Earnings Release • Mar 18, 2010
Earnings Release
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| 2008* | |
|---|---|
| 126,187 | |
| 3,323 | |
| -1,256 | |
| -10,225 | |
| -8,158 | |
| -9,032 | -22,495 |
| -0.09 | -0.21 |
| 2009* 117,201 944 -2,158 -2,043 -3,256 |
* Continued operations
"Although Qurius has a very strong European position within the Microsoft market for business software, awareness of that fact within the market place is not great. Name and brand recognition are not at all commensurate with the prestigious projects undertaken by the company, both in the past and currently.
Since my start in January 2010, I have been working on building a strong operation with which we can move forward into the future. We have been focusing on minimizing overhead costs in the various countries, and in addition we have strengthened our management, both financial and operational. This relatively small but important restructuring operation has been the focus of our attention during the first quarter of 2010.
Over the coming period restructuring work will continue, implementing strong financial and operational mechanisms. Besides improving operations in all countries in which we are active, we will put a considerable effort in loading our brand, so raising the company's reputation as a strong player in the market for ERP.
Most importantly, however, is our effort to create a strong Vision Document, which will be supported by our complete team of international management. This Vision Document will be presented at our Annual Meeting of Shareholders and will play an important role in the years to come."
| By category | 2009* | 2008* | % Change |
|---|---|---|---|
| Licenses | 13,042 | 17,590 | -25.9% |
| Maintenance | 19,111 | 21,857 | -12.6% |
| Services | 74,691 | 75,693 | -1.3% |
| Hardware | 10,357 | 11,047 | -6.2% |
| 117,201 | 126,187 | -7.1% |
* Continued operations
| By country | 2009* | 2008* | % Change |
|---|---|---|---|
| Germany | 31,179 | 29,669 | 5.1% |
| Netherlands | 58,080 | 63,088 | -7.9% |
| Spain | 14,248 | 15,717 | -9.3% |
| Other | 13,694 | 17,713 | -22.7% |
| 117,201 | 126,187 | -7.1% |
* Continued operations
Total revenue fell in 2009 by an amount of EUR 9.0 million, or 7.1%. New license revenue suffered from adverse market conditions in all countries. Most affected were the Netherlands (EUR -2.0 million), Spain (EUR -1.2 million) and the UK (EUR -0.7 million).
Germany realized an increase in revenue of EUR 1.0 million as a result of a increase in service revenue. The decrease in the category of Other is mainly due to the UK operation which suffered from a lack of license sales (EUR -0.7 million) as well as a fall in revenue from Services (EUR -0.6 million).
| 2009* | 2008* | |
|---|---|---|
| Germany | -886 | -173 |
| Netherlands | 3,585 | 3,432 |
| Spain | -1,247 | -275 |
| Other | -508 | 339 |
| 944 | 3,323 |
* Continued operations
Excluding non-recurring restructuring costs and impairment charges, the recurring EBIT margin realized in 2009 amounted to EUR 0.9 million (2008: EUR 3.3 million).
The recurring EBIT in Germany suffered from an increase in the provision of bad debt amounting to EUR 0.3 million as a result of adverse market conditions. Furthermore, following restructuring measures during the year 2009, the cost base for the full year fell by an amount of approximately EUR 1.0 million.
In the Netherlands, the effect of cost reduction measures compensated for a fall in gross margin, resulting in a slight increase in EBIT.
In Spain, Qurius was confronted with significantly weaker customer payment behavior, resulting in additional provisions for bad debt.
As a result of the various cost reduction programs put in place, employee costs were EUR 3.2 million (5%) lower than in 2008.
Non-recurring restructuring costs impacted EBIT to an amount of EUR 2.2 million (2008: EUR 1.3 million). These costs, which were incurred in operational restructuring in all countries, comprised EUR 1.7 million in one-off severance payments for rightsizing the respective operations and management replacements, and EUR 0.5 million for closing offices and related costs.
Due to changing long-term growth rates and their effect on expected operational results, Qurius has taken an impairment charge of EUR 2.0 million on the carrying value of our Spanish operation.
Lower than expected earnings have resulted in a derecognition of part of the Deferred Tax Assets. This charge amounts to EUR 1.1 million and has been accounted for in the tax line in the Profit and Loss account.
For the current year result, Qurius has not recognized deferred income tax amounting to EUR 1.7 million. Due to the combination of available tax losses and a time horizon of 5 years, we do not expect that we will be able to compensate for the current year's losses.
