QSC AG IR Newsfeed

QSC increases profitability in first quarter of 2013

Mon, 13 May 2013 07:30:00 +0200

EBITDA margin improves by 2 percentage points to 17 percent
Consolidated net income of € 5.1 million more than doubled
Revenues of € 113.0 million below previous year’s level due to regulatory effects
QSC reiterates guidance for full fiscal year after its good start to the year

Cologne, May 13, 2013. QSC got off to a good start in fiscal 2013, benefiting from significant growth of its ICT business as well as from temporarily higher demand for IP-based voice products. On the other hand, revenues in conventional TC business declined; heightened regulation since December 1, 2012, alone, is resulting in revenue shortfalls of between € 7 and € 8 million per quarter during the current fiscal year.

Overall, QSC generated revenues of € 113.0 million in the first quarter of 2013, compared to € 116.0 million for the same quarter one year earlier. While predominantly conventional TC revenues with resellers decreased by 29 percent to € 31.9 million as a result of regulatory and market effects, there was a rise in ICT revenues in the two other business units. Revenues in Direct Sales rose by 20 percent to € 50.6 million. Revenues in Indirect Sales increased by 6 percent to € 30.5 million due to, among other things, temporarily higher demand for voice products. QSC Chief Financial Officer, Jürgen Hermann, who will succeed Dr. Bernd Schlobohm as Chief Executive Officer on May 30, 2013, notes: “Our focus on the ICT market is paying off. We are achieving significant revenue growth here and winning further customers each quarter.” During the past quarter, sporting goods retailer SportScheck and power grid operator Nowega, among others, opted for QSC.

Concentrating on ICT business affords higher earnings

QSC’s focus on ICT business played a major role in enabling the company to increase its profitability in the first quarter of 2013. EBITDA rose from € 17.5 million in the first quarter of 2012 to € 18.9 million, while the EBITDA margin increased by 2 percentage points to 17 percent. Consolidated net income reached € 5.1 million, by comparison with € 2.3 million for the same quarter the year before. Free cash flow of € 5.1 million, on the other hand, remained slightly below the previous year’s level of € 5.8 million, as QSC needed to increasingly invest in connecting new customers and new products. Given this backdrop, capital expenditures (capex) increased to € 9.8 million in the first quarter of 2013, compared to € 8.7 million for the comparable quarter the year before.

Significant growth planned in ICT business

Given its good start to the current year, QSC is reiterating its guidance for the full fiscal year. The company is planning an EBITDA margin of at least 17 percent and a free cash flow in the amount of at least € 24 million on revenues of at least € 450 million. Operating business will continue to develop on a two-track basis: Sharply rising ICT revenues will be offset by declining conventional TC revenues, especially in the Resellers Business Unit. Numerous decisions by the German Federal Network Agency that were made in the autumn of 2012 will additionally burden TC business: In fiscal 2013, this alone will result in a revenue shortfall of some € 30 million in TC business and will reduce EBITDA by € 3 to € 4 million by comparison with the year before.

Jürgen Hermann stresses: “The effects of heightened TC regulation show how important it is for QSC to evolve into a full-fledged ICT provider. The lower the revenue percentage of legacy TC business is, the more apparent our company’s progress in the ICT market will be.” At CeBIT 2013, the company debuted its first modular solution for the Cloud workplace, QSC-tengo, which will simplify migration to the Cloud age, especially for small and mid-size enterprises. With a view to this innovation, in April 2013 market researcher Experton named QSC the “2013 Cloud Leader” in not just one but two categories. Hermann: “In the coming quarters, too, we’ll be investing in new products, new customers and new people, thus putting in place the foundation for profitable growth in the coming years.”

