DGAP-News: QSC: Off to a very good start in fiscal year

QSC AG / Final Results

31.03.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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QSC: Off to a very good start in fiscal year 2008

Cologne, March 31, 2008. QSC AG today presented its 2007 annual report.
There were no material changes from the preliminary results that had been
announced on February 14, 2008.

In fiscal year 2007, QSC grew its revenues by 28 percent to  335.2
million, as opposed to  262.5 million the year before, and further
improved the quality of its revenues. The percentage of total revenues
accounted for by the three strategic segments of Large Accounts, Business
Customers and Wholesale/Resellers rose to 85 percent, as opposed to 79
percent the year before. In spite of major bottlenecks in the provision of
unbundled local loops, QSC nevertheless posted its strongest revenue growth
in the Wholesale/Reseller segment: Revenues here advanced by 87 percent in
2007 to  122.3 million, as opposed to  65.4 million the year before.

As a result of the network expansion to around 1,700 central offices by
year-end 2007, network expenses increased by 27 percent to  259.3 million,
as opposed to  203.6 million the year before. This item, like all other
expense items, was additionally impacted by the first full-year
consolidation of Broadnet AG, in which QSC acquired a majority stake on
June 6, 2006, and which was then merged with the company on October 31,
2007. QSC nevertheless succeeded in again disproportionately growing its
EBITDA in 2007: At  34.9 million, it was up 65 percent from the previous
years level of  21.2 million. Like the non-recurring, synergy-related
depreciation expense within the framework of the Broadnet merger, the
network expansion project also produced a 61-percent rise in depreciation
expense to  45.5 million, as opposed to  28.3 million the year before.
The net loss thus stood at  -10.4 million in 2007, as opposed to  -5.3
million the year before.

The gradual improvement in overcoming the bottlenecks in the provision of
local loops by Deutsche Telekom that had been seen in December 2007 was
sustained in the first quarter of 2008. Year-to-date, QSC had already
received around 125,000 additional local loops, nearly twice as many as in
the fourth quarter of 2007 and more than three times as many as in the
third quarter of that fiscal year. QSC Chief Executive Officer Dr. Bernd
Schlobohm comments as follows: 'QSC got off to a very good start in 2008.
New orders continue to rise, and the bottlenecks in the supply of local
loops are gradually being eliminated.' The company will present its
quarterly report on May 15, 2008.

Given its good start in the current fiscal year, QSC is reiterating the
guidance it had announced in February 2008: The company anticipates
revenues of between  385 and  405 million in the 2008 fiscal year, an
EBITDA of between  50 and  60 million, and plans capital expenditures
totaling between  60 and  80 million, as opposed to  122.9 million the
year before. In 2008, some 70 percent of these capital expenditures will be
attributable to customer-related capital expenditures, the majority of
which QSC promptly invoices to the respective customers. Dr. Schlobohm
explains: 'The network expansion project has largely been concluded. QSC
now possesses the necessary resources to sustain its strong and profitable
growth on the basis of its own nationwide network. The new orders we have
received during the initial months of 2008 give me every reason to be
highly optimistic about 2008!'

Queries to:
QSC AG
Arne Thull
Investor Relations
Fon: +49-221-6698-724
Fax: +49-221-6698-009
E-mail: invest@qsc.de

Notes:
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.
DGAP 31.03.2008 
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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:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Stuttgart, München, Düsseldorf
End of News                                     DGAP News-Service
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DGAP-News: QSC: Off to a very good start in fiscal year 2008
