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TDS AG: TDS continues to grow

-Revenues rise by 3.3 per cent -EBIT margin falls to 3.2 per cent -Executive Board expects business development to remain stable

Neckarsulm, August 12, 2010

TDS AG (ISIN DE0005085609) provides a comprehensive range of IT outsourcing, IT consulting and HR services. TDS’ revenues increased in the first quarter of fiscal 2010/2011 (1 April to 30 June 2010) compared with the first quarter of fiscal 2009/2010, from €31,444 thousand to €32,484 thousand. This is a growth rate of 3.3 per cent. EBIT (earnings before income and tax) fell from €2,875 thousand to €1,040 thousand, with EBIT margin dropping from 9.1 to 3.2 per cent. Net income totalled minus €82 thousand, compared to €1,348 thousand in the first quarter of fiscal 2009/2010. On 30 June 2010, TDS employed 1,212 staff (1,146 in the first quarter of fiscal 2009/2010).


Financial structure

Total assets shrunk in value from €117,485 thousand to €116,285 thousand. The equity-to-total-assets ratio climbed from 46.1 to 46.7 per cent. Cash flows from operating activities jumped to €1,843 thousand in the first three months of fiscal 2010/2011, in comparison with €1,403 thousand on 30 June 2009. 


The fact that earnings dipped despite the increase in revenues (in comparison to the first quarter of fiscal 2009/2010) is primarily due to depreciation/amortisation, and energy and staff costs attributable to the construction of a new state-of-the-art data centre in Neuenstadt near Neckarsulm. A further factor was initial capital outlay for new HR Services & Solutions projects.


Overview of business units

IT Outsourcing revenues rose in line with expectations. This was countered, however, by a surge in expenses attributable to the construction of the data centre.


HR Services & Solutions continued to grow and has been able to further strengthen its market position. This led to a fall in earnings in the first quarter of fiscal 2010/2011, due to necessary initial capital outlay.


IT Consulting revenues stabilised and losses were significantly reduced.


Accounting practice

In annual financial statements on 31 March 2010, TDS MultiVision AG, Regensdorf, Switzerland was classified as a discontinued operation, due to its proposed sale. This was recognised in the accounts for the first quarter of fiscal 2010/2011, and figures for the first quarter of fiscal 2009/2010 were correspondingly adjusted.


Executive Board guidance

Taking into account the general stability of the economy and slight growth in the IT market, the Executive Board believes that TDS business development will remain stable. It anticipates revenues will total approx. €137 million in fiscal 2010/2011, and expects EBIT margin to decline to 6 per cent.

About TDS AG


TDS provides a comprehensive range of IT services, including SAP-related offerings, to mid-sized enterprises and major corporations. In addition, TDS offers software, outsourcing and related services for human resource management.


A particular focus is SAP consulting, application hosting and application management. The portfolio also includes industry-specific SAP solutions, e.g. for the process industry, as well as the cosmetics and food and drink sectors. As an outsourcer, TDS provides tailored answers to specific customer needs, and end-to-end management of entire IT infrastructures.


In the HR space, TDS can assume complete responsibility for all processes associated with managing staff. TDS is Germany’s market leader in HR business-process outsourcing (BPO), handling over 800,000 payroll transactions every month. A further million payroll transactions are processed by companies deploying TDS Personal HR software.


Currently, TDS employs around 1,200 staff at some 20 sites in Germany, Austria and Switzerland. In fiscal 2009/2010, the company posted revenues of approximately €132 million. Founded in 1975 and headquartered in Neckarsulm, Germany, TDS is traded on the Frankfurt stock exchange (ISIN DE0005085609 and DE0008164286). TDS has been a member of the Fujitsu Group, one of the world’s leading IT players, since 2007.





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Michael Erhard Phone +49 89 219092-120 Fax +49 89 219092-693 E-mail Internet

Date: 12 August, 2010
City: Neckarsulm