Welcome!

News Feed Item

IBS Group Reports Operating Results for the Second Quarter and Six Months Ended September 30, 2012

RAMSEY, the Isle of Man, November 29, 2012 /PRNewswire/ --

Please refer to the relevant legal information at the end of this document

IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software development and IT services provider in Central and Eastern Europe, today announced its preliminary unaudited operating results for the second quarter and six months ended September 30, 2012 (2Q and 1H FYE March 31, 2013) .

1H FYE March 31, 2013 highlights

  • Consolidated revenues totaled US$378.0 mn, a 6.0% increase y-o-y, driven by a pickup in activity in both segments.
  • Revenues in the IT Services segment increased by 1.8% in US$ terms and 12.4% in Russian ruble terms, whereas revenues in the Software Development segment saw a 13.5% increase in US$ terms.
  • Revenues generated in Europe and North America amounted to US$137.4 mn, and now account for 36.3% of consolidated Group revenues against 34% a year ago.
  • Total headcount rose to 8,372 employees, an increase of 7.1% y-o-y; mostly due to an increase of IT professionals in the Software Development segment.
  • Total debt amounted to US$67.4 mn, a decline of US$4.3 mn y-o-y; the net debt position didn't change significantly from the previous year.
  • Consolidated revenues growth guidance for FYE March 31, 2013 has been updated to be in the range of 9-13%.

Consolidated revenues by segment *

                                         2Q           1H    1H
                                        FYE          FYE   FYE
                               2Q FYE March        March March
                            March 31,   31, Change   31,   31, Change
    US$ mn                       2013  2012  y-o-y  2013  2012  y-o-y
 
    Consolidated revenues       212.6 180.0  18.1% 378.0 356.6   6.0%
    IT Services segment         122.3  97.7  25.2% 200.8 197.3   1.8%
    IT Services segment,                  2            6     5
    RUB mn                    3 876.9 997.0  29.4% 376.8 672.3  12.4%
    Software Development
    segment                      74.1  66.1  12.1% 145.1 127.9  13.5%
    Corporate,
    eliminations, and other      16.2  16.2     0%  32.1  31.4   2.2%


* Source: management accounts.

Consolidated revenues for the second quarter of FYE March 31, 2013 amounted to US$212.6 mn, an increase of 18.1% y-o-y driven by solid performance in both segments. Consolidated revenues for the first half of FYE March 31, 2013 came to US$378 mn, an increase of 6.0%   y-o-y.

IT Services segment revenues for the first half of FYE March 31, 2013 amounted to US$200.8 mn, representing an increase of 1.8% y-o-y. Ruble revenues for the same period totaled RUB 6,376.8 mn, up 12.4% y-o-y. OOO Borlas Group's revenues, disposed in February 2012, amounted US$18.9 mn in the first half of FYE March 31, 2012. Adjusted to account for the disposal of OOO Borlas Group, the segment's revenues in Russian rubles increased by 24.4% y-o-y in the first half of FYE March 31, 2013. The increased number of IT infrastructure projects was the key driver behind revenue growth in the segment during the reported period.

Software Development segment revenues during the first half of FYE March 31, 2013 rose to US$145.1 mn, an increase of 13.5% y-o-y. Automotive&transport and financial services verticals showed the fastest growth in the reported period. The segment's revenues in constant currency* increased by 17.5% and 19.6% y-o-y respectively in the second quarter and first half of FYE March 31, 2013.

* Constant currency revenues are calculated based on a weighted average of actual daily exchange rates for previous periods.

Consolidated revenues by geography *

                                  1H FYE   Share             Share   Change
                                   March      of    1H FYE      of       in
                                     31,   total March 31,   total absolute
    US$ mn                          2013 revenue      2012 revenue   result
    Revenues generated in Russia
    and the CIS                    240.6   63.7%     235.3   66.0%     2.3%
    Revenues generated in Europe    70.1   18.5%      64.1   18.0%     9.4%
    Revenues generated in North
    America                         67.3   17.8%      57.2   16.0%    17.7%


* Source: management accounts, customer geography determined based on the location of clients' key decision maker.

Revenues from Russian operations totaled US$240.6 mn, representing an increase of 2.3% y-o-y. During the same period, revenues generated in Europe totaled US$70.1 mn, an increase of 9.4% y-o-y, and now account for 18.5% of the Group's revenues. Revenues in North America rose to US$67.3 mn, up 17.7% y-o-y and now account for 17.8% of the Group's revenues. The progress in Europe and North America is attributable to business growth in the Software Development segment.