On 31 December 2009, our net debt position (long-term debt minus cash at hand) amounted to EUR 5.6 million (2008: EUR 16.1 million), and our long-term debt amounted to EUR 13.5 million (2008: 17.5 million). New debt covenants have been agreed between Qurius and NIBC.
| FTE as at 31 December | 2009* | 2008* |
|---|---|---|
| Germany | 198 | 216 |
| Netherlands | 393 | 402 |
| Spain | 148 | 160 |
| Other countries | 143 | 143 |
| 890 | 921 |
* Continued operations
On 31 December 2009, Qurius employed 882 FTEs (2008: 921 FTEs). The total number of employees decreased throughout 2009.
Qurius will publish its digital 2009 annual report on 12 April 2010 and its first quarter results on 28 April 2010. The Annual General Meeting of Shareholders will take place on 29 April, at 10.00 a.m. in NH Utrecht Hotel. Under the current practice rules of chartered accountants, the company reports that the annual results have not been audited. Consultations with the auditor give no reason to expect material changes.
End of press release
Qurius provides architecture, realization and systems management of Microsoft technology based business and IT solutions, including infrastructures. Qurius has around 900 staff members; its headquarters are located in Zaltbommel, the Netherlands. Its offices in Belgium, Germany and Austria, Italy, the Netherlands, Spain, the United Kingdom and its near-shore development centre in the Czech Republic serve over 2,800 clients. Qurius has been publicly listed on Euronext Amsterdam since 1998 and is included in the AScX-index. Currently, Qurius has 108,030,023 listed shares. For more information, visit www.qurius.com.
Qurius, Suzanne Schaapman, Investor Relations Manager: tel. +31 (0)418 683 500 or [email protected]
| (in EUR x 1,000, except for percentages) | 2009 | 2008 | Change |
|---|---|---|---|
| Net sales | 117,201 | 126,187 | -7.1% |
| Cost of sales | -38,628 | -42,179 | -8.4% |
| Gross margin | 78,573 | 84,008 | -6.5% |
| (as % of net sales) | 67.0% | 66.6% | |
| Cost of personnel | 62,849 | 67,039 | -6.3% |
| Other operating expenses | 10,426 | 10,632 | -1.9% |
| Operating expenses | -73,275 | -77,671 | -5.7% |
| EBITDA | 5,298 | 6,337 | -16.4% |
| (as % of net sales) | 4.5% | 5.0% | |
| Depreciation and amortization | -4,354 | -3,014 | 44.5% |
| EBIT (exc. restructuring and impairment | 944 | 3,323 | -71.6% |
| charges) | |||
| (as % of net sales) | 0.8% | 2.6% | |
| Restructuring costs | -2,157 | -1,256 | |
| Amortization of goodwill | -2,043 | -10,225 | |
| EBIT | -3,256 | -8,158 | 60.1% |
| Financial income and expenses | -2,064 | -1,326 | -55,7% |
| Result before taxation | -5,320 | -9,484 | 43.9% |
| 3.5% | |||
| Taxation Third party interest |
-1,961 -53 |
-2,032 -39 |
-35.9% |
| Result discontinued operations | -1,702 | -10,940 | 84.4% |
| Net result | -9,036 | -22,495 | 59.8% |
| -7.7% | -17.8% | ||
| (as % of net sales) |
| (in EUR x 1,000) | 31 December 2009 | 31 December 2008 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Fixed assets | ||||
| Intangible fixed assets | 41,874 | 48,448 | ||
| Tangible fixed assets | 4,382 | 5,385 | ||
| Financial fixed assets | 3,669 | 6,047 | ||
| 49,925 | 59,880 | |||
| Current assets | ||||
| Receivables | 35,995 | 54,943 | ||
| Liquid funds | 9,591 | 3,759 | ||
| 45,586 | 58,702 | |||
| TOTAL ASSETS | 95,511 | 118,582 | ||
| EQUITY AND LIABILITIES | ||||
| Group equity | ||||
| Group equity | 40,661 | 48,547 | ||
| Third-party interests | 131 | 144 | ||
| Group equity | 40,792 | 48,691 | ||
| Provisions | 2,079 | 2,005 | ||
| Long-term liabilities | 2,500 | 5,480 | ||
| Current liabilities | 50,140 | 62,406 | ||
| TOTAL EQUITY AND LIABILITIES | 95,511 | 118,582 | ||
| (in EUR x 1,000) | 2009 | 2008 |
|---|---|---|
| Cash flow from operating activities | 11,009 | -788 |
| Cash flow from investment activities | -479 | -6,057 |
| Cash flow from financing activities | -4,698 | 6,229 |
| 5,832 | -616 |
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