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Ad hoc: PC-WARE Information Technologies AG: PC-WARE Q.I 2009/10: Weak market prompts downturn in bu

ID: 1003513
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(Thomson Reuters ONE) - PC-WARE Information Technologies AG / Quarterly report / Ad hoc: PC-WARE Q.I 2009/10: Weak market prompts downturn in business Ad hoc announcement according to §15 WpHG processed and transmitted by Hugin. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------- Revenue: ?216.4 million (-6.3% y.o.y.)- Gross profit: ?30.2 million (-9.7% y.o.y.)- EBITDA: ?-4.7 million (?-8.7 million y.o.y.)- EBIT: ?-7.3 million (?-10.0 million y.o.y.)- EBT: ?-7.4 million (?-10.0 million y.o.y.)- Profit for the period: ?-6.6 million (?-8.4 million y.o.y.)Leipzig, 24 August 2009 - The ICT solutions provider PC-WARE had tocontend with a fall in revenue by 6.3% to ?216.4 million in the firstquarter. In parallel, however, the company recorded an increase inthe volume of Enterprise Agreements (agreements concluded directlybetween Microsoft and the customer), as a result of which the overallvolume of business rose by 4.7% to ?336.4 million.The Volume Business segment encompasses PC-WARE's core businesscentred around software licensing as well as hardware reselling.Owing to the shift within the area of software licensing towardsdirect Enterprise Agreements, coupled with difficult marketconditions in the hardware subsegment, revenue generated in thissegment declined by 6.1% to ?181.5 million.The Value Business segment recorded a contraction of revenue by 7.6%to ?34.9 million.Alongside the second core area, services relating to data centres aswell as high-end IT consulting, this segment includes businessactivities such as Software Asset Management, Business Intelligence,Multi-Vendor HelpDesk and Learning Services.Foreign sales as a proportion of total sales revenue increased to61.3% in the first quarter (Q.I 2008/09: 56.7%), a trend that isattributable to the decline in business at the company's German-basedenterprises, as well as the significant growth achieved by some ofits foreign subsidiaries.Gross profit fell by 9.7% in the first quarter, i.e. at a faster ratethan revenue, and stood at ?30.2 million. The year-on-year declinewas driven by two factors: downward pressure on margins within thearea of volume software as well as hardware business, together with areduction in work performed by the enterprise and capitalised.Performance in terms of EBITDA was adversely affected by the declinein gross profit and a further increase in staff costs (+23.1% to?27.5 million), as a result of which EBITDA fell by ?8.7 million to?-4.7 million. The significant rise in staff costs was the result ofhigher staffing levels as well as severance payments made to theformer members of the Management Board.The factors outlined above also had a bearing on pre-tax profit.Impacted only marginally by the slight deterioration in net financecosts (?-71 thousand; Q.I 2008/09: ?-43 thousand), it stood at ?-7.4million at the end of the first quarter.Profit for the period (after minority interests) stood at ?-6.6million, down ?8.4 million on the figure posted for the same period ayear ago. The tax rate was impacted primarily by the reversal ofdeferred tax assets relating to the carryforward of losses. Thelatter was due to an assessment of the ability to use losscarryforwards given the difficult economic climate.In view of the seasonality of PC-WARE's business, the ManagementBoard does not anticipate any significant forward momentum in thesecond quarter as regards the company's overall performance for thefirst half. By concentrating on its core competences, the companywill be looking to further strengthen its position in the area ofsoftware licensing as well as consulting. Given the prevailingeconomic uncertainties and imminent readjustments to several areas ofour business, the company has decided against issuing an earningsforecast for the financial period as a whole. However, the ManagementBoard is of the opinion that the company can fully exploit theopportunities presented to PC-WARE in the medium term even if thecurrent economic challenges persist.The full report for the first quarter is available at the company'swebsite at ("Reports" section).Contact:Investor RelationsDr. Ingmar AckermannPC-Ware Information Technologies AGBlochstrasse 1 04329 LeipzigTel. +49 (0)341 25 68-148ir(at)pc-ware.deWKN: 691090; ISIN: DE0006910904; Index: CDAX, Prime All Share, TECHAll Share, GEX; Listed: Regulated Market of the Frankfurt SecuritiesExchange, Prime Standard of the Frankfurt Securities Exchange,Regulated Unofficial Market (Freiverkehr) of the Berlin BremenExchange, Regulated Unofficial Market (Freiverkehr) of the DüsseldorfExchange, Regulated Unofficial Market (Freiverkehr) of the StockExchange of Lower Saxony Hanover, Regulated Unofficial Market(Freiverkehr) of the Stuttgart Exchange; --- End of Message ---PC-WARE Information Technologies AGBlochstr. 1 Leipzig GermanyWKN: 691090; ISIN: DE0006910904; Index: CDAX, Prime All Share, TECH All Share, GEX;Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Bayerische Börse München, Open Market in Frankfurter Wertpapierbörse, Regulierter Markt in Frankfurter Wertpapierbörse;

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Date: 08/24/2009 - 08:54
Language: English
News-ID 1003513
Character count: 0
Firma: PC-WARE Information Technologies AG
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Stadt: London


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