In € million	Q1 2013	Q1 2012
Revenues	113.0	116.0
EBITDA	18.9	17.5
EBIT	6.3	4.0
Consolidated net income	5.1	2.3
Free cash flow	5.1	5.8
Capital expenditures (capex)	9.8	8.7
Workforce	1,565	1,366

Notes:
The 3-month report is available for download at www.qsc.de/en/qsc-ag/investor-relations.html. This corporate news contains forward-looking statements. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de

Barbara Stolz appointed new CFO at QSC AG

Wed, 20 Mar 2013 11:45:00 +0100

Cologne, March 20, 2013 – In its meeting yesterday, the Supervisory Board of QSC AG appointed Barbara Stolz (44) Chief Financial Officer of QSC AG effective June 1, 2013. She thus succeeds CFO Jürgen Hermann, who will become the company’s Chief Executive Officer effective May 30, 2013.

Barbara Stolz has headed up the entire Finance operation at QSC AG since September 2009, and following the acquisition of IP Partner AG in late 2010 additionally served as this subsidiary’s chief financial officer, where her responsibilities included integrating the company into the QSC Group. Stolz had joined QSC AG in 2005 as the head of Accounting after she had previously gathered extensive professional experience at such companies as IVG Immobilien AG and Metro AG.

“I not only value the broad scope of professional expertise that Barbara Stolz possesses, but also her in-depth knowledge of both the internal processes as well as the products and services of the QSC Group,” notes Jürgen Hermann. QSC AG Supervisory Board Chairman Herbert Brenke stresses: “Barbara Stolz enjoys my complete confidence. I am sure that she will play an extremely competent and constructive role in helping to develop QSC into a full-fledged provider of ICT services.”

About QSC

QSC – ICT solutions for small and mid-size enterprises
Cologne-based QSC AG offers small and mid-size enterprises one-stop shopping for an extensive range of ICT services: from telephony, data transfer, Housing and Hosting right through to IT Outsourcing and IT Consulting. With its companies INFO AG, a full-line provider of IT services headquartered in Hamburg, and IP Exchange, a Housing and Hosting specialist headquartered in Nuremberg, the QSC Group numbers among the leading mid-size providers of ICT and cloud services in Germany. QSC offers custom-tailored solutions for individual ICT needs, as well as a comprehensive product portfolio for customers and marketing partners that can be modularly adapted to suit the communications and IT needs in question. QSC offers its services on the basis of its own Next Generation Networks (NGN) and operates an Open Access platform, which unites a wide range of broadband technologies. QSC AG employs a workforce of just under 1,500 people and is listed on the TecDAX index.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
E-mail: invest@qsc.de

QSC planning higher dividend following successful 2012

Mon, 04 Mar 2013 08:00:00 +0100

Cologne, March 4, 2013. In fiscal 2012, the QSC Group made great strides as it traveled the road toward becoming a full-fledged ICT provider, and was able to conclude a portion of the preparations required for this earlier than had originally been planned. With revenues of € 481.5 million, an EBITDA margin of 16 percent and a free cash flow of € 23.6 million, the company attained its targets, according to preliminary calculations. Given QSC's sustained strong financial position and profitability, the Management Board will propose to the Annual Shareholders Meeting that the dividend be raised by 1 cent to € 0.09 per share. This is the dividend that QSC also views as the minimum for the coming years.

Highest level of new orders in the company's history

With Direct Sales posting new orders valued at € 193.1 million during the past fiscal year, the QSC Group recorded the highest order backlog in its history. The majority of these new orders consist of multiple-year contracts for major Outsourcing projects - a visible manifestation of the company's successful transformation into a full-fledged ICT provider. The development of revenues in the business units demonstrates the dynamic of this transformation process: Revenues in Direct Sales, which together with Indirect Sales covers ICT business, rose by 24 percent in 2012 to € 187.9 million; Indirect Sales gained 3 percent to € 125.1 million. On the other hand, revenues with resellers, who cover TC business, decreased by 18 percent in 2012 to € 168.5 million. Overall, the QSC Group grew its revenues by 1 percent during the past fiscal year to € 481.5 million, according to preliminary calculations.

