GFT Technologies SE — Earnings Release 2010

May 11, 2010

News Details

Corporate | 11 May 2010 07:33

GFT Technologies AG: GFT raises forecast for financial year 2010 after encouraging start to first quarter

GFT Technologies AG / Quarter Results

11.05.2010 07:33

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GFT raises forecast for financial year 2010 after encouraging start to
first quarter

• Earnings before taxes (EBT) up 49 percent to EUR 1.62 million (prev.
  year: EUR 1.09 million)

• Year-on-year revenue growth to EUR 54.43 million (prev. year: EUR 53.23
  million)

• Services division benefits from growing demand: revenue up 22 percent
  and earnings up 68 percent

• Earnings forecast for 2010 upgraded to between EUR 9 and EUR 10 million

• Revenue forecast of EUR 230 million for the current financial year
  confirmed

Stuttgart, 11 May 2010 - GFT Technologies AG has got off to a dynamic start
in its financial year 2010, posting increased revenue and earnings in the
first quarter. At EUR 1.62 million, earnings before taxes were up 49
percent on the previous year (EUR 1.09 million). There was year-on-year
growth in revenue of EUR 1.2 million to EUR 54.43 million. The Services
division in particular benefited from growing demand in the financial
services sector and reported strong year-on-year growth in revenue and
earnings. 'We succeeded in carrying the momentum from late 2009 into the
current year and were able to profit from the ongoing recovery of our
markets,' states GFT's CEO Ulrich Dietz. For 2010 as a whole, GFT has
confirmed its revenue forecast of EUR 230 million and, in view of the
positive development of business, has raised its earnings forecast to
between EUR 9 and EUR 10 million. 'In 2010, we have the chance to achieve
further sustainable growth. We expect to be able to raise revenue and
earnings significantly during the course of the year.'

Earnings: significant year-on-year increase of 49 percent

As of 31 March 2010, earnings before taxes of the GFT Group amounted to EUR
1.62 million and were thus well above the prior-year figure of EUR 1.09
million. The Services segment made the largest contribution to total
earnings with an amount of EUR 1.29 million. With its clear focus on the
financial services sector, the division succeeded in raising its segment
result by 68 percent to EUR 1.29 million (prev. year: EUR 0.77 million).
The Resourcing segment accounted for EUR 0.38 million of total earnings
(prev. year: EUR 0.63 million). The division suffered from the ongoing weak
demand for freelance IT specialists, which left its mark on revenue and
thus on the segment result.

Revenue: up on last year due to growing demand in financial sector

In the first three months of the financial year, the GFT Group generated
revenue of EUR 54.43 million (prev. year: EUR 53.23 million). The increase
resulted mainly from the positive development of the Services division. The
segment benefited from the recovery of the financial services sector and
was able to raise revenue by 22 percent to EUR 26.62 million (prev. year:
EUR 21.89 million), thus contributing 49 percent to total revenue (prev.
year: 41 percent). The strong increase in demand for IT solutions in the
field of corporate and investment banking in the company's core markets of
the USA and UK helped boost growth. There was also stronger demand for
outsourcing services, which help clients create more flexible cost
structures. The Resourcing division registered cautious demand for IT
freelancers in all sectors and countries during the first three months of
the year. The segment generated a total of EUR 27.81 million (prev. year:
EUR 31.34 million). Cost-cutting measures in the industrial sector left
their mark above all on the field of Resource Management. Revenue in this
area fell from EUR 16.62 million last year to EUR 13.76 million in the
period under review. Projects in the financial sector enabled the company's
Third Party Management business to improve its standing in a difficult
market environment. At EUR 14.05 million, revenue remained stable (prev.
year: EUR 14.72 million).

Further key figures: solid balance sheet structure, increased headcount

Net income as at 31 March 2010 amounted to EUR 1.16 million and was thus
EUR 0.29 million above the prior-year figure of EUR 0.87 million. Earnings
per share improved to EUR 0.04 in the first quarter, compared to EUR 0.03
for the same period last year. There was a strong year-on-year increase in
cash, cash equivalents and securities, which amounted to EUR 31.32 million
as of the balance sheet date (prev. year: EUR 26.57 million). On 31 March
2010, the GFT Group had 1,149 employees and thus 172 more than in the
previous year (977). The increase resulted from the takeover of staff as
part of an outsourcing project started in late 2009 and new hirings at the
company's development centres in Spain and Brazil.

In accordance with IFRS regulations, the Software segment is not included
in the present key financial figures as it is planned to sell this
division.

Outlook: revenue forecast for 2010 confirmed, earnings forecast raised

'We expect a further positive development for our business in the financial
year 2010,' explains GFT CEO Ulrich Dietz. 'Demand for outsourcing
solutions and IT projects for corporate and investment banking will
continue to grow. We also see growing demand for IT applications in the
field of Mobile Banking. With our centre of expertise for Mobile Finance,
we are well equipped to offer clients innovative solutions to mobilise
their business processes'. The continued recovery of the economy as a
whole, and above all the industrial sector, is also expected to provide the
Resourcing segment with a significant boost to growth in the second half of
the year.

'Although the economic prospects remain uncertain, we are optimistic that
we can achieve sustainable growth in 2010,' says Ulrich Dietz and adds,
'the positive development of the first quarter strengthens this
conviction'. The Executive Board has therefore confirmed its revenue
forecast of EUR 230 million for the year as a whole. GFT has raised its
forecast for earnings before taxes and now expects to achieve pre-tax
earnings of between EUR 9 and EUR 10 million.

Detailed financial figures are available in the Investor Relations section
of the GFT website at http://www.gft.com/ir.

About GFT:

The GFT Group, headquartered in Germany, is an international provider of
innovative IT solutions and services. Over 20 years of experience makes the
company a reliable and strategic IT partner, enabling its clients to
optimise their business processes through intelligent IT systems and
specialists and to thus sustainably improve their competitive positions.

GFT is among the world's leading IT service providers in the financial
services sector. The company combines established technology experience
with a wide range of industry expertise, in order to develop, implement and
maintain customised IT solutions (Services division).

GFT recruits and places IT freelancers across a range of industries and
locations. It also oversees the complete management package for its
clients. The basis for this is a worldwide reserve of experts, consisting
of over 180,000 freelance IT specialists (Resourcing division).

Through its software offering, inboxx, GFT provides a new generation of IT
solutions, which make it possible for businesses to manage all archiving
tasks via a uniform central infrastructure (Software division).

Ulrich Dietz founded GFT in 1987 and is now CEO of the Group which, in
2009, achieved revenues of around 217 million EUR. It has more than 1,100
employees at locations in seven countries. GFT shares are listed on the
Frankfurt Stock Exchange (Prime Standard: WKN 580 060, GEX).

Contact:
Andrea Wlcek
Director Global Marketing, Media & 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

11.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: 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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