SQS Software Quality Systems AG Share News (SQS)

SQS Software Quality Systems, a German-based provider of software testing and quality management services, has been awarded multiple contract wins, a number of which have resulted from its existing partnership with Siemens. The company has signed three agreements with Siemens in Europe, one in Japan (which represents a new territory in which SQS is now delivering services) and two in the US.The group seemed to be particularly pleased with the US deal, explaining that it is "a region of particular strategic focus for SQS given that it is the world's largest software testing services market where there are significant opportunities in high margin software product testing as well as in the automotive sector". It has also won a "significant" multi-year contract with a major transport infrastructure provider in Switzerland, and a global insurance provider, a multinational consumer goods company and a tier-one bank in the UK. In total these new contracts represent business worth around €10m over two years, it said.The company also announced that it has won a considerable number of contract extensions and contract expansion orders since June 30th within the Managed Services business, which now accounts for approximately 35% of total revenue, which the group plans to increase to 40% by 2014. Cash flow generation is reported to be "significant", with net debt reduction progressing in line with management expectations and is much lower than at the same time in 2011. Diederik Vos, the Chief Executive Officer of SQS, said: "My first few months as CEO of SQS have proved highly rewarding. We have made significant progress on all fronts of the strategic plan outlined at the interim results and we have signed a number of strategically important contracts that further validate the initiatives towards more Managed Services and Specialty Consultancy services that we have put in place."NR