30th Aug 2006 10:42
eServGlobal Limited30 August 2006 eServGlobal Limited "eServGlobal" or "the Company" Results for the year to 30 June 2006 Sydney, Australia - 30 August, 2006 - eServGlobal Limited (ASX:ESV & LSE:ESG), aspecialised supplier of large-scale telecoms network software and services totelecommunications carriers, today announces Preliminary Results for the year to30 June 2006. Key highlights: Financial • Record revenue of $95 million, 147% up from $38.4 million in FY05 • EBITDA of $10.088 million, 144% up from $4.131 million in FY05 (pre-IFRS) • Diluted EPS of $0.017 , up from $0.01 in FY05 (pre-IFRS) • Dividend of $0.012 per share, fully franked Operational • Completed acquisition of market-leading pre-paid recharge and messaging provider, Ferma SA • Won convergent billing project for major new Middle East quad-play carrier, showcasing eServGlobal's leadership in real-time billing control for next-generation networks • Successfully converted strong upgrade demand, resulting in the largest installed base of any independent telecoms advanced services software company Commenting on the results, Ian Buddery, Executive Chairman, said: "We are proud to have recovered momentum after a challenging first half andtaken such important steps towards consolidating the acquisition of Ferma SA andexpanding our installed base. This has created an excellent platform for thecontinuing growth we are confident we will see over the coming year." For further information please contact: eServGlobal John Hartigan, Chief Financial Officer Tel. +61 2 9364 [email protected] M:CommunicationsNick Fox Tel. +44 20 7153 1540Eleanor Wiliamson Tel. +44 20 7153 1539 Chairman's statement Sales revenue for the year was $95.004 million, compared with $38.427 million inthe previous year, a growth of 147%. The company recorded a profit after tax of$2.652 million for the year to 30 June 2006. This represents Earnings per Share(EPS) of $0.017, a strong increase over the previous year (before IFRSadjustments to FY05), despite having to carry a goodwill amortization charge of$3.164 million arising from the acquisition of Ferma SA. While Gross Profit declined to 40% (43.6% in FY05) as a consequence of thedifferent business mix introduced by the acquisition, the new lower marginrevenue element also brought with it a welcome component of stability. One ofthe core objectives of the forward business plan is a steady increase in marginswhilst maintaining current double digit revenue growth. This financial performance represents a solid full year result, highlighted bymajor new contracts and strong upgrade demand from our installed base, which isnow the largest of any independent telecoms advanced services software company. The integration of the Ferma SA business was itself a major endeavour but we nowhave a settled management team and a clear plan for FY07 and beyond. Net cash at 30 June, 2006 was $5.471 million. Our recent contract success in the Middle East, incorporating both originalproducts and new products from our recent acquisition, underlines the ability ofeServGlobal to quickly incorporate and integrate additional technologies intoour overall solution offerings. Outlook As networks converge, carriers face the challenge of managing their businessesacross a diversity of network types and media types. The increased breadth ofthe eServGlobal offering, across all layers of charging control, from paymentssystems right up to specialized network elements, ensures best value forcarriers. As telecoms carriers implement real-time business control across newconverged and quad-play networks, the trend should enable us to capture furthervalue. Ian Buddery Executive Chairman Financial Summary About eServGlobal eServGlobal (LSE:ESG & ASX:ESV) specializes in enhanced multimedia communicationservices and real-time multi-networks control solutions. Our systems enableService Providers to maximize today's proven revenue streams whilst ensuringservice continuity and new revenue opportunities when evolving to nextgeneration networks. eServGlobal solutions are designed for use in all types of networks from fixedto mobile to NGN/IMS. eServGlobal provides cost-effective and reliablemultimedia messaging delivery from voice to video mail; from SMS routing,antispam control and value-added services to instant messaging and presenceservices. eServGlobal delivers the most advanced prepaid top-up methods andreal-time rating enabling innovative marketing and prepaid-postpaid convergence Headquartered in Sydney, eServGlobal has operations in 15 countries worldwide.More than 75 Service Providers in over 50 countries are taking advantage of ouradvanced solutions and multi-network expertise to successfully address theirbusiness challenges. More information can be found at: http://www.eservglobal.com Cautionary statements Statements in this document expressing the beliefs and expectations ofmanagement regarding future performance are "forward-looking statements" withinthe meaning of the United States Private Securities Litigation Reform Act of1995. These statements are based on management's expectations as of the date ofthis document and are subject to uncertainty and changes in circumstances.Actual results may differ materially from these expectations due to risks anduncertainties including, but not limited to, uncertainty in communicationsspending, the implementation of the Company's strategic repositioning and marketacceptance of the Company's new solutions strategy, six-monthly fluctuations infinancial results, the Company's ability to exploit fully the value of itstechnology and its strategic partnerships and alliances, the availability ofproducts from product component vendors and other risks. In addition, whilemanagement may elect to update forward-looking statements at some point in thefuture, management specifically disclaims any obligation to do so, even if itsestimates change. Any reference to our website in this press release is notintended to incorporate the contents thereof into this press release or anyother public announcement. Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/2258i_-2006-8-30.pdf This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Wameja Di