GFT Technologies SE — Earnings Release 2009

Aug 13, 2009

News Details

Corporate | 13 August 2009 07:52

GFT holds its own in a demanding market environment closing the first half of the year with increased earnings

GFT Technologies AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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• Pre-tax earnings up slightly by EUR 0.03 million to EUR 2.28 million
• Services division provides the largest contribution to operating income
  (EUR 2.10 million)
• Consolidated revenue at EUR 107.48 million, seven per cent down on last
  year
• Earnings targets for 2009 confirmed and revenue forecasts adjusted to the
  market situation

Stuttgart, 13 August 2009 - The international IT company GFT Technologies
AG (GFT) has published its interim financial report as of 30 June 2009
today. 'Against the background of a still tense economic situation, we were
able to produce a satisfactory half-yearly balance: With almost stable
business development, we were also able to slightly increase our earnings
in the first six months of 2009,' says Ulrich Dietz, CEO of GFT. The GFT
Group achieved earnings before taxes (EBT) of EUR 2.28 million to 30 June
2009 (previous year: EUR 2.25 million). The consolidated revenue at EUR
107.48 million was slightly down on the same period of the previous year
(EUR 115.9 million).

Earnings: earnings slightly up despite noticeable pricing pressure

The earnings before taxes (EBT) of the GFT Group as of 30 June 2009 were
EUR 2.28 million, slightly up on the previous year's earnings of EUR 2.25
million. This is an increase of 25 per cent on the previous quarter. The
Services and Resourcing divisions continued to provide the best
contribution to operating income.
Despite noticeable pricing pressure and a still cautious demand, both
divisions contributed EUR 2.10 million and EUR 0.99 million respectively to
the half-yearly earnings. In the Software division, loss of earnings was
down on the previous year from EUR -1.65 million in 2008 to the current EUR
-0.40 million thanks to considerable cost-reduction measures at the
beginning of the year.

Revenue: development of revenue slightly down due to the tense economic
environment

The GFT Group achieved revenues of EUR 107.48 million in the first six
months of the 2009 financial year. This means overall revenue is down seven
per cent compared to EUR 115.90 million as of 30 June 2008. Revenue was
down three per cent compared to the first quarter to EUR 52.92 million.
The reduction was due essentially to a still tense economic environment and
the associated reluctance towards IT expenditure.
With revenue of EUR 43.32 million in the Services division, despite
hesitant demand in the financial services sector, it was almost possible to
maintain the figures from the previous year (EUR 44.17 million). In the
division where the highest revenue was achieved, Resourcing, which was
affected by the restrained demand for IT freelancers in all industries and
countries, revenue was down by 10 per cent to EUR 61.75 million (previous
year: EUR 68.9 million). Resource Management almost managed to achieve the
same revenue as last year. However, weaker revenue development was seen in
the low-margin area of Third Party Management. Revenue in the Software
division was down 15 per cent on the same period of the previous year to
EUR 2.42 million (previous year: EUR 2.83 million).

Further key data

On 30 June 2009, the net income for the first six months of EUR 1.6 million
was up EUR 0.5 million on the previous year of EUR 1.1 million. The
earnings per share were up in the period under review to EUR 0.06 compared
to EUR 0.04 for the same period of the previous year. Holdings of cash,
cash equivalents and securities were up to EUR 24.9 million (previous year:
EUR 18.1 million).
The GFT Group employed 1,022 staff at 30 June 2009 - 17 persons fewer than
the same period the previous year and five fewer than on 31 December 2008.

Target earnings for 2009 confirmed, revenue adjusted to the market
situation

'Our aim is to sustainably increase earnings. Despite the reduced revenue,
and after the positive development of earnings during the first six months
of 2009, we are still striving for pre-tax earnings of between EUR 6 and 8
million for the full financial year. As we are not expecting a distinct
stabilisation of the world economy until next year, we have reduced our
revenue forecast for 2009 to EUR 220 million. We have adjusted our cost
structure in good time and our range of services is well positioned
internationally. This enables us to hold our own in an economy that is
still weak and to quickly seize the opportunities in a recovering economic
environment,' says Ulrich Dietz, CEO of GFT.

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
142 Filderhauptstraße
70599 Stuttgart
T: +49 711 62042-440
F: +49 711 62042-301
andrea.wlcek@gft.com
www.gft.com

13.08.2009 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)711/62042-301
E-mail: Investor-Relations@gft.com
Internet: www.gft.com
ISIN: DE0005800601
WKN: 580060
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg

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