8 February 2005
Intec Telecom Systems PLC
Unaudited results for the three months ended 31 December 2004
Good performance by Singl.eView acquisition drives 53% revenue increase; continuing cost management brings strong cashflow and earnings ahead of budget
Intec Telecom Systems PLC (“Intec” or “the Company”), a global provider of enterprise-level software and services, is pleased to announce its unaudited results for the three months ended 31 December 2004 (“Q1 2005”). A strong first reported quarter by Intec’s recent Singl.eView acquisition, indicating excellent progress in our ongoing turn around of this business, has increased revenues over the comparable period in 2004 by 53%. Good cost control, despite investment in the enlarged business, has delivered EBITDA earnings ahead of budget at £2.2 million and adjusted EPS of 0.28p.
In addition to these positive financial results, Intec is experiencing good momentum in new business wins and high levels of activity in current pipeline development, most notably several large, multi-product deals, each valued in excess of $10 million, in late stages of finalisation.
• Turnover of £23.9 million increased by 53% (3 months ended 31 December 2003 (“Q1 2004”): £15.6 million).
• Adjusted profit before tax of £1.2 million (Q1 2004: £1.6 million) after continued investment in acquisitions and business development.
• Adjusted EPS of 0.28p (Q1 2004: 0.58p).
• Operating cash inflow of £3.5 million (Q1 2004: outflow of £0.1 million).
• Recurring revenue up 50% to £11.4 million (Q1 2004: £7.6 million).
• Loss before tax of £3.1 million (Q1 2004: loss of £0.8 million), after depreciation and amortisation of goodwill and intangible assets of £5.2 million (Q1 2004: £2.9 million).
• Substantial increase in balance sheet strength with cash and cash equivalent investments of £34.2 million (Q1 2004: £13.8 million).
• Gross margin reduced to 61% (Q1 2004: 73%) due largely to short-term factors following the Singl.eView acquisition.
• Several important new contracts signed since the start of the financial year.
• Customer installations reach 678 in 471 operators, with over 1,000 staff now involved in development and delivery of solutions to customers.
“I am very pleased to report that the performance of the Singl.eView business has exceeded our expectations and, combined with another solid quarter from the core business, has allowed us to deliver both revenue and earnings ahead of our budgets,” said Intec’s Executive Chairman, Mike Frayne. “Our results for the first quarter of 2005, which for the first time include a full quarter’s contribution from the Singl.eView business acquired in August 2004, are not directly comparable to any previous period. However, the first quarter of the year can be the most unpredictable, and these results are therefore a very good foundation for the rest of 2005.”
“Our progress with Singl.eView is very pleasing, and the larger contracts we are now winning underline the strong opportunities we see ahead,” added Chief Executive Kevin Adams. “Execution across the business is in line with or exceeding our plans and the core business has not been distracted from its goals by the demands of taking on a major new line of activity. Our committed revenue forecast, prospect pipeline and activity levels for the rest of 2005 are also ahead compared to a year ago, and with a number of large, multi-product deals in progress we are confident that 2005 will be another successful year for Intec.”
For further information:
Mike Frayne, Executive Chairman
Kevin Adams, CEO
Andrew Rodaway, Director of Marketing
Intec Telecom Systems PLC
+44 (0) 1483 745800
+44 (0) 7768 808082
Edward Bridges/James Melville-Ross/Cass Helstrip
+44 (0) 20 7831 3113
This press release was distributed by ResponseSource Press Release Wire on behalf of Intec Telecom Systems in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.