TXT E-Solutions — Earnings Release 2016

Jul 22, 2016

Informazione Regolamentata n. 0439-75-2016		Data/Ora Ricezione 22 Luglio 2016 10:23:06	MTA - Star
Societa'	:	TXT e-SOLUTIONS
Identificativo Informazione Regolamentata	:	77254
Nome utilizzatore	:	TXTN01 - Matarazzo
Tipologia	:	AVVI 16
Data/Ora Ricezione	:	22 Luglio 2016 10:23:06
Data/Ora Inizio Diffusione presunta	:	22 Luglio 2016 10:38:07
Oggetto	:	TXT - Preliminary revenues
Testo del comunicato

Vedi allegato.

TXT e-solutions Q2 2016 Revenues € 18.7 million (+14%)

Milan – July 22, 2016

In the second quarter of 2016, TXT e-solutions expects revenues of approximately € 18.7 million, up 14% compared to € 16.4 million in Q2 2015, due to both organic growth (+2%) and contribution of Pace GmbH (€ 2.0 million) acquired and consolidated since April 1, 2016. TXT Perform, the End-to-End Retail specialist in the Luxury and Fashion sector, slightly declined by -3% compared to Q2 2015, which was a particularly strong quarter thanks to a single large contract. TXT Next, the software specialist for Aerospace, High-Tech and Finance, grew by € 2.6 million (+42%) to € 8.9 million, thanks to organic growth (€ 0.6 million, or +11%) and to consolidation of Pace (€ 2.0 million).

As a result, consolidated revenues of the first half of 2016 reach approximately € 33.2 million, a 6.5% increase with respect to the first half of 2015 (€ 31.1 million).

Software revenues (licenses, subscriptions and maintenance) were € 8.5 million, in line with first semester 2015. International revenues are expected to account for 55% of total revenues for the Group and 87% for the TXT Perform division.

EBITDA for both the second quarter and the first half of the year is expected in line with 2015.

The financial position as of 30 June 2016 was positive by around € 0.7 million (€ 8.3 million as at 31 December 2015), after payment of dividends, of personnel bonuses and of the consideration for the acquisition of Pace.

In Q1 2016 TXT Perform signed important software contracts with many new customers, including: REI - Recreational Equipment Inc. (USA), leading retailer of outdoor equipment; Zalando (D), pure-play e-commerce apparel and footware retailer; Future Group (India) a large, fast growing retailer that operates around 18.5 million square feet of retail space in over 250 cities and towns across India; Auchan China, with its 230 hypermarkets and 45 shopping centres in China; Arcadia Group (UK), an international retailer with 2,500 stores and a number of leading brands in its portfolio (among which Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, Wallis); ECG fashion brand (B), the first TXT client in Belgium and an important win for our solutions for the Collection Lifecycle Management.

On June 27, 2016 TXT e-solutions Sagl has been incorporated in Switzerland to support the development of international customers for TXT Next division. In first semester TXT Next signed contracts with several new customers, including Pilatus (CH), Reiser Simulation & Training (D) and Goodrich Control Systems (UK, part of UTC Aerospace Systems).

TXT e-solutions S.p.A. Via Frigia, 27 - 20126 Milano (Italy) Tel. +39 02 25771.1 Fax +39 02 2578994 www.txtgroup.com

The Chairman Alvise Braga Illa has commented: "In Q2 2016 TXT Retail division signed many contracts with new important customers in Europe, United States and Asia, with a significant improvement over Q1, despite ongoing difficulties in retail and fashion industries. The competitive strength of our offering of end-to-end planning solutions emerges in hard times, when our customers do not delay investments and choose us rather than larger and smaller competitors. TXT Next also continued its good international development growing both organically and through the recent acquisition of Pace".

The Meeting of the Board of Directors for the review and approval of the Half-Yearly Report was convened for 10 August 2016.

TXT e-solutions is an international specialist in high-value, strategic software and solutions for large enterprises. The main business areas are: Integrated & Collaborative Planning Solutions, with the TXT Perform Division, especially for Luxury, Fashion, Retail and Consumer Goods; Software for Complex Operations & Manufacturing, with the TXT Next Division, for Aerospace, Defence, High-Tech and Finance. Listed in the Star Segment of Borsa Italiana (TXT.MI), TXT is based in Milan and has offices in Australia, Canada, France, Germany, Hong Kong, Italy, Singapore, Spain, Switzerland, United Kingdom and United States.

For information:

TXT e-solutions SpA Paolo Matarazzo CFO Tel. +39 02 25771.355 paolo.matarazzo@txtgroup.com