QSC grows despite weak economyCologne, May 13, 2002. QSC AG, a professional DSL service provider in Germany, announced preliminary revenues of EUR 9.6 million for the first quarter of 2002 (first quarter 2001: EUR 5.3 million). Despite the economic downturn, which hit the IT and telecommunications market especially hard, revenues in the first quarter of 2002 were up from the previous quarter and close to double the revenues during the same period last year.
EBITDA is again better than expected. The company was able to further reduce its EBITDA-loss for the first quarter of 2002, which is projected to come in at EUR -16.5 million (first quarter 2001: EUR -22.1 million). Compared with the fourth quarter of 2001 (EUR -20.8 million), QSC reduced its EBITDA-loss by more than 20%. This improvement reflects a continued focus on strict cost management and an enhanced product mix. The proportion of revenue from high margin products continues to increase. Cash and cash equivalents as at March 31, 2002 are at around EUR 134.5 million, which compares with EUR 153.8 million as at the end of 2001. The company continued to reduce its cash outflow significantly compared with previous quarters.
QSC reiterated its guidance for the current financial year. The company projects revenues of EUR 46 to 54 million and EBITDA-losses between EUR -60 and -70 million for the year. The steadily improving cash flow reaffirms management‘s expectation to break even on EBITDA-level in the course of 2003 and on cash flow level during 2004, without further financing requirements.
Investor Relations-Partner of QSC AG
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This Adhoc annoucement 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.