Intec Telecom
Systems PLC - Unaudited results for the 9 months ended 30 June
2004
Substantial new
contracts signed, revenues increased by 41% and EBITA increased by
274%
Intec Telecom Systems PLC (“Intec” or “the
Company”), a leading global provider of telecoms Operations
Support Systems (“OSS”) products, is pleased to
announce its unaudited results for the nine months ended 30 June
2004, (“Q3 2004”). A 96% increase in new licence sales,
with good activity across all product lines, plus solid increases
in both recurring income and professional services, have driven
revenues up by 41% and adjusted earnings per share by 172%. Trading
in the final quarter of the year continues to be healthy, despite
ongoing competition in the telecoms sector, and the Board is
confident of satisfying full year expectations.
In addition the Company announced on 4 June 2004 that it has
agreed to acquire the ‘Singl.eView’ billing and
customer care division of ADC Telecommunications
(“ADC”) for $74.5 million. This transaction, which is
subject to shareholder approval, is expected to close later in the
summer. The circular to shareholders has been issued today
and details can be found in a separate statement made by the
Company this morning.
FINANCIAL HIGHLIGHTS
- Turnover of £46.9 million increased by 41% (9 months
ended 30 June 2003 (“9m 2003”): £33.2 million)
with organic and acquisition-driven growth in all key
activities.
- Gross margin increased to 71% (9m 2003: 68%) reflecting higher
margin on improved licence revenue
- Earnings before interest, tax, and amortisation
(“EBITA”) increased to £3.7 million compared with
£1.2 million for 9m 2003.
- Adjusted EPS increased by 172% to 1.44p (9m 2003: 0.53p).
- Revenue and earnings adversely affected by US dollar
depreciation, estimated at £2.0 million and £0.8
million respectively.
- Operating cash inflow of £0.1 million (9m 2003: inflow of
£5.5 million) after working capital investment in
acquisitions and to support business growth.
- Loss before tax reduced to £2.2 million (9m 2003: loss of
£3.9 million), after depreciation and amortisation of
goodwill and intangible assets of £7.8 million (9m 2003:
£6.7 million).
OPERATING HIGHLIGHTS
- 51 new contracts since the start of the financial year of which
47 are with new customers. 25 new licences signed in the
period plus 26 new bureau customers (9m 2003: 40 new contracts
signed, plus 31 through acquisitions).
- Notable customer wins announced in Africa, Asia, Eastern
Europe, Russia, and the USA.
- Customer installations reach 585 in 409 operators – up
from 574 at the end of Q2.
- 30% increase in investment in product development
- Intec retains balance sheet strength with cash and cash
equivalent investments of £12.9 million
(9m 2003 £14.0 million).
“We continue to have strong momentum in the business, with
a doubling of new licence revenue,” said Intec’s
Executive Chairman, Mike Frayne. “All regions and product
lines are performing well in a market that is very competitive, and
we have improved our earnings performance through ongoing cost
management, despite the need to invest in a growing business. I
believe that Intec can deliver another strong performance for the
full year. In addition to this, our announced agreement to acquire
the Singl.eView business from ADC will transform Intec into a
company capable of delivering to major carriers what we believe
will be one of the broadest ranges of OSS products in the
world.”
“Intec has signed many new customers in the past three
quarters, including our largest order to date in Indonesia,”
added Chief Executive Kevin Adams. “Our growing portfolio of
major OSS applications enables us to offer our customers a proven
range of interoperable systems that they can implement with
confidence, knowing that Intec is a successful, stable supplier
with global capabilities. The proposed acquisition of Singl.eView
builds directly on this capability with an award-winning, tier one
retail billing and customer care system used by over 70
carriers.”
For further information:
Mike Frayne, Executive Chairman
Intec Telecom Systems PLC
+44 (0) 1483 745800
mike.frayne@intec-telecom-systems.com
Andrew Rodaway, Director of Marketing
Intec Telecom Systems PLC
+44 (0) 7768 808082
andrew.rodaway@intec-telecom-systems.com
Edward Bridges/James Melville-Ross/Cass Helstrip
Financial Dynamics
+44 (0) 20 7831 3113
Click here to view the full press release in
PDF format.