SQS Software Quality Systems AG Regulatory News (SQS)

5 Jul 2007 07:00

SQS Software Quality Systems AG05 July 2007 5 July 2007 SQS Software Quality Systems AG Trading update SQS Software Quality Systems AG (AIM: SQS), is pleased to announce an update ontrading for the six months ended 30 June 2007. SQS is consolidating its position as the world's largest pure-play provider ofindependent software testing and quality management services. The strongperformance reported in early May has continued and the Group expects to reportfirst-half revenues considerably ahead of the same period last year - in linewith the Board's expectations. The Company benefited from a first time contribution from Cresta - the UKsoftware testing business acquired in July 2006 (and which therefore made nocontribution in the first half of 2006). Revenue growth from existing operationswas significantly in excess of the 5.4% growth rate forecast for the European ITservices industry by the European Information Technology Observatory. The Company continues to generate expected margin improvements from higherpricing in the UK and Germany, continued high levels of utilisation and anincreased number of consultants. In the six months under review, the Groupincreased its headcount by 17% to 860 and a continuing investment in staff willhelp SQS meet the growing market demand for independent software testing andquality management. As reported in May, new clients have been won in all key markets andterritories, with notable gains in the financial services and automotivesectors. The Group added 64 new customers in the first half of 2007, compared with 100across the whole of 2006, and the number of long-term contracts doubled to 14,many of which have offshore delivery components. The Group will continueinvesting in its offshore facility in South Africa and is successfully engaginghigh-quality software testing staff whose contribution is significant. SQS will announce its interim results on 6 September 2007. For further information please contactSQS Software Quality Systems AG +49 22 03 91 54 0Rudolf van Megen, CEORene Gawron, CFO College Hill Associates Ltd +44 (0) 20 7457 2020Sara MusgraveCarl Franklin Notes to editors SQS is the world's largest independent provider of software testing and qualitymanagement services. SQS consultants design and oversee quality managementprocesses during software and IT systems development, and test the resultingproducts for errors and omissions. Headquartered in Cologne, Germany, SQS now has 860 employees across Europe andin South Africa. The Group has a strong presence in Germany (Cologne, Munich,Frankfurt, Stuttgart and Hamburg) and in the UK (London, Woking, Birmingham,Manchester, Belfast), Ireland, Netherlands, Switzerland, Austria and SouthAfrica. SQS also has a minor stake in an operation in Portugal and a partnershipoperation in Spain. With more than 4,000 completed projects under its belt, SQS has a strongcustomer base including 36 FTSE-100 companies, half of the DAX 30 and nearly athird of the STOXX-50. It supports clients in a wide range of industries,including major corporations such as Lloyds TSB, Deutsche Telekom, Barclays, BP,Credit Suisse, Volkswagen, and Airbus. This information is provided by RNS The company news service from the London Stock Exchange