AC-Service AG / Quarter Results 30.04.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- AC-Service AG Quarterly Results: Major Advances in 1st Quarter Largest licensing deal in corporate history / Sales increase 19% / Significant progress in operating earnings / Stefan Land new CFO / Realignment leads to newly formed business divisions / Outlook confirmed for full 2008 year Stuttgart, 30 April 2008 AC-Service is off to a successful start in the financial year 2008. The results for the 1st quarter show once again the kind of strength that comes from a business model that is becoming better integrated, embraces the entire IT value chain of small to mid-sized businesses and enables comprehensive service and support for the customer. This end-to-end sales and support approach also proved to be a success factor in the largest licensing deal in the companys history, which the AC-Service unit All for One landed in the 1st quarter of 2008 along with a whole series of other new client projects. Realignment taking giant steps forward The realignment that began in 2007 with the goal of becoming a leading IT service provider for SAP in the German-language midmarket segment is making great strides in 2008. The new Chief Financial Officer is Stefan Land. The reorganisation of the board of directors, which began in 2007, is now complete. The decision to sell the wholly-owned subsidiary ACCURAT Informatik GmbH is another consequence of the focus on the SAP midmarket segment. The exclusive sales negotiations that were announced on 14 February 2008 have started. ACCURAT has been reported separately as a discontinued operation (IFRS 5) since that time. The realignment and the implementation of the strategy are also reflected in a change in the reporting of the AC-Groups operating segments (IFRS 8). The two business units »Integrated Solutions« and »HR Solutions« highlight this newly formed, integrated business model. Continued robust and dynamic growth curve The AC-Group is continuing with its robust and dynamic approach to expansion in the 1st quarter of 2008. Big gains in sales compared to the corresponding prior-year quarters have now been posted over 9 consecutive quarters. Not including the discontinued ACCURAT division, sales grew 19% to EUR 21.7 million in this 1st quarter of 2008. The 1st quarters EBITA was EUR 0.8 million (Q1 2007: EUR 1.1 million) and the EBIT was EUR 0.6 million (Q1 2007: EUR 0.9 million). The prior-year EBITA and EBIT mentioned include investment tax credits in the amount of EUR 0.7 million that are attributable to other periods. A comparison on an adjusted basis shows an increase in EBITA of +81% and in the EBIT of +197% and illustrates the excellent progress that was made in operating earnings performance during the 1st quarter of 2008. Earnings after taxes totalled EUR 0.1 million (prior-year quarter: EUR 0.5 million) and represent quarterly earnings per share of 2 euro cents (Q1 2007: 10 euro cents) in the continuing divisions. The staffing strength as at the end of the quarter increased 19% from 367 to 438 full-time employees. Total cash and cash equivalents declined from EUR 7.4 million (31 December 2007) to EUR 5.2 million and are at a relatively low level. The sustained high speed of growth and the further expansion of IT infrastructures also result in an investment peak in 2008, which cannot be funded solely from the operating cash flow. A new debt-financing strategy geared to the longer term has been developed. The negotiations with financing partners that are currently in progress should be concluded in the course of the 2nd quarter of 2008 and will enable the AC-Group to continue with its dynamic growth strategy. The good operating results of the 1st quarter of 2008 will keep the AC-Group among the fastest-growing IT services companies in the SAP midmarket segment. The Management Board has confirmed its projections for the full 2008 financial year of achieving annual sales of EUR 82 to 85 million, an EBITA of EUR 2.3 to 2.7 million, as well as an EBIT of EUR 1.3 to 1.7 million. The full Quarterly Report 1/2008 will be published as scheduled on 8 May 2008. Additional information is available on the Internet at www.ac-service.com Background Information on AC-Service AG Operating primarily in Germany, Austria and Switzerland, AC-Service is an industry focussed IT full service provider for the mid-sized business market. Market observers rank AC-Service among the leading companies serving the German-language market for SAP. AC-Service AG features a number of established brands including AC, All for One, Process Partner and KWP. Originating in Switzerland, the AC-Group has been operating for over 45 years, offers a sustainable track record and serves over 1,000 clients. With wide-ranging expertise in the whole of the IT value chain, AC implements integral solutions providing SAP licenses and software maintenance, industry solutions, business consulting, business intelligence, managed services on a »leading edge technology« basis, human capital management as well as HR business process outsourcing. With its outstanding service culture and extensive industry know-how, the AC-Group makes claim to a quality leadership with excellent customer satisfaction and service quality. AC-Service pursues a clear growth strategy and expects sales of around EUR 82 million to EUR 85 million in 2008 without the ACCURAT division (»discontinued operations«). AC-Service AG is listed in the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0005110001, WKN 511 000) and is a subsidiary of BEKO HOLDING AG, which owns approximately 55% of its stock. www.ac-service.com/english Contact: AC-Service AG, Dirk Sonntag, Tel. 0049 (0)711 78807-260, eMail dirk.sonntag@de.ac-service.com DGAP 30.04.2008 --------------------------------------------------------------------------- Language: English Issuer: AC-Service AG Schockenriedstr. 7 70565 Stuttgart Deutschland Phone: 07 11-7 88 07-260 Fax: 07 11-7 88 07-222 E-mail: info@de.ac-service.com Internet: www.ac-service.com ISIN: DE0005110001 WKN: 511000 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: AC-Service AG Quarterly Results: Major Advances in 1st Quarter
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