GFT Technologies SE — Earnings Release 2008

May 8, 2008

News Details

Corporate | 8 May 2008 08:03

GFT gets off to a positive start in the 2008 financial year

GFT Technologies AG / Quarter Results

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• Group revenue rises to € 55.4m compared to previous year’s figures
• Distinct increase in revenue in the Resourcing segment
• Earnings before taxes (EBT) fall to € 0.5m owing to special circumstances
• Revenue and income targets for the year confirmed

St. Georgen, 8 May 2008 – In 2008, the international IT services provider
GFT Technologies AG got the new financial year off to a positive start. In
the first quarter of 2008, the company increased its revenue by three
percent to € 55.4m, posting earnings before taxes (EBT) totalling € 0.5m.
The revenue and income targets for the year 2008 were confirmed.

In a macroeconomic environment, marred by the crisis on the financial
markets, the revenues and earnings of the GFT Group developed according to
plan. Compared to the same period last year, revenue increased by three
percent to € 55.4m.

The increasing shortage of skilled IT workers and the resulting rising
demand for freelance experts had a positive impact on the development of
revenue in the Resourcing segment in the first quarter. During the
reporting period, revenue rose by 15 percent and totalled € 33.4m (previous
year: € 28.9m). At € 20.6m, revenue in the Services segment was below the
previous year's figure of € 23.5m. This is essentially attributable to the
crisis in the financial markets and the resulting hesitancy on the part of
banking customers to invest in new IT solutions. At € 1.5m, revenue in the
Software segment increased by seven percent in the first three months of
2008 (previous year: € 1.4m), reflecting the increasing success of the
e-mail archiving solution inboxx.

In the first quarter of 2008, earnings before taxes (EBT) fell year-on-year
from € 2.2m to € 0.5m owing to a number of special circumstances. The sale
of the majority stake in the Indian subsidiary GFT India Limited on 29
February 2008 had a negative effect on earnings, as did the on schedule
completion at the end of 2007 of the high-yield implementation phase of a
major project in Brazil. At the same time, significant investments in sales
and marketing relating to the launch of the e-mail archiving solution
inboxx had an impact on earnings.

As of 31 March 2008, net profit for the year was below the previous
quarter's figures (€ 1.3m) at € 0.1m. The earnings per share fell during
the reporting period by € 0.04 to € 0.01. The funds available remained
virtually unchanged compared to the same period last year (€ 20.6m) and as
of 31 March 2008 totalled € 20.7m.

As of the end of the first quarter, the GFT Group employed a workforce of
1,045 – 42 fewer employees than at the end of the year 2007 and 26 fewer
employees than in the same period the previous year. The decline in the
number of employees is essentially due to the deconsolidation of the Indian
subsidiary. At the end of the year, the Indian location had a workforce of
55. At the same time, GFT succeeded in gaining new, highly-qualified
employees for its German locations thanks to successful recruitment
measures.

'With the aid of specific investments, we are currently pressing ahead with
expansion into new markets. We aim to make rapid progress with the
establishment of our successful Resourcing business model in the Eastern
European market,' explained Ulrich Dietz, CEO of GFT Technologies AG.
'Following the market launch of the e-mail archiving solution inboxx, we
anticipate rising revenues in the Software division during the course of
the year. Based on the current order situation, we also expect the
willingness to invest from clients in the financial sector to improve in
the Services division and therefore expect an associated rise in revenue
during the second half of 2008'.

Based on current business development, the Executive Board is able to
confirm its revenue forecast of between € 250m and € 270m with an operating
EBT of between € 12.5m and € 13.5m for the financial year 2008.

The Quarterly 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

08.05.2008 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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