rns in full16 Feb 2010 15:29
Intec Telecom Systems
Interim Management Statement
Intec Telecom Systems PLC ("Intec" or the "Group"), a global provider of business support systems solutions, reports its Interim Management Statement for the period from 1 October 2009 to 16 February 2010.
Following a strong second half performance in 2009, reported revenues across the Group's Asia Pacific and Americas regions continue to demonstrate resilience and are performing as expected. General economic weakness across Intec's Europe, Middle East and Africa region is causing some delays in customer decisions and consequently the Group has experienced a slower start in reported revenues when compared to the same period in 2009. This, combined with the strong first half of the 2009 financial year, will likely result in first half revenues being below that achieved in the prior year in constant currency terms.
Intec's strategy to invest in future revenue growth through the continued development of its direct and indirect sales channel is consistent with that advised at our preliminary results. The Group expects to report an increase in development and sales and marketing expenses and a reduction in G&A expenses during the current year. In addition, Intec continues to improve and automate its internal processes and would expect to start to see operational benefits from this investment during the second half of the current financial year.
Intec's balance sheet remains strong and the Group will pay out its first dividend to shareholders this week.
The sales orders for the financial year to date are slightly ahead of the same period last year and the pipeline continues to be robust across all regions.
The Board remains positive and highly focused on delivering its 2010 plans.
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