LHS, a leading provider of telecom billing and customer care systems across the wireless, wireline, and IP telecom markets worldwide today announced its third quarter results for the period ended on 30 September 2007.
The 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:
- In the third quarter 2007, LHS revenues increased to EUR 25.3 million. This corresponds to a rise by 35.5 percent compared to the relevant quarter of the previous fiscal year. Total revenues generated in the first nine months of 2007 even rose by 48.8 percent to EUR 71.1 million. Considering this figure, LHS almost generated – already in three quarters of 2007 – the total revenue achieved in the previous business year.
- The adjusted earnings before interest, taxes, depreciation and amortization, and expenses related to stock options (adjusted EBITDA) increased by approximately 82.1 percent from EUR 3.2 million to EUR 5.7 million in the third quarter. On aggregate, adjusted EBITDA that was achieved in the first nine months of 2007 rose by 120.1 percent to EUR 14.7 million.
- The resulting rise in the adjusted EBITDA margin to 22.7 percent reflects the consistent cost management of LHS. Based on the first nine months of the 2007 business year, accumulated adjusted EBITDA margin also improved and now amounts to 20.6 percent.
- Adjusted profit for the third quarter 2007 rose by 121.7 percent and amount to EUR 3.7 million. Based on the first nine months of the 2007 business year, the accumulated adjusted profit rose by 177.7 percent and amount to EUR 10.9 million.
- In the third quarter 2007, adjusted basic earnings per share amounted to EUR 0.26 (undiluted) and EUR 0.25 (diluted) respectively. Accordingly, accumulated adjusted earnings per share amounted to EUR 0.77(undiluted) and EUR 0.74 (diluted) for the first nine months of 2007.
- In the third quarter 2007, the company managed to realize a free cash flow of EUR 5.5 million. LHS realized an increase of 232 percent compared to the third quarter 2006.
Highlights of the Operational Business
Besides the encouraging financial data described above, the dynamic development of the operational business also testifies to the successful implementation of LHS growth strategy. Important milestones in the third quarter 2007 were:
- Altogether two project contracts with new customers were signed. The number of projects realized with the only in October 2006 presented BSCS iX Release 2 version now already amounts to thirteen.
- At the end of the first quarter 2007 LHS had 123 installations compared to 119 at the end of 2006.
- In the third quarter 2007, LHS created 36 new jobs:
for example 13 jobs in the Frankfurt headquarters, two jobs in the new sales office in Madrid, four jobs in Sao Paulo, and 14 jobs in Kuala Lumpur. This corresponds to an increase of altogether 123 jobs in the first nine months of the 2007 business year. On 30 September 2007, LHS had a permanent staff of 626 employees all over the world.
Successful Business Activities
For the last quarter 2007 LHS expects this positive development with ongoing growth to continue. Wolfgang Kroh, chairman of the board of LHS, commented on the third quarter results as follows: "Our investments made in our software for billing and customer care systems continue to pay off. The results achieved for the third quarter 2007, once again, exceeded our expectations published in July 2007 for the third quarter. The excellent results are, once again, the outcome of our teams´ effort 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 dedicatedly work on realizing our targets. I would also like to thank our customers for their trust to our company."
Guidance increased
Based on the achieved results, LHS has adjusted the annual forecast for the entire business year 2007. Compared to the EUR 95 million announced at the end of the first half-year of 2007, the company now expects higher revenues amounting to EUR 97 to 98 millions. The adjusted EBITDA margin should reach a figure of about 21 percent.
Concerning the fourth quarter 2007, LHS plans to generate revenues of EUR 26 to 27 million and to reach an adjusted EBITDA margin of around 22 percent.
The quarterly report is available on the LHS website:
http://www.lhsgroup.com/...
d/home/thema.php
The 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:
- In the third quarter 2007, LHS revenues increased to EUR 25.3 million. This corresponds to a rise by 35.5 percent compared to the relevant quarter of the previous fiscal year. Total revenues generated in the first nine months of 2007 even rose by 48.8 percent to EUR 71.1 million. Considering this figure, LHS almost generated – already in three quarters of 2007 – the total revenue achieved in the previous business year.
- The adjusted earnings before interest, taxes, depreciation and amortization, and expenses related to stock options (adjusted EBITDA) increased by approximately 82.1 percent from EUR 3.2 million to EUR 5.7 million in the third quarter. On aggregate, adjusted EBITDA that was achieved in the first nine months of 2007 rose by 120.1 percent to EUR 14.7 million.
- The resulting rise in the adjusted EBITDA margin to 22.7 percent reflects the consistent cost management of LHS. Based on the first nine months of the 2007 business year, accumulated adjusted EBITDA margin also improved and now amounts to 20.6 percent.
- Adjusted profit for the third quarter 2007 rose by 121.7 percent and amount to EUR 3.7 million. Based on the first nine months of the 2007 business year, the accumulated adjusted profit rose by 177.7 percent and amount to EUR 10.9 million.
- In the third quarter 2007, adjusted basic earnings per share amounted to EUR 0.26 (undiluted) and EUR 0.25 (diluted) respectively. Accordingly, accumulated adjusted earnings per share amounted to EUR 0.77(undiluted) and EUR 0.74 (diluted) for the first nine months of 2007.
- In the third quarter 2007, the company managed to realize a free cash flow of EUR 5.5 million. LHS realized an increase of 232 percent compared to the third quarter 2006.
Highlights of the Operational Business
Besides the encouraging financial data described above, the dynamic development of the operational business also testifies to the successful implementation of LHS growth strategy. Important milestones in the third quarter 2007 were:
- Altogether two project contracts with new customers were signed. The number of projects realized with the only in October 2006 presented BSCS iX Release 2 version now already amounts to thirteen.
- At the end of the first quarter 2007 LHS had 123 installations compared to 119 at the end of 2006.
- In the third quarter 2007, LHS created 36 new jobs:
for example 13 jobs in the Frankfurt headquarters, two jobs in the new sales office in Madrid, four jobs in Sao Paulo, and 14 jobs in Kuala Lumpur. This corresponds to an increase of altogether 123 jobs in the first nine months of the 2007 business year. On 30 September 2007, LHS had a permanent staff of 626 employees all over the world.
Successful Business Activities
For the last quarter 2007 LHS expects this positive development with ongoing growth to continue. Wolfgang Kroh, chairman of the board of LHS, commented on the third quarter results as follows: "Our investments made in our software for billing and customer care systems continue to pay off. The results achieved for the third quarter 2007, once again, exceeded our expectations published in July 2007 for the third quarter. The excellent results are, once again, the outcome of our teams´ effort 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 dedicatedly work on realizing our targets. I would also like to thank our customers for their trust to our company."
Guidance increased
Based on the achieved results, LHS has adjusted the annual forecast for the entire business year 2007. Compared to the EUR 95 million announced at the end of the first half-year of 2007, the company now expects higher revenues amounting to EUR 97 to 98 millions. The adjusted EBITDA margin should reach a figure of about 21 percent.
Concerning the fourth quarter 2007, LHS plans to generate revenues of EUR 26 to 27 million and to reach an adjusted EBITDA margin of around 22 percent.
The quarterly report is available on the LHS website:
http://www.lhsgroup.com/...
d/home/thema.php
