EBITDA up 225% to £2.6 million; operating cash inflow increased to £5.5 million
Intec Telecom Systems PLC (“Intec” or “the Company”), a leading provider of telecoms Operations Support Systems (“OSS”), is pleased to announce its unaudited results for the nine months ended 30 June 2003. Substantial improvements in operating expenses compared to the equivalent period in 2002 (“9m 2002”), combined with revenues that have proved robust in a difficult and competitive business environment, have allowed the Company to approximately triple EBITDA profitability and to deliver positive operating cashflow of £5.5 million. Adjusted earnings per share (“EPS”) has also increased to earnings of 0.53p (9m 2002 – adjusted loss per share of 0.66p.)
The final quarter of 2003 has begun well, with a number of important new deals already signed after the quarter end. Although we are still subject to many external factors and new business remains to be closed, current visibility allows us to be cautiously confident, as in previous years, of meeting full year expectations.
HIGHLIGHTS
- Nine months’ revenues of £33.2 million (9m 2002: - £34.1 million) despite the impact of significant depreciation of the US Dollar affecting 46% of revenues.
- 225% increase in earnings before interest, tax, depreciation, and amortisation (“EBITDA”) to £2,596,000 (9m 2002: £800,000).
- Positive operating cashflow of £5.5 million (9m 2002: inflow of £0.8 million) – the year to date cash inflow is twice the 2002 full year figure.
- Adjusted earnings per share of 0.53 pence (9m 2002: adjusted loss per share of 0.66 pence).
- Recurring revenue, up 22% compared to the same period in 2002, now represents 53% of turnover.
- Loss before tax was £3.9 million (9m 2002: loss of £12.8 million), after amortisation of goodwill and intangible assets of £5.3 million (9m 2002: £12.2 million) and depreciation of £1.4 million (9m 2002: £1.3 million).
- 71 new name customers, including 31 from the acquisition of the Settler business from Ericsson.
- Customer installations reach 476 with important wins in Australia, China, Colombia, the Czech Republic, India, Ireland, Italy, Jamaica, South Africa, Venezuela, the UK and the US.
- Intec remains fully funded with cash and cash equivalent investments increased to £14.0 million (30 June 2002: £11.8 million) after payment of £3.1 million for the Settler business.
- Intec wins “Telestrategies Mediation Excellence Award” for second year running in June.
“Intec has remained focused on its objective of improved operating performance in a market that remains competitive, price-sensitive and capex-constrained,” says Intec’s Executive Chairman, Mike Frayne. “We have been able to improve sales productivity, cut administrative costs, and increase development group efficiency while sustaining overall revenues. Another strong quarter of cash flow performance and improved earnings per share demonstrate the success of our strategy in the current market.”
“Intec continues to develop as a business, both in its operating performance and in its internal processes. In the current market our focus is on the best possible business performance today, combined with investment in key areas for the future,” adds Chief Executive, Kevin Adams. “We have won some very important deals in the period, beating off strong competition and increasing our market share.”
For further information:
Kevin Adams, CEO
Intec Telecom Systems PLC
+44 (0) 1483 745800
kevin.adams@intec-telecom-systems.com
Andrew Rodaway
Intec Telecom Systems PLC
+44 (0) 7768 808082
andrew.rodaway@intec-telecom-systems.com
Cubitt Consulting
Fergus Wylie/Sarah Brydon
+44 (0) 20 7367 5100
fergus.wylie@cubitt.com
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