QSC AG

Earnings Release • Nov 19, 2007

News Details

Corporate | 19 November 2007 07:50

QSC submits report on the third quarter of 2007

QSC AG / Quarter 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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QSC submits report on the third quarter of 2007

Cologne, November 19, 2007. QSC AG today submitted its report on the third
quarter of 2007. There were no material changes to the preliminary results
announced on October 25, 2007.

In the third quarter of 2007, QSC grew its revenues by 22 percent to € 83.2
million, as opposed to € 68.4 million for the corresponding quarter the
year before. The company generated its strongest growth in the
Wholesale/Reseller segment, where revenues rose by 74 percent to € 31.8
million. Overall, QSC increased the share of its total revenues accounted
for by its three strategic segments of Large Accounts, Business Customers
and Wholesale/Resellers to 87 percent, as opposed to 82 percent for the
third quarter of 2006.

Totaling € 7.4 million, EBITDA was 42 percent higher than the company’s
EBITDA of € 5.2 million for the third quarter of 2006; at € -4.7 million,
however, the consolidated net loss was up from € -2.0 million the year
before. This stemmed primarily from the strong rise in depreciation expense
attributable to the expansion of the network; in the third quarter of 2007,
depreciation expense totaled € 12.7 million, as opposed to € 7.2 million
for the same quarter the year before.

QSC expanded its network according to schedule in the third quarter of
2007, and can now already directly access some 1,600 central offices.
Consequently, capital expenditures rose to € 34.5 million, as opposed to €
7.4 million for the corresponding quarter the year before. This line item
additionally includes unplanned capital expenditures for measurement
solutions in wholesale business, as well as an earlier upgrade of the
existing network to SHDSL technology, as it is more efficient to perform
this upgrade concurrently to the network expansion.

Given the weaker operational development in the third quarter of 2007, QSC
had already adjusted its guidance for the current fiscal year in connection
with the announcement of its preliminary results on October 25, 2007: The
company now anticipates revenues of about € 325 million, an EBITDA of
around € 35 million, as well as a marginally positive net income after
taxes.

Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49(0)221-6698-724
Fax: +49(0)221-6698-009
E-mail: invest@qsc.de

Notes:
The complete 9-months report is available under
http://www.qsc.de/en/investor-relations.html. This corporate news contains
forward-looking statements. These forward-looking statements are based on
current expectations and forecasts of future events by the management of
QSC AG. Due to risks or mistaken assumptions, actual results may deviate
substantially from those made in such forward-looking statements. The
assumptions that may involve material deviations due to unforeseeable
developments include, but are not limited to, the demand for our products
and services, the competitive situation, the development, dissemination and
technical performance of DSL technology and its prices, the development and
dissemination of alternative broadband technologies and their respective
prices, changes in respect of telecommunications regulation, legislation
and adjudication, prices and timely availability of essential third-party
services and products, the timely development of additional marketable
value-added services, the ability to maintain and enlarge upon marketing
and distribution agreements and to conclude new marketing and distribution
agreements, the ability to obtain additional financing in the event that
management's planning targets are not attained, the punctual and full
payment of outstanding debts by sales partners and resellers of QSC AG, and
the availability of sufficient skilled personnel.
19.11.2007 Financial News transmitted by DGAP

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Language: English
Issuer: QSC AG
Mathias-Brüggen-Straße 55
50829 Köln
Deutschland
Phone: +49 (0)221 66 98-112
Fax: +49 (0)221 66 98-009
E-mail: invest@qsc.de
Internet: www.qsc.de
ISIN: DE0005137004
WKN: 513700
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf

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