smoothly.
"In addition, we are very pleased to report that we continue to
trade in line with management expectations. Recent contract wins
and contract extensions clearly demonstrate our success in
delivering against our stated strategy of focusing on larger
contract engagements within the six key verticals in which we have
most expertise, particularly in Managed Services. We are currently
experiencing growth in the majority of geographies in which we
operate and our rapidly increasing penetration of the mobile
applications market and substantial US market is particularly
encouraging. As we continue to build scale, we see greater
potential to compete for larger contracts and we are confident of
continued success going forward."
Enquiries:
SQS Software Quality Systems AG Tel. +49 (2203) 91 54 0
Diederik Vos, Chief Executive Officer
Rene Gawron, Chief Financial Officer
Canaccord Genuity - Nomad and Joint Tel +44 (0) 20 7523 8000
Broker
Simon Bridges / Peter Stewart / Cameron
Duncan
Westhouse Securities - Joint Broker Tel. +44 (0)20 7601 6100
Robert Finlay / Antonio Bossi / Paul
Gillam
Walbrook PR Limited Tel. +44 (0)20 7933 8780
Bob Huxford bob.huxford@walbrookpr.com
Helen Cresswell helen.cresswell@walbrookpr.com
About SQS Software Quality Systems
SQS is the world's leading specialist in software quality. This
position stems from over 30 years of successful consultancy
operations. SQS consultants provide solutions for all aspects of
quality throughout the whole software product lifecycle driven by a
standardised methodology, high offshore automation processes and
deep domain knowledge in various industries. Headquartered in
Cologne, Germany, the company employs approximately 2,800 staff.
SQS has offices in Germany, the UK, Egypt, Finland, France, India,
Ireland, the Netherlands, Norway, Austria, Sweden, Switzerland,
South Africa and the US. In addition, SQS maintains a minority
stake in a company in Portugal. In 2012, SQS generated revenues of
210.1 million Euros.
SQS is the first German company to have a primary listing on the
AIM (Alternative Investment Market) in London. In addition, SQS
shares are also traded on the German Stock Exchange in Frankfurt am
Main.
With over 7,000 completed projects under its belt, SQS has a
strong client base, including half of the DAX 30, nearly a third of
the STOXX 50 and 20 per cent of the FTSE 100 companies. These
include, among others, Allianz, Beazley, BP, Centrica, Commerzbank,
Daimler, Deutsche Post, Generali, JP Morgan, Meteor, Reuters, UBS
and Volkswagen as well as other companies from the six key
industries of SQS.
For more information, see www.sqs.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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