QSC AG

Earnings Release • Aug 29, 2007

News Details

Corporate | 29 August 2007 07:50

QSC submits report on second quarter of 2007: Revenues and profitability up significantly

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 second quarter of 2007: Revenues and profitability up
significantly

Cologne, August 29, 2007. QSC AG today published its report on the second
quarter of 2007. There were no material changes to the preliminary results
announced on August 15, 2007.
In the second quarter of 2007, QSC grew its revenues by 41 percent to €
79.6 million, as opposed to € 56.6 million for the corresponding quarter
the year before. The company generated its strongest growth in the
Wholesale/Reseller segment, first and foremost in wholesale business:
Revenues in this segment advanced by 162 percent to € 27.8 million, as
opposed to € 10.6 million for the second quarter of 2006. Overall, QSC is
now already generating 84 percent of its total revenues in its three
strategic segments of Wholesale/Resellers, Large Accounts and Business
Customers; the year before, these segments had accounted for 77 percent of
total revenues.
The company’s better revenue quality led to significant improvements in
profitability again in the second quarter of 2007. Gross profit rose by 49
percent to € 29.1 million, as opposed to € 19.5 million for the comparable
quarter the year before, while EBITDA surged by 166 percent to € 10.9
million, as opposed to € 4.1 million in the second quarter of 2006.
Consolidated net income stood at € 0.5 million, as opposed to a
consolidated net loss of € -3.1 million for the comparable period the year
before.
QSC will be sustaining this high-margin growth during the second half of
2007. As already noted in announcing its preliminary results, QSC is
therefore reiterating its full year revenue forecast of more than € 350
million, its EBITDA target range of € 50 to € 60 million and is further
specifying its net income after taxes forecast to approximately € 15
million. In addition to significant rises in revenues and profitability in
the segments of Large Accounts and Business Customers, QSC particularly
expects to see strong growth in its wholesale business. All three segments
are benefiting from the ongoing network expansion to nearly 2,000 central
offices by the first quarter of 2008. The effects of this network
expansion, coupled with the marketing successes of the company’s wholesale
partners, are becoming clearer to see from quarter to quarter, prompting
QSC to anticipate especially high growth during the fourth quarter within
the second half of 2007. QSC’s Chief Executive Officer Dr. Bernd Schlobohm:
'With the network expansion, we are laying the foundation for sustained
strong and profitable growth beyond the year 2007.'

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 6-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.
29.08.2007 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: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf

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