SQS Software Quality Systems AG Business Update (5661K)
June 26 2014 - 2:00AM
UK Regulatory
TIDMSQS
RNS Number : 5661K
SQS Software Quality Systems AG
26 June 2014
26 June 2014
SQS Software Quality Systems AG
("SQS" or the "Company")
Business Update
New Contracts and Contract Extensions worth approximately EUR60
million
SQS Software Quality Systems AG (AIM: SQS.L), the world's
largest supplier of independent software testing and quality
management services, announces a number of new contract wins and
contract extensions together worth approximately EUR60 million
during the next three years.
SQS continues to experience solid growth within its target
sectors and across the majority of geographies in which it provides
its services. This is highlighted by the following new contract
awards and contract extensions:
-- A two year extension with a global, European headquartered
bank worth more than EUR30 million. As well as the continuing
provision of services supplied as part of the initial managed
services contract, the extension will include a number of smaller
service engagements in Asia and the US. These smaller engagements
will be serviced by consultants from our recently consolidated
Thinksoft acquisition which has greatly expanded our presence in
these geographies;
-- A managed services contract extension worth EUR15 million
with a major European telecommunications provider. This is for a
further three years' provision of software testing for the client's
billing application;
-- A new managed services contract with a major European bank
initially worth EUR10 million, comprising the testing of the
client's digital strategy applications until the end of 2015. SQS
was previously engaged in providing specialist testing to this
client as part of a large regional project. However, this has now
developed into an international managed services contract, with the
international element being delivered by Thinksoft specialists;
-- A new contract with a UK utility services provider worth
EUR3.7m. This is a managed services contract of which a significant
proportion of the service delivery will be provided from offshore
resources;
-- A new specialist consulting contract with a leading Central
and Eastern European insurance group. SQS has been engaged owing to
its specific domain and application experience in the insurance
field; and
-- A number of new contracts with major US car and car parts
producers. These engagements are of strategic importance to the
Company's continued growth in the US manufacturing industry.
Diederik Vos, CEO of SQS, commented: "I am delighted to announce
these order intakes that came in at the back end of our first half.
They demonstrate clear progress in deploying our strategy of
focusing on servicing larger, long term contracts. This strategy is
resulting in improved revenue visibility and, with a number of
these contracts being of a managed services nature, increasing the
offshore element of our service delivery.
Our recent acquisition of Thinksoft has also been instrumental
in enabling us to secure or enhance the value of a number of these
contracts. Thinksoft has strengthened our offshore capabilities,
deepened our expertise in the financial services sector and
expanded our international reach, particularly in the US.
As we continue to build scale we hope to be able to secure ever
larger contracts going forward and we are confident of announcing
further successes in the future."
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
Walbrook PR Limited Tel. +44 (0)20 7933 8780
Bob Huxford bob.huxford@walbrookpr.com
Helen Cresswell helen.cresswell@walbrookpr.com
About SQS
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, offshore automation processes and deep
domain knowledge in various industries. Headquartered in Cologne,
Germany, the company now employs approximately 3,900 staff (incl.
Thinksoft). SQS (incl. Thinksoft) has offices in Germany, the UK,
Australia, Egypt, Finland, France, India, Ireland, Malaysia, the
Netherlands, Norway, Austria, Singapore, Sweden, Switzerland, South
Africa, UAE and the US. In addition, SQS maintains a minority stake
in a company in Portugal. In 2013, SQS generated revenues of 225.8
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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