A comparison of EBITDA margins, too, underscores the importance of the transformation process. In 2012, the QSC Group earned an EBITDA margin of 14 percent in Direct Sales, in spite of considerable investments in future growth and the recruitment of some 150 additional people; and Indirect Sales, which had already been more industrialized, earned an EBITDA margin of 27 percent. The EBITDA margin with resellers, on the other hand, stood at 11 percent - and the trend is downward. Overall, QSC earned an EBITDA margin of 16 percent in 2012; as a result of investments in future growth, as well, the company's EBITDA for 2012 amounted to € 77.9 million, according to preliminary calculations, in contrast to € 79.9 million the year before. Earnings before taxes totaled € 20.7 million, as opposed to € 23.4 million in fiscal 2011. Given the company's sustained profitability, the Management Board will propose to the Annual Shareholders Meeting on May 29, 2013, that the dividend be increased by 1 cent to € 0.09 per share.

Outlook for 2013: Stronger financial position and greater profitability

The current fiscal year will be characterized by a two-track development of operative business at the QSC Group: Significantly rising ICT revenues will again be offset by further declines in TC revenues. Moreover, various rulings by the German Federal Network Agency that were made in the autumn of 2012 will result in an additional year-on-year shortfall of some € 30 million in TC business. In November, the German Federal Network Agency had lowered mobile termination fees by 45 to 47 percent and fixed-network termination fees by 20 to 40 percent, while also modifying the fee structure.

Given this backdrop, QSC is planning on overall revenues of at least € 450 million for fiscal 2013. In spite of declining revenues, QSC anticipates higher profitability and a stronger financial position: The EBITDA margin in 2013 is likely to rise to at least 17 percent, with an increase of at least € 24 million planned for free cash flow. "Our strategy is working," states QSC Chief Financial Officer Jürgen Hermann, who will succeed Dr. Bernd Schlobohm as Chief Executive Officer on May 30, 2013. "Step by step, QSC is withdrawing from TC business and participating in the growth of the ICT market. In fiscal 2013, we will be bringing further in-house Cloud product developments to market, winning additional Outsourcing projects and thus strengthening our position in the ICT market. In doing so, we are creating a good foundation for achieving our Vision 2016!" The QSC Group has its sights set on revenues of between € 800 million and € 1 billion for fiscal 2016, along with an EBITDA margin of 25 percent and a free cash flow of between € 120 and € 150 million.

In € million	2012	2011
Revenues	481.5	478.1
EBITDA	77.9	79.9
EBIT	24.6	26.2
EBT	20.7	23.4
Free cash flow	23.6	41.0
Net liquidity*	35.2	24.1
Capital expenses	37.0	35.6
Workforce*	1,485	1,334

* As of December 31

Notes:
The 2012 Annual Report will be available for download at www.qsc.de/en/qsc-ag/investor-relations.html from March 28, 2013. This corporate news contains forward-looking statements. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
E-mail: invest@qsc.de

QSC founders increase shareholdings

Fri, 01 Feb 2013 10:09:00 +0100

Cologne, February 1, 2013 - QSC AG's two founders, Gerd Eickers and Dr. Bernd Schlobohm, have each acquired 1,575,000 QSC shares at a price of € 2.25 per share over the counter, thus again strengthening their shareholdings. Eickers now holds 12.6 percent of QSC shares, Schlobohm 12.5 percent. Neither of these founders has ever sold a single share since QSC went public in the year 2000. Schlobohm has this to say about his decision to purchase additional shares: "The company is paying an attractive dividend and has set ambitious goals for itself with its Vision 2016. I am convinced that the company will be able to raise its revenues to between € 800 million and € 1 billion by 2016, while further strengthening its profitability and financial position. This opens up considerable appreciation potential for these shares." Eickers confirms: "As I see it, QSC is a solid investment."

