Trading Update
31 March 2010
Intec Telecom Systems PLC
("Intec", the "Company" or the "Group")
Trading Update
Intec (ITL.L),a global provider of business support systems solutions, provides
an update on current trading for the six months ended 31 March 2010 and the
outlook for the year.
Whilst there has been no material change to the broader macro-economic
conditions since the Interim Management Statement of 16 February 2010,
conditions in Intec's addressable markets have become more difficult in two
areas. Â In particular, the Group's markets have been impacted by increased
competition leading to pricing pressure and extended sales cycles as decision
making is deferred; this has been especially the case in the emerging markets.
 In addition to what has already been a difficult trading year, operators across
the Europe, Middle East and Africa region are tightening their budgets, some as
they approach their financial year ends. Â As a result of both these factors,
Intec has recently experienced further deferrals in the closure of a number of
key licensing deals in the first half of 2010.
Despite these adverse conditions, reported revenues across the Group's Asia
Pacific and Americas regions continue to demonstrate resilience and are
performing in line with expectations. Notwithstanding the slow-downs referred to
above and competitive pressures across the business, the Group continues to
maintain a consistent win rating for new contracts. In addition, Intec continues
to identify growth opportunities across the emerging markets, including the
Middle East, Africa, Central and Latin America and a number of territories
across its Asia Pacific region, including India.
As a direct result of delayed decisions, the Group's new orders for the
financial year to date are approximately 5% down when compared to the same
period last year; and whilst the sales order pipeline continues to provide
significant levels of coverage, it is less well advanced, creating potential
risk around the timing of the completion of contracts.
Consequently, the Group expects its first-half revenues to be approximately 10%
to 15% below market consensus and, should the current trends continue, it is
possible that the full year revenues could be similarly impacted. The first half
shortfall, which is substantially due to licence, will therefore have a direct
impact on profits.
The targeted reductions in the Group's G&A expenses are being achieved and, as
discussed at the time of the preliminary results in November, the Group
continues to invest in future revenue growth. This includes the development of
partner relationships and the continued development of its product and delivery
capability.
The Group remains focused on sales and cost management in order to maximise the
full year outcome.
The Group expects to announce its results for the half year ending 31 March
2010 on 20 May 2010.
Management will be hosting a conference call at 8.00 am BST today to discuss
this morning's announcement. For dial in details please contactintec@fd.com
<mailto:intec@fd.com>.
-ends-
Enquiries:
Intec Telecom Systems PLC www.intecbilling.com
Andrew Taylor, Chief Executive Officer +44 (0)1483 745 800
Robin Taylor, Finance Director
FD
Juliet Clarke/Haya Herbert-Burns +44 (0)20 7831 3113
About Intec Telecom Systems PLC
Intec supplies solutions to over 60 of the world's top 100 telecoms carriers,
and is one of the world's fastest growing suppliers of Business Support Systems
(BSS) solutions.
Intec's 400 plus customers include AT&T, Antel, 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 works closely with its customers, many of whom
have been with Intec since its inception, to add real value and ROI to their
business by providing the highest standards of performance, flexibility and
robustness to help communications service providers service their customers
effectively and profitably.
* Retail billing and customer management
* Multi-service mediation and activation
* Inter-carrier billing settlements including US CABS and ITU-based settlement
* End-to-end content partner management
* Optimised wholesale routing and trading
* Real-time pre/post-paid mediation and charging
* Pre-integrated solutions for wholesale, wireless and core IMS charging
functions
Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has
over 1,600 staff and 31 offices in 24 countries. For more information, visit the
Intec website atwww.intecbilling.com <
http://www.intecbilling.com/>.
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