Headcount *

                         September September Change June 30,  Change
    Number of employees   30, 2012  30, 2011  y-o-y     2012   q-o-q
    Group headcount          8 372     7 817   7.1%    8 363    0.1%
    IT Services segment      2 456     2 560  -4.1%    2 526   -2.8%
    Software Development
    segment                  5 568     4 936  12.8%    5 528    0.7%
    Corporate and other        348       321   8.4%      309   12.6%


* Source: management accounts.

The Group's total headcount amounted to 8,372 employees, an increase of 7.1% y-o-y, mainly due to the expansion of delivery centers in the software development segment. In the IT Services segment, we disposed Expertek in July 2012 (former IT Services subsidiary focused on niche solutions for retail business) which further decreased the number of IT professionals q-o-q to 2,456. No significant change in the segment's number of employees is expected before the end of the fiscal year. In the Software Development segment, the number of employees amounted to 5,568, an increase of 12.8% y-o-y, we expect headcount to resume growth by the end of the fiscal year.

Debt *

                                                      June    Change
                        September September Change     30,
    US$ mn               30, 2012  30, 2011  y-o-y    2012     q-o-q
    Total debt               67.4      71.7   -4.3    62.4       5.0
    Current debt             45.8      48.0   -2.2    42.0       3.8
    Non-current debt         21.6      23.7   -2.1    20.4       1.2
    Net debt                 53.7      53.0    0.7    40.9      12.8


* Source: management accounts.

The Group's total debt decreased by US$4.3 mn y-o-y to US$67.4 mn. Over the last quarter the Group's debt position increased by US$5.0 mn, and the net debt position increased by US$12.8 mn - both are attributable to the short-term seasonal working capital financing of IT Services segment.

Full year revenues outlook

We have updated our outlook for the Group's consolidated revenues growth, which is now expected to be in the range of 9-13% in USD terms. In the IT Services segment revenues growth is expected to be in the range of 6-10% in US$ terms, and we add revenues growth outlook for the segment in ruble Russian terms to be in the range of 13-17%. In the Software Development segment we expect revenues growth to be in the range of 16-21% in US$ terms.

Anatoly Karachinsky, President of IBS Group commented,

"IBS Group has met its targets and performed according to expectations in the preliminary forecasts for the first half of the year. As such, we can view these results as positive. This year has brought robust growth in the IT Services segment. Turnover in rubles for the segment has grown by more than 24% y-o-y, after factoring in the disposal of part of the business last year. The growth in this segment mainly stems from our success in bringing new solutions to the Russian market during implementation of IT infrastructure projects, including cloud technologies and Big Data. The Software Development segment has also grown rapidly owing to our continuing success in financial and automotive verticals. Overall, the outcomes have been affected by the global economic instability, especially fluctuations in the currency markets.  This is reflected in our updated growth forecasts of 9-13% for the Group's turnover in the current financial year."

About IBS Group Holding Limited

IBS Group is a leading software development and IT services provider in Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development and IT services outsourcing, IT infrastructure and business applications implementation. IBS Group has business operations in Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA, Vietnam and Singapore. IBS Group employs more than 8,300 people worldwide. In the year ended March 31, 2012, the Group reported US GAAP consolidated revenues of US$816.3 million. IBS Group's Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)

http://www.ibsgr.com

Disclaimer

The information contained in this release is not for publication, distribution or release, directly or indirectly, in the United States of America (including its territories and possessions, any states of the United States and the District of Columbia) or any other jurisdiction where such distribution is unlawful. Such release does not constitute an offer for the sale of securities in the United States of America, Canada, Australia, Japan or in any other jurisdiction in which an offer is subject to legal restrictions.

The information communicated in this document contains certain statements that are or may be projections or forward looking. These statements typically contain the words "anticipate", "believe", "intend", "estimate", "expect", "plan", "project" and words of similar meaning. By their nature, forward-looking statements are not statements of historical fact and reflect the current assessments, views, assumptions and beliefs made by the Company's management according to the information available at the time made about future events, operating performance, financial condition, business strategy, the Company's plans and objectives for future operations and the industry in which the Company operates. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any of which can lead to the actual results of operations, profitability, performance, profits or achievements of the Company to be materially different from the results of operations, profitability, performance, profits or achievements of the Company expressed or implied by these forward-looking statements. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company may include, among others, general economic and competitive environment conditions in the markets in which the Company operates as well as many other risks affecting the Company and its operations. In view of these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements.

The Company undertakes no obligation to review, update, amend or revise any of its forward-looking statements, whether as a result of new information, future events or developments or otherwise, or to reflect actual results, changes in assumptions or changes in factors affecting these statements. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. All subsequent written and oral forward-looking statements attributable to the Company, and those acting on its behalf, are expressly qualified in their entirety by the foregoing.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.