LHS Aktiengesellschaft: Strong growth continues unabated also in the second quarter of 2007
Frankfurt am Main (euro adhoc) -
Revenues increased by 58.7 percent - 2007 revenue guidance now adjusted upward to EUR 95 million - award received by Frost & Sullivan
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finances
23 July, 2007 - LHS Aktiengesellschaft (in the following "LHS"), a leading software provider of telecom billing and customer care systems across the wireless, wireline, and IP telecom markets worldwide, today announced the results for the second quarter of their fiscal year (ending on 30 June 2007).
The audited results have been established in accordance with the International Financial Reporting Standards (IFRS), which are mandatory for all companies borrowing on the capital market. The key figures and ratios for the ended business quarter are as follows: * LHS' revenues increased to EUR 24 million in the second quarter of 2007. This corresponds to a rise by 58.7 percent compared to the relevant quarter of the previous fiscal year. Total revenues generated in the first six months of 2007 rose by 57.3 percent to EUR 45.8 million. * The adjusted earnings before income taxes, depreciation and amortization (adjusted EBITDA) rose about 174 percent to EUR 4.9 million because the operating expenses increased proportionately less than sales revenues. On aggregate, adjusted EBITDA achieved in the first half of 2007 rose by 154.5 percent to EUR 8.9 million. * The resulting increase in the adjusted EBITDA margin to 20.2 percent in the second quarter of 2007 reflects the strict cost management measures implemented by LHS. Altogether, the adjusted EBITDA margin continued to improve throughout the first six months of 2007 and amounts to 19.5 percent for the entire period. * Adjusted profit that was achieved in the accounting period under review doubled from EUR 1.7 million in the second quarter of the previous business year to EUR 3.5 million. Concerning the first half of 2007, adjusted profit was up by 219.5 percent and rose to EUR 7.2 million. * In the second quarter of 2007, adjusted earnings per share amounted to EUR 0.25 (basic) and EUR 0.24 (diluted) respectively. Accordingly, adjusted earnings per share amounted to EUR 0.51 (basic) and EUR 0.49 (diluted) in the first half of 2007. * Because of the positive business development and financial situation the free cash flow increased from EUR 1,4 million in the first half of 2006 to EUR 8.6 million in the first half of 2007.
On Course for Continued Growth The operational business of LHS, too, featured quite a number of highlights and milestones in the second quarter of 2007. Major measures and events, which will contribute to the sustained growth of the company, include: * In June 2007, LHS received the "2007 Stratecast Global Investment of R&D Resources to Address Core Billing Needs Award" of Frost & Sullivan's Stratecast Research Group. Frost & Sullivan thus acknowledged the considerable R&D investments made by LHS for many years. * Overall the contracts for three migration projects were signed. The number of projects implementing the new BSCS iX Release 2, which was launched only in October 2006, now amounts to 11 already. * In the second quarter of 2007, LHS created 42 new jobs (19 jobs in the Frankfurt headquarters, 11 jobs in Sao Paulo, 6 jobs in Kuala Lumpur, and 6 jobs in Dubai). On 30 June 2007, LHS had a permanent staff of 590 employees all over the world.
Positive Development and Outlook The positive development of LHS Aktiengesellschaft continued unabated also in the second quarter of 2007. The increase in sales revenues and earnings underlines and confirms the company's strategic focus on sustained growth. With respect to the entire 2007 fiscal year, LHS Aktiengesellschaft now expects slightly higher revenues amounting to approximately EUR 95 million - compared to the figure of EUR 90 to 93 million announced at the end of the first quarter of 2007. The adjusted EBITDA margin is expected to amount to about 20 to 21 percent. For the third quarter 2007 LHS expects revenues of about EUR 24 to 25 million with an adjusted EBITDA margin of 20 percent. "The excellent results achieved by LHS in the second quarter of 2007 are, once again, the outcome of our teams efficiently networking all over the world. On behalf of the entire board, I would like to thank all employees of our international locations and the Frankfurt headquarters for their commitment and dedication. Together with our partners, we will continue to work dedicatedly on realizing our targets", says Wolfgang Kroh, Chief Executve Officer at LHS.
The quarterly report is available on our website: http://www.lhsgroup .com/internet/pages/investor_relations/uk/home/thema.php
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About LHS LHS is a leading provider of telecom billing and customer care systems across the wireless, wireline, and IP telecom markets worldwide. LHS Business Support Systems offer full convergence on various levels, supporting the complete range of business models both across the mix of fixed and mobile services, as well as prepaid and postpaid services. LHS builds innovative systems that enable our customers to introduce new services fast, helping drive revenues up, while keeping operational costs to a minimum. LHS was awarded "Best Billing or Customer Care Solution" by the GSM Association in Cannes in 2005, won the IIR World Billing Awards for its "Overall Best Contribution to Billing" in London in 2005 and 2006 as well as the "Stratecast Global Investment of R&D Resources to Address Core Billing Needs Award" by Frost & Sullivan in 2007. LHS is an independent software vendor (ISV) with headquarters in Germany, and offices in Brazil, Czech Republic, France, Malaysia, Turkey, and United Arab Emirates. LHS is part of the LHS Group, and LHS Aktiengesellschaft as the Group's Holding company is a public company listed on the Frankfurter Stock Exchange (LHS400).
For more information, please visit www.lhsgroup.com.
Disclaimer This press release contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts. The forward-looking statements, including assumptions, opinions and views of the Company contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. The Company is under no obligation to update or keep current the information contained in this press release to which they relate and any opinions expressed in them are subject to change without notice.
end of announcement euro adhoc 23.07.2007 07:00:00
Further inquiry note:
Press contact:
LHS
Oliver Madsen
Investor Relations Officer
Herriotstrasse 1
60528 Frankfurt am Main
Germany
Phone: +49 (0)69-2383 3264
Fax: +49 (0)69-2383 5710
E-Mail: oliver.madsen@lhsgroup.com
Commercial Register: Amtsgericht Frankfurt/Main - Registration Number HRA 42727
Personally Liable Partner: LHS Management GmbH - Registration Number HRB 75504
Amtsgericht Frankfurt/Main
Managing Directors: Wolfgang Kroh, Axel Barta, Dr. Jens Troetscher
Fink & Fuchs Public Relations AG
Stefanie Wegner
Senior Consultant
Berliner Strasse 164
65205 Wiesbaden
Germany
Phone: +49 (0)611-74 131-66
Fax: +49 (0)611-74 131-22
E-Mail: stefanie.wegner@ffpr.de
www.ffpress.net
Branche: Software
ISIN: DE000LHS4000
WKN: LHS400
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade