Intec Telecom Systems PLC
22 November 2006
For immediate release 22 November 2006
Intec Telecom Systems PLC
Trading Update
Intec Telecom Systems PLC ("Intec" or "the Company"), a leading supplier of
software, solutions and services to the global telecoms industry, today
announces a trading update for its financial year ended 30 September 2006.
On 7 August Intec issued a trading update indicating that, due to consolidation
among certain major customers leading to contract postponements and delays, it
expected that revenues for the full year would fall in a range between £113m to
£120m. The Board noted at the time that 'it continues to be difficult to predict
the quantum and timing of specific purchasing decisions and the Board will
therefore continue to review the likely outcome for the year.'
Against a backdrop of continuing commercial effects resulting from the
consolidation in the US telecommunications market and the inherent uncertainty
this is creating, Intec has taken a prudent view with regard to significant but
substantially complete contracts with one US customer and has deferred
recognition of £5.5m of licence fees where payments have yet to be received,
which directly impacts EBITDA for FY2006. At the time of the 7 August trading
statement it was expected that matters relating to this customer would have been
satisfactorily resolved. As a consequence, the Board now believes that revenue
will fall below the previously stated range, at not less than £111.7m and EBITDA
before exceptionals will be not less than £3.2m.
Subsequent to the 7 August announcement, Intec has undertaken a thorough review
of its operations which has resulted in the acceleration of plans to move
delivery and development resources to lower-cost offshore locations. This will
lead to a one-off restructuring charge of £4.0m in the FY2006 accounts, which
will deliver an equivalent or greater payback in FY2007.
A conference call for analysts will be held today at 3.30 pm, please contact
Smithfield for details.
Final results will be announced on 13 December 2006.
For further information, please contact:
Intec Telecom Systems PLC www.intecbilling.com
Kevin Adams, Chief Executive Officer +44 (0)1483 745 800
Andrew Rodaway, Director of Marketing & +44 (0)7768 808082
Communications
Smithfield Consultants +44 (0)20 7360 4900
Sara Musgrave intec@smithfieldgroup.com
NOTES TO EDITORS
About Intec Telecom Systems PLC
Intec supplies billing software solutions to over 60 of the world's top 100
telecoms carriers and is one of the world's fastest growing major BSS/OSS
(business and operations support systems) vendors. Intec's 350+ customers
include AT&T, BellSouth, Cable & Wireless, The Carphone Warehouse (UK), China
Unicom, Deutsche Telekom, Eircom (Ireland), France Telecom, Hutchison 3G, O2,
Orange, T-Mobile, Telefonica, Vodafone, Virgin Mobile, Vivo and Verizon.
Intec has a comprehensive and expanding range of solutions and services ranging
from market leading mediation and convergent billing products such as their
Wholesale Business Management solution through to innovative IPTV solutions.
Intec works closely with its customers, many of whom have been with Intec since
its inception, to provide the highest standards of performance, flexibility and
robustness to help carriers service their customers effectively and profitably.
Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has
over 1,600 staff and 31 offices in 25 countries. For more information visit
www.intecbilling.com
This information is provided by RNS
The company news service from the London Stock Exchange
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