GFT Technologies SE — Earnings Release 2008

Aug 7, 2008

News Details

Corporate | 7 August 2008 08:05

GFT achieves increase in revenue despite difficult market environment

GFT Technologies AG / Half Year Results

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• Total consolidated revenue up by three per cent to € 115.9m compared to
  the previous year
• Resourcing division benefits from continued shortage of experts
• Earnings before taxes in the second quarter € 1.2m higher than in
  previous quarter

St. Georgen, 7 August 2008 – The IT company GFT Technologies AG increased
its revenue and earnings compared to the previous quarter despite the
continued financial market crisis. In the first half of 2008, the company
noted revenue growth of three per cent to € 115.9m. Earnings before taxes
came to € 2.3m.

Resourcing and Services continued to be the best-performing divisions of
the GFT Group in the first half of 2008. The growing demand for external IT
experts led to a growth in revenue of 12% to € 68.9m (prior year: € 61.5m)
in the Resourcing division. At € 44.2m, revenue in the Services division
lies € 4.8m below that of the same period of the previous year. The reason
for the decline is the restrained spending behaviour of clients from the
financial services sector. Initial successes with the sale of the software
product, inboxx, have been posted by the Software division. This sector
managed to achieve an increase in revenue by ten per cent to € 2.8m
compared to the same period in the previous year.

Earnings before taxes (EBT) came to € 2.3m in the first half of 2008 and
thus remained behind the previous year's value of € 5.3m. In the second
quarter the EBT increased by € 1.2m compared to the first quarter.
Significant investments by the Software division to market the new product
series inboxx became clear in the overall earnings. In addition to the
current restraint of banks and insurance companies when it comes to new
investments, the sale of majority stakes in the Indian subsidiary GFT India
Ltd. also encumbered the half-year earnings.

The net income as at 30 June 2008, with € 1.1m, was below the previous
year’s value (€ 3.3m). During the reporting period, earnings per share came
to € 0.04 compared to € 0.13 for the same period in the previous year and €
0.01 in the first quarter. The funds available for payment (including
securities) declined slightly year-on-year (€ 21.6m) to € 18.1m.

As at 30 June 2008, the GFT Group employed 1,039 people – 48 fewer than at
the end of 2007 and twelve fewer than 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, as 47 people were employed there last
year. The Resourcing division noted an increase in employees of 27 people,
reflecting the growing demand for external IT experts.

'The continued increase in demand for IT specialists offers us promising
growth opportunities in the Resourcing division throughout the second half
of 2008,' commented Ulrich Dietz, CEO of GFT Technologies AG. 'At the same
time we are working intensively on increasing revenue in the Services
division through new, attractive project offerings for international
clients. In the Software division, we have an outstanding solution offer
with our product series inboxx, supporting our clients in complying with
legal archiving obligations. We will continue to steadily expand sales and
we are expecting revenues to rise and an increase in earnings for the
second half of the year.'

On the basis of the global economic downturn and the unpredictable impact
of the crisis in the financial market, the Executive Board is expecting a
moderate increase in revenue for the current financial year compared to the
previous year (2007: € 247.1m). In terms of the operating earnings before
taxes, the GFT Group is striving to exceed the threshold of a double-digit
million value, but considers this to be a challenge given the current
market environment.

The Interim Financial Report of the GFT Group is available online at
http://www.gft.com/ir.

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

07.08.2008 Financial News transmitted by DGAP

Language: English
Issuer: GFT Technologies AG
Leopoldstraße 1
78112 St. Georgen/Schwarzwald
Deutschland
Phone: +49 (0)7724 / 9411-0
Fax: +49 (0)7724 / 9411-883
E-mail: ir@gft.de
Internet: www.gft.de
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

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