Bernd Schlobohm had founded QSC in 1997 together with Gerd Eickers, taking the company public in April 2000. After 13 years as Chief Executive Officer, he recently requested that the Supervisory Board not extend his term of office beyond the Annual Shareholders Meeting that is planned for May 29, 2013. The Supervisory Board complied with this request at its meeting on January 22, 2013. Schlobohm now has his sights set on moving to the Supervisory Board, where he would like to continue to play an active role in helping to shape QSC's strategic development. Eickers has been a member of the Supervisory Board since QSC AG went public, with the exception of one interruption: From January 2001 through December 2003, he served on the Management Board where he was responsible for the areas of customer service, order management and regulatory affairs.

About QSC

QSC - ICT solutions for small and mid-size enterprises
Cologne-based QSC AG offers small and mid-size enterprises one-stop shopping for an extensive range of ICT services: from telephony, data transfer, Housing and Hosting right through to IT Outsourcing and IT Consulting. With its companies INFO AG, a full-line provider of IT services headquartered in Hamburg, and IP Exchange, a Housing and Hosting specialist headquartered in Nuremberg, the QSC Group numbers among the leading mid-size providers of ICT and cloud services in Germany. QSC offers custom-tailored solutions for individual ICT needs, as well as a comprehensive product portfolio for customers and marketing partners that can be modularly adapted to suit the communications and IT needs in question. QSC offers its services on the basis of its own Next Generation Networks (NGN) and operates an Open Access platform, which unites a wide range of broadband technologies. QSC AG employs a workforce of nearly 1,500 people and is listed on the TecDAX index.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de

QSC AG: Hermann to succeed Schlobohm as CEO and Schlobohm to seek a position in the Supervisory Board

Tue, 22 Jan 2013 15:30:00 +0100

Cologne, January 22, 2013 - In view of the scheduled conclusion of his term of office as Chief Executive Officer of QSC AG on April 30, 2013, Dr. Bernd Schlobohm has requested that the Supervisory Board of QSC AG not extend his term of office beyond the company's Annual Shareholders Meeting planned for May 29, 2013. The Supervisory Board today voted to comply with this request. Bernd Schlobohm wishes to continue to play a role in helping to shape QSC's strategic development, and is seeking a seat on the Supervisory Board of QSC AG. Schlobohm founded QSC in 1997, and through the recent acquisitions of IP Partner AG and INFO AG has laid the foundation for QSC's successful future as an integrated ICT provider.

The Supervisory Board today appointed Jürgen Hermann to succeed Bernd Schlobohm as the company's new Chief Executive Officer effective May 30, 2013. Jürgen Hermann began his career at QSC back in 1997 and has been the company's Chief Financial Officer since 2009. He intends to conclude the integration process and to sustain the strategy of the QSC Group.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de

QSC AG: Hermann to succeed Schlobohm as CEO

Tue, 22 Jan 2013 15:00:00 +0100

Jürgen Hermann appointed Chief Executive Officer of QSC AG effective May 30
Bernd Schlobohm to seek a position in the Supervisory Board of QSC AG

Cologne, January 22, 2013 – In view of the scheduled conclusion of his term of office as Chief Executive Officer of QSC AG on April 30, 2013, Dr. Bernd Schlobohm has requested that the Supervisory Board of QSC AG not extend his term of office beyond the company’s Annual Shareholders Meeting planned for May 29, 2013. The Supervisory Board today voted to comply with this request.

Bernd Schlobohm explains his decision this way: “The foundation has been laid for QSC’s successful future as a leading ICT provider in Germany. We achieved our corporate goals in 2012: We have significantly advanced the integration of IT companies INFO AG and IP Partner AG into the QSC Group. Today, QSC already possesses an innovative portfolio of ICT products and solutions, as well as a close-knit network of strong distribution partners for the ICT market. In the third quarter of 2012, we recorded the highest level of new orders in our history. With our in-house product developments that relate to the workplace of the future, we are operating in the growth market for Cloud services. Our planned products for energy management from the Cloud offer strong potential as well. I am convinced that we will achieve our vision of generating revenues of between 800 million and one billion euros in 2016.”

