QSC's first quarter revenues exceed total revenues in 2000
Cologne, May 29, 2001. QSC AG, Germany's leading alternative provider of DSL infrastructure, generated EUR 5.3 million in sales during the first three months of the year 2001, compared to EUR 0.1 million in Q1/2000. After the first quarter, the company has already exceeded total annual revenues of EUR 5 million for the financial year 2000. A total of 10,425 DSL lines were sold by the company as at March 31, 2001 (Q1/2000: 211). Pre-tax losses of EUR 27.5 million (Q1/2000: EUR 11.7 million) were significantly below market expectations.
At the end of the first quarter in 2001, QSC had cash and cash equivalents of EUR 250.6 million and financial debts of only EUR 0.2 million.
As at March 31, 2001, QSC's DSL technology was available with almost total coverage in 46 German cities, reaching more than 20 million potential business and private users. The company's new products, QSC-business-DSL and Q-DSL, mark the starting point to penetrate the end-user market. QSC expects revenues of 38 to 46 million EUR for the current financial year, and plans the sale of 40,000 to 50,000 DSL-lines by year end.
This press release includes forward-looking statements as such term is defined in the U.S. Private Securities Litigation Act of 1995. These forward-looking statements are based on management's current expectations and projections of future events and are subject to rules and uncertainties. Many factors could cause actual results to vary materially from future results expressed or implied by such forward-looking statements, including, but not limited to, changes in the competitive environment, changes in the rate of development and expansion of alternative broadband technologies and the prices of such alternative broadband technologies, changes in government regulation, legal precedents or court decisions, among others, relating to line sharing, rent for colocation and rent for unbundled local loops, prices and timely availability of leased lines, and other matters that might have an effect on our business, the timely development of value-added services, our ability to maintain and expand current marketing and distribution agreements and enter into new marketing and distribution agreements, our ability to receive additional financing if management planning targets are not met, the timely and complete payment of outstanding receivables from our distribution partners or resellers of QSC services and products, as well as the availability of sufficiently qualified employees.
A complete list of the risks, uncertainties and other factors facing us can be found in our public reports and filings with the U.S. Securities and Exchange Commission.
Marketing & Communication Director
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Fax: +49 (0)221/6698-289
Investor Relations Partner of QSC AG
Tel.: +49 (0)89/4892720
Fax: +49 (0)89/48927212
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