Intec Reports Results

Intec reports figures for the nine months ended June 30, including 63% increase in revenues to £76.5M

August 23, 2005

2 Min Read

LONDON -- Intec Telecom Systems PLC ("Intec" or "the Company"), a leading supplier of business and operations support systems(BSS/OSS) to the global telecoms industry, today announced its unaudited results for the nine months ended 30 June 2005 ("9m 2005").

Revenue and earnings, in line with market expectations, are substantially ahead of the same period last year, as a result of both the Singl.eView acquisition in August 2004 and a growing contribution from large, multi-product transactions. Continuing investment in product development, distribution channels and Intec's professional services capability, backed by strong cost management, has maintained sales momentum and delivery capability. Recent multi-million pound contract wins, with high activity levels in new business development, underline the continuing strength of the enlarged business.

Financial Highlights

  • Revenue up 63% to £76.5m (9 months ended 30 June 2004 ("9m 2004"):£46.9m).

  • EBITDA before exceptionals up 55% to £8.5m (9m 2004: £5.5m).

  • Services revenue up 121% to £30.4m (9m 2004: £13.8m).

  • Adjusted PBT up 52% to £5.8m (9m 2004: £3.8m).

  • Adjusted EPS up 12% to 1.61p (9m 2004: 1.44p).

  • Loss before tax of (£7.7m) (9m 2004: (£2.2m)) after £12.3m amortisation charge (9m 2004: £6.0m).

  • Operating cash inflow of £3.8m (9m 2004: inflow of £0.1m).

  • Net cash & equivalents of £28.4m (30-Jun-04: £12.8m).

Operational Highlights

  • Increase in volume of multi-product and multi-million pound contracts.

  • Notable competitive wins including VimpelCom, The Carphone Warehouse and a major US operator.

  • Increase in customer base to 715 installations within almost 500 customers(30-Jun-04: 585 installations with 409 companies).

  • Continuing investment helps Intec retain technical leadership in core product areas.

  • New technical facility opened in Bangalore, India.

"Intec's staff and management team continues to execute very satisfactorily against its business goals, within a global marketplace that remains highly competitive," said Intec's non-executive Chairman, John Hughes. "The Singl.eView acquisition, which was completed last year, has proved to be the transformational transaction that was expected. We have successfully turned around the business, and it continues to go from strength to strength. The associated evolution to a primarily Percentage of Completion revenue recognition model is being well managed. The Company, its staff and products are well positioned to maximise the growth opportunities that lie ahead."

"The multi-product, multi-million pound contract wins we are achieving, and our growing participation in leading-edge projects, indicate the continuing momentum and potential of the business," added Intec CEO, Kevin Adams."Intec has an unmatched product range, a substantial and proven global delivery capability, and a broad customer base. These are vital assets in our quest for continued growth in the OSS/BSS market."

Intec Telecom Systems plc

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