GFT Technologies SE — Earnings Release 2008

Nov 6, 2008

News Details

Corporate | 6 November 2008 08:19

GFT publishes results for the first nine months of 2008

GFT Technologies AG / Quarter Results

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 Stable revenue development despite financial market crisis
 Revenue in the Resourcing division grew by ten per cent
 Earnings before taxes (EBT) depressed by Software division
 Forecast reduced for the 2008 financial year.

Stuttgart, 6 November 2008 – The IT company GFT Technologies AG achieved
stable revenue development despite the current turbulence in the financial
markets. In the first nine months GFT generated revenues of €177.5m
(previous year: €176.3m). The earnings before taxes came to €4.3m. and were
therefore lower than expected. The revenue and income targets for the 2008
financial year were reduced.

The Resourcing division generated the largest revenue contribution during
the first nine months of 2008. As a result of the continuing demand for
freelance IT specialists, revenue here could be increased by ten per cent
to €106.3m (previous year: €97.1m). The escalation of the crisis in the
financial markets and the associated global economic downturn was reflected
in subdued demand across all industries: in the Services division revenues
fell during the first nine months of 2008 by 11 per cent to €67.2m
(previous year: €75.2m). In the Software division revenue fell by two per
cent to €4.0m (previous year: €4.1m).

The consolidated earnings before taxes (EBT) of the GFT Group on 30
September 2008 were €4.3m and consequently €4.4m below the previous year’s
figure. The Services division made the largest contribution to income with
€5.0m while the Resourcing division achieved nine-month earnings of €2.6m.
The Software segment by contrast had a negative effect on earnings with -
€2.8m. In a quarterly comparison it rose relative to the second quarter of
2008 (€1.7m) by 24 per cent to €2.1m.

Net income on 30 September 2008 at €2.6m was below the previous year’s
figure (€5.7m). Earnings per share during the reporting period were €0.10
after €0.22 year on year and €0.04 at mid-year. The funds available for
payment fell by 21% year-on-year from €22.8m to €17.9m.

As of 30 September 2008, the GFT Group employed 1,015 employees – 72 fewer
than at the end of 2007 and 62 fewer than at the same period in the
previous year. The reduction in the number of employees is mainly due to
the sale of shares in the Indian subsidiary. In the previous year, 56
employees worked there. The Resourcing segment noted an increase in
employees: 22 more persons than at the same time in the previous year were
employed here. This reflects the ongoing demand for external IT experts in
companies.

Against this backdrop the Executive Board has lowered its forecasts for the
entire year. For the current year, GFT expects group level revenues of
€240m and earnings before taxes (EBT) of €6m.

'Despite the crisis on the financial markets, we are optimistic about the
future,' explained Ulrich Dietz, CEO of GFT, although he expects a recovery
of the market not before the second half of 2009. He continued, 'once the
banks have overcome the crisis, they will have to implement the tighter
regulations currently under discussion. Today we are already working on the
corresponding IT solutions to provide our customers with intensive support
in this area.'

The Interim Financial Report of the GFT Group is also available on the
internet: http://www.gft.com/ir.

Andrea Wlcek
Head of Corporate Communications and Investor Relations
GFT Technologies AG
Filderhauptstrasse 142
70599 Stuttgart
Germany
T +49 711 62042-440
F +49 711 62042-301
andrea.wlcek@gft.com
www.gft.com

06.11.2008 Financial News transmitted by DGAP

Language: English
Issuer: GFT Technologies AG
Filderhauptstr. 142
70599 Stuttgart
Deutschland
Phone: +49 (0)711/62042-0
Fax: +49 (0)711/62042-101
E-mail: Investor-Relations@gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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