As a co-founder and co-owner, Bernd Schlobohm wishes to continue to play an active role in helping to shape QSC’s strategic development, and would therefore like to move to QSC’s Supervisory Board. “QSC is my life’s work. I want to continue to accompany this enterprise by helping to set the stage for the future. This is where I see my strengths and my mission,” is the way Schlobohm explains this wish.

Schlobohm had founded QSC together with Gerd Eickers back in 1997, initially as a consulting company, taking it public in April 2000. Since that time, Schlobohm has served QSC as its Chief Executive Officer. Under his leadership, the company built Germany’s first alternative nationwide DSL network, was the first telecommunications provider to modernize the network into an IP-capable Next Generation Network, was a pioneer in bringing IP-based voice products to market, and established itself as a TC provider for small and mid-size German companies. With the acquisition of IP Partner and INFO AG, Schlobohm strengthened the company’s IT competence and transformed the Group into an integrated IT and TC provider with a workforce of nearly 1,500 people, generating revenues of between € 480 and € 490 million in fiscal 2012.

Today’s decision by the Supervisory Board appoints Jürgen Hermann, currently Chief Financial Officer of QSC AG and Chief Executive Officer of INFO AG, to serve as his successor effective May 30, 2013. Jürgen Hermann began his career at QSC back in 1997 and headed Finance at QSC AG for nine years before being appointed Chief Financial Officer in 2009. All acquisitions were executed smoothly under his leadership; network operating company Plusnet was formed under his guidance, and his prudent financial policy developed QSC into a dividend-paying equity with a high level of equity capital and a minimum of debt.

“We not only value Jürgen Hermann as an outstanding Chief Financial Officer, but also as a leader who understands how to resolutely drive change processes, yet with the requisite sensitivity. He will conclude the process of integrating INFO AG, IP Partner and QSC and forming the Group into one single company. Jürgen Hermann stands for transparency and goal orientation. Strategic continuity is assured,” is the way Herbert Brenke, Chairman of the Supervisory Board of QSC AG, explains the reasoning behind the Board’s decision.

Bernd Schlobohm stresses: “During my entire tenure as Chief Executive Officer, Jürgen Hermann was one of my most important sparring partners and colleagues in connection with all decisions. As Chief Executive Officer of INFO AG, he achieved double-digit growth rates while simultaneously executing major restructurings.”

Jürgen Hermann thanks the Supervisory Board for the trust it has placed in him: “I view this decision as both an enormous demonstration of trust and an obligation. Bernd Schlobohm is a full-blooded entrepreneur. I very much welcome his making himself available as a candidate for election to the Supervisory Board. As an integrated ICT provider for small and mid-size German companies, QSC operates in a very exciting growth market. And I am very excited about the task of forming QSC into a leading player in the ICT industry.”

About QSC

QSC – ICT solutions for small and mid-size enterprises
Cologne-based QSC AG offers small and mid-size enterprises one-stop shopping for an extensive range of ICT services: from telephony, data transfer, Housing and Hosting right through to IT Outsourcing and IT Consulting. With its companies INFO AG, a full-line provider of IT services headquartered in Hamburg, and IP Exchange, a Housing and Hosting specialist headquartered in Nuremberg, the QSC Group numbers among the leading mid-size providers of ICT and cloud services in Germany. QSC offers custom-tailored solutions for individual ICT needs, as well as a comprehensive product portfolio for customers and marketing partners that can be modularly adapted to suit the communications and IT needs in question. QSC offers its services on the basis of its own Next Generation Networks (NGN) and operates an Open Access platform, which unites a wide range of broadband technologies. QSC AG employs a workforce of nearly 1,500 people and is listed on the TecDAX index.

Queries to:
QSC AG
Arne Thull
Head of Investor Relations
Phone: +49 221 6698-724
Fax: +49 221 6698-009
E-mail: invest@qsc.de
Internet: www.qsc.de