Cologne, July 15, 2004. According to preliminary results, QSC AG grew its revenues in the second quarter of 2004 by more than 10 percent to at least EUR 35.5 million compared to the preceding quarter. As a result, the nationwide telecommunication provider for business customers continued to accelerate its sequential growth, which had already stood at 6.3 percent in the first quarter of 2004. Year on year, QSC posted revenue growth of more than 25 percent over the second quarter of 2003 (EUR 28.3 million), thus clearly exceeding its own expectations for the first half of the year.
Given this highly positive development, QSC is confirming its full year forecast of at least 20 percent revenue growth, a sustained positive EBITDA for the full year 2004 and a positive free cash flow for each remaining quarter, starting with the second quarter of 2004. In light of the structural problems in the mass market for residential DSL customers, the company sees its strategy vindicated to focus primarily on the business customer segment.
Various pessimistic trading statements by alternative telecommunication carriers and providers relating to the development of the market in the second quarter have prompted QSC to report an indicative preview on the developments for the most recent quarter. The company will publish its preliminary results during the first week of August; the full quarterly report on the second quarter of 2004 will be available on August 26, 2004.
The 6 months-report of QSC AG is available starting the 26th of August at www.qsc.de. This corporate news contains forward-looking statements pursuant to the US "Private Securities Litigation Act" of 1995. 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. The assumptions that may involve material deviations due to unforeseeable developments include, but are not limited to, the demand for our products and services, the competitive situation, the development, dissemination and technical performance of DSL technology and its prices, the development and dissemination of alternative broadband technologies and their respective prices, changes in respect of telecommunications regulation, legislation and adjudication, prices and timely availability of essential third-party services and products, the timely development of additional marketable value-added services, the ability to maintain and enlarge upon marketing and distribution agreements and to conclude new marketing and distribution agreements, the ability to obtain additional financing in the event that management`s planning targets are not attained, the punctual and full payment of outstanding debts by sales partners and resellers of QSC AG, and the availability of sufficient skilled personnel.