SQS Software Quality Systems AG Regulatory News (SQS)

13 Jan 2010 07:00



13 January 2010

SQS Software Quality Systems AG

("SQS" or "the Company")

Trading Update

SQS Software Quality Systems AG (AIM: SQS.L), the world's largest supplier of independent software testing and quality management services, is pleased to provide an update on trading for the year ended 31 December 2009. 

Trading in the second half of the year has progressed in line with expectations. Our services and consulting business experienced improving rates of utilisation, with a return to normal utilisation levels during the last quarter. Price levels have not yet recovered to historical levels but the price deflation experienced in the first half of 2009 stabilised in the second half. 

As the second half progressed we saw improvements across our key markets of Germany and the UK and secured a number of new contracts. Austria and Switzerland continued to perform well and the Nordic regions are now showing positive signs of recovery. Although not a large market for SQS, Ireland continues to be affected by the economic downturn and operations remain weak in this region.

New contracts secured since the Company's last update include the following:

a major international Nordic based fashion retailer has engaged SQS to lead the Quality Assurance of its extensive E-Commerce programme in 2010. SQS will be providing a range of quality assurance and testing consultancy services to help the client realise its business and technical goals.

one of Germany's leading manufacturers for renewable energy solutions has engaged SQS to integrate and execute the software testing of two development projects. The contract also involves the formation of a test lab to ensure the developed software is fully integrated with all individual hardware components.

a major central European airport authority has engaged SQS to set up a virtual test centre to ensure that only software components that have previously been verified by the test centre will be put in production.

a major German bank has engaged SQS to provide a team of approximately fifteen consultants to ensure the smooth IT integration of an acquired regional bank through the provision of state of the art testing services. The contract is expected to continue until at least the end of 2010.

Rudolf van Megen, Chief Executive Officer of SQS commented, "We are pleased to report the improved utilisation rates and healthier end user markets that materialised during the second half of the year. We signed a number of significant contracts in the second half, many of which are ongoing, which contributed to a solid performance during that period and which provide good visibility into 2010. While we remain aware that markets have not yet fully recovered we are encouraged by recent developments and look forward to 2010."

The management of SQS will be hosting a conference call for analysts at 9.00 am today. If you require dial-in details please contact Hilary Millar at ICIS at hilary.millar@icisnet.com or by calling 020 7651 8688.

SQS will be announcing its preliminary results for the year ended 31 December 2009 on 10 March 2010.

Enquiries:

About SQS

SQS is the world's largest supplier of independent software testing and quality management services. SQS consultants design and oversee quality management processes during software and IT systems development and test the resulting products for errors and omissions.

Headquartered in Cologne, Germany, SQS has approximately 1,400 employees across Europe, Asia, North America and Africa. The Group has a strong presence in Germany (Cologne, Munich, Frankfurt, Stuttgart, Goerlitz and Hamburg) and in the UK (London, Woking, Birmingham, Manchester, Belfast), Ireland, the Netherlands, Switzerland, Austria, Sweden, Norway, Finland, India, Egypt, the United States and South Africa. SQS also has a minor stake in an operation in Portugal and a partnership operation in Spain.

With more than 5,000 completed projects, SQS has a strong customer base including 36 FTSE-100 companies, half of the DAX 30 and nearly a third of the STOXX-50. It supports clients in a wide range of industries, including major corporations such as Deutsche Bank, Deutsche Telekom, Deutsche Post, Allianz, Meteor, BP, JP Morgan, UBS, Beazley, Volkswagen, and Daimler.

www.sqs-group.com