Turnover increases 120%; EBITDA £1.6m; strategic 3G contract
Intec Telecom Systems PLC (“Intec” or “the Company”), a leading provider of telecoms Operations Support Systems (“OSS”), today announces its unaudited results for the nine months ended 30 June 2001. The Company is pleased to report a good financial performance, important new customer wins and continuing corporate development in a market that remains competitive but with growing opportunities in next-generation technologies.
Highlights
- Turnover for the nine months increased by 120% to £26.7 million over the equivalent period (9 months ended 31 June 2000 – £12.2m), including £10.9 million from acquisitions.
- Profit for the nine months before interest, tax, depreciation, and amortisation (“EBITDA”) of £1.6 million.
- Loss solely due to large write down of goodwill (£133.4 million) on acquisitions and goodwill amortisation (£7.3 million) in compliance with Financial Reporting Standards
- Worldwide agreement with Hutchison 3G for convergent mediation and billing highlights cross-selling opportunities
- 13 new contract wins including first customers in Brunei and Indonesia
- Acquisition of Dataphone adds strong fraud management product in a growing market
- Integration of previous acquisitions now complete
- Intec remains in strong cash position - £19.4 million
“The telecoms industry is experiencing a period of fundamental change, as suppliers and carriers realign their businesses to market demand,” says Intec Executive Chairman, Mike Frayne. “Yet our results show there is continuing demand from major operators for solutions that help them maximise revenues from their existing investment, and that operators are looking to invest in products that are compatible with the next wave of broadband technologies. Our global contract with Hutchison 3G reinforces Intec’s capability as a key provider of OSS in the UMTS marketplace, as well as delivering strong revenue potential over several years.”
“We have decided to follow the accounting practice of a number of companies and, in accordance with UK Financial Reporting Standards, have recognised a substantial goodwill impairment charge (£133.4 million) on recent acquisitions in the profit and loss account. This means that we will not have to incur an inaccurate goodwill amortisation figure in future periods. It does not influence the underlying operating performance of the business, or our belief in the individual performance and strategic value of these acquisitions.”
“Contributions from all parts of the business, two new products launched and growing acceptance of Intec’s solutions around the world provide a solid foundation for continued growth,” adds Chief Executive Kevin Adams. “We remain highly focused on the basics of the business in these challenging times, and we feel confident that we can maintain and extend our market position through our competitive and customer-focused approach.”
About Eastern Broadband Telecom
Eastern Broadband Telecom (EBT) is Taiwan's first private fixed network telecom operator and the country's sixth largest business entity. Established in May 2000, EBT leads Taiwan's broadband telecom industry, successfully integrating communications, computing, CATV and content to offer complete convergence services. EBT is currently upgrading its networks to provide IP services in Taiwan, including broadband access to the Internet, network-based firewalls and business-class Virtual Private Networks (VPNs).
In addition to the telephony and broadband data services, EBT is intensively conducting its strategic alliance with domestic and international leading ISP, ICP, ASP, IT industries and telecom operators to provide the complete services of 4C convergence. EBT will also take part in future satellites, submarine cable and 3G mobile telecommunications to provide a full range of both fixed and mobile broadband telecom services.
For more information about EBT please visit the website athttp://www.ebtelco.com