Interim Management Statement
Intec Telecom Systems
Interim Management Statement
London:Â August 19 2010 - Intec, one of the world's leading providers of
Business Support System (BSS) solutions, reports its Interim Management
Statement for the period from 1 April 2010 to 19 August 2010.
Market conditions remain difficult as reported at the time of the announcement
of the Company's half year results on 20 May and have led to extended sales
cycles. Budget constraints continue to impact the scope and timing of projects,
creating increased risk as customers adjust their requirements to the economic
conditions. Despite this, our win rates continue to exceed 50%.
As in prior years, and as at the half-year, a material number of licence deals
are forecast to close late in the reporting period, leading to a broad range of
possible financial outcomes for the year.
Illustrative of the impact of budget constraints, a major non-traditional
customer won in 2009, has purported to terminate a contract with the Company for
the implementation of an integrated solution. Intec believes there are no
grounds for termination and will rigorously pursue its rights for performance of
the contract. The implementation had been scheduled to be completed in the 2010
financial year. Despite the Company's belief that there is no legal
justification for the customer's actions, we have assessed the maximum
theoretical exposure to 2010 profits to be approximately £4.1m. This contract
is the only contract Intec has with this customer.
The outlook for 2011 indicates that conditions are no longer worsening and,
combined with the substantial cost cuts successfully implemented during the
summer as announced at the half year, leads us to a more optimistic view for
next year.
Intec's balance sheet is strong and the Group paid out its first interim
dividend to shareholders on 12 July 2010.
Discussions with the potential offeror, as notified on 26 July 2010, are
continuing. As previously stated, there can be no certainty as to whether any
offer will be forthcoming nor as to the level at which any offer might be made.
Enquiries:
Intec Telecom Systems PLC www.intecbilling.com
Andrew Taylor, Chief Executive Officer +44 (0)1483 745 800
Robin Taylor, Chief Financial Officer
FD
Juliet Clarke/ Charles Palmer +44 (0)20 7831 3113
About Intec
Intec supplies solutions to over 60 of the world's top 100 telecoms operators,
with a vision to become the world's most trusted supplier of BSS (Business
Support Systems) solutions.
Intec's many customers include:Â AT&T, Aircel, Asia Pacific Telecommunications,
Best Buy, Bharti, Cable & Wireless, Celcom Axiata, China Mobile, China Unicom,
Claro, Cox Communications, Deutsche Telekom, Digicel, Eircom, Exatel, France
Telecom, Grameenphone, Hutchison 3G, Nextel, O2, Orange, Qualcomm, Reliance,
SingTel Optus, T-Mobile, Talk Talk, TerreStar, Telefonica, Telekom Malaysia,
Telecom New Zealand, US Cellular, Verizon, VimpelCom, Virgin Mobile, Vivo and
Vodafone.
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 operators service their customers effectively and
profitably.
Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has
around 1,600 staff and a presence in 24 countries. For more information, visit
the Intec website at www.intecbilling.com
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Source: Intec Telecom Systems Plc via Thomson Reuters ONE