DGAP-IRE: TDS Informationstechnologie AG: TDS AG boosts revenues in first quarter of fiscal 2011/2012

TDS Informationstechnologie AG  / Release of an announcement according to
Article 37x of the WpHG [the German Securities Trading Act] 

11.08.2011 09:13

Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Revenues climb by 6.8 per cent
- Order backlog increased
- Net income negatively impacted by consolidation and higher project costs
in HR Services & Solutions

Neckarsulm, 11 August 2011. The first quarter of fiscal 2011/2012 (1 April
to 30 June 2011) saw revenues rise by 6.8 per cent at TDS
Informationstechnologie AG (ISIN DE0005085609), to EUR34,703 thousand -
compared to EUR32,484 thousand for the same period last year. Earnings
before interest and tax (EBIT) stood at minus EUR346 thousand (EUR1,040
thousand in the first quarter of 2010/2011), and EBIT margin was down from
3.2 to minus 1.0 per cent. The company posted consolidated net income of
minus EUR710 thousand (minus EUR82 thousand for the same period last year).
On 30 June 2011, headcount at TDS totalled 1,314 employees (31 March 2011:
1,297).

Order intake in the first quarter grew from EUR29,714 thousand to EUR33,032
thousand year-on-year. At 30 June 2011, order backlog had increased to
EUR277,962 thousand (30 June 2010: EUR201,926 thousand).

Cash flows from operating activities totalled minus EUR714 thousand on 30
June 2011 (EUR1,843 thousand on 30 June 2010). Total assets dipped by 10.1
per cent to EUR110,853 thousand (31 March 2011: EUR123,260 thousand).
Equity-to-total-assets ratio stood at 54.0 per cent (49.2 per cent at 31
March 2011), and liabilities were down 18.5 per cent to EUR51,008 thousand
(31 March 2011: EUR62,624 thousand).

'On the whole, business developed as planned in the first quarter, and
exceeded expectations in the IT Outsourcing segment,' commented Dr. Heiner
Diefenbach, TDS CEO. In the HR Services & Solutions business unit, the
company recruited highly skilled specialists last year to manage the large
number of customer projects, many of which were complex in nature.
Moreover, organizational changes were implemented to facilitate
consolidation, with the aim of improving profitability. The resulting
higher cost of sales is now impacting EBIT development; however, these
steps are designed to strengthen the TDS Group's position in the market in
the long term.

Breakdown by segment
The IT Outsourcing business unit saw revenues jump 22.4 per cent to
EUR18,868 thousand in first quarter 2011/2012 (EUR15,420 thousand in the
same period last year). EBIT rose to EUR1,501 thousand (EUR1,326 thousand
in the first quarter of fiscal 2010/2011); EBIT margin stood at 8.0 per
cent (8.6 per cent in the first quarter of last year).

HR Services & Solutions posted revenues of EUR12,813 thousand in this
quarter (EUR14,094 thousand in the same quarter last year). EBIT totalled
minus EUR1,720 thousand; EBIT margin was minus 13.4 per cent (compared to
minus EUR231 thousand and minus 1.6 per cent respectively in the first
quarter of fiscal 2010/2011).

Revenues in the IT Consulting business unit climbed slightly to EUR3,022
thousand (EUR2,970 thousand in the same quarter last year). The company
reported EBIT of minus EUR143 thousand (an EBIT margin of minus 4.7 per
cent); for the corresponding period in fiscal 2010/2011 the figure was
minus EUR83 thousand and EBIT margin of minus 2.8 per cent.

Executive Board guidance
At the close of the first quarter, the Executive Board believes TDS
business development will remain generally stable, confirming guidance
given in June 2011. The board expects revenues of EUR140 million in fiscal
2011/2012, and an EBIT margin of around 1 per cent. Moreover, the company
intends to hire new IT professionals over the coming year.



11.08.2011 DGAP's Distribution Services include Regulatory Announcements, 
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Language:     English
Company:      TDS Informationstechnologie AG
              Konrad-Zuse-Straße 16
              74172 Neckarsulm
              Germany
Internet:     www.tds.fujitsu.com
 
End of Announcement                             DGAP News-Service
 
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