Regulatory Announcement
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SQS Software Quality Systems AG
Trading update
28 November 2007
SQS Software Quality Systems AG (‘SQS’ AIM: SQS), the global leader in independent software testing and quality management services, announces the following trading update for the year ending 31 December 2007.
The Board is pleased to report healthy growth across all geographies and continuing strong market demand with all market verticals performing well. Revenues and profits are both expected to be modestly ahead of current market expectations.
SQS continued to strengthen its client base and improve its revenues from repeat business. During the third quarter (July-Sep), SQS won 43 new clients across all key geographies. Importantly, these new clients are spread across ten market verticals including insurance, technology and automotive/industrial. In September SQS was pleased to announce its largest ever contract (€2.5 million) with a telecommunications provider. Year on year, SQS has secured an increasing number of long term contracts and the percentage of SQS contracts involving significant offshore delivery components is now at its highest rate.
On 20 August 2007, SQS announced the acquisition of Triton, the Austrian IT consultancy services company for the insurance industry, for a total maximum consideration of €15.5 million. As anticipated the acquisition has enhanced SQS’s ‘Management Consulting’ practice and led to a number of cross-selling opportunities. The acquisition has also been earnings enhancing.
There are continued high levels of utilisation and an increased number of consultants. SQS has increased its total headcount to meet the growing market demand for independent software testing and quality management from 733 at the 2006 year end to 1003 in November 2007.
SQS invites you to an analyst and investor seminar to be held today at 12.30pm at College Hill Associates, The Registry, Royal Mint Court, London, EC3N 4QN. The presentation will cover the trading update, SQS strategy and customer case studies.
Enquiries:
| SQS Software Quality Systems AG | ||
| Rudolf van Megen, CEO Rene Gawron, CFO |
+49 (22 03) 91 54 0 | |
| Altium | ||
| Nick Tulloch | +44 (0) 20 7484 4040 | |
| College Hill Associates Ltd | ||
| Sara Musgrave Ben Way |
+44 (0) 20 7457 2020 | |
Print resolution images are available for the media to view and download from www.vismedia.co.uk.
Notes to Editors:
SQS is the global leader in independent software testing and quality management services having most of its business in Europe. 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 now has more than 1000 employees across Europe and in South Africa. The Group has a strong presence in Germany (Cologne, Munich, Frankfurt, Stuttgart and Hamburg) and in the UK (London, Woking, Birmingham, Manchester, Belfast), Ireland, Netherlands, Switzerland, Austria and South Africa. SQS also has a minor stake in an operation in Portugal and a partnership operation in Spain.
With more than 4,000 completed projects under its belt, 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 Zurich Group, Deutsche Telekom, Barclays, BP, Boots, Credit Suisse, Volkswagen, and Daimler.
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