QSC AG - Preliminary numbers for 2002 and outlook for 2003
- Revenues up by 60%, loss down 30%
- EBITDA better than planned in early 2002
- EBITDA breakeven point planned for current fiscal year
- EUR 50 MM liquidity planned for December 31, 2003
Cologne, February 18, 2002. According to preliminary results, QSC AG grew its revenues by 60% to EUR 47.0 MM for the past fiscal year (2001: EUR 29.4 MM). In the fourth quarter of 2002, the company generated revenues of EUR 13.4 MM, as opposed to EUR 9.2 MM for the comparable period in 2001.
The preliminary annual EBITDA loss amounted to EUR -59.8 MM, slightly better than forecasted in early 2002 (EUR -60 to -70 MM). The sharp 30% reduction from the EBITDA loss of EUR -85.4 MM in 2001 was essentially attributable to the company's growth of higher-margin direct revenues with business customers and its project business, as well as rigorous cost management. The EBITDA loss for the fourth quarter of 2002 stood at EUR -14.4 MM (Q4 2001: EUR -20.8 MM).
The positive development of revenues and EBITDA led to a sharp reduction in cash burn in 2002. For the seventh quarter in a row, QSC was successful in reducing its net cash outflow from ongoing activities significantly; as planned, it was reduced by EUR 2.3 MM to EUR 12.8 MM for the fourth quarter of 2002. While the year-end liquidity status was burdened by an additional EUR 2.2 MM resulting from the first tranche payment of the purchase price for the acquisition of telecommunication company Ventelo, the overall cash burn of EUR 15.0 MM in the fourth quarter still remained below the level of the third quarter of 2002 (Q3 2002: EUR -15.1 MM). As of December 31, 2002, liquid assets totaled EUR 87.6 MM.
QSC plans revenues of EUR 105 to 115 MM for the current fiscal year and a negative EBITDA of between EUR -25 and -30 MM; the company plans to reach the EBITDA breakeven point in the fourth quarter of 2003 and the cash flow breakeven point during the course of 2004. QSC is forecasting a net liquidity of around EUR 50 MM at year-end 2003. Reaching this goal requires that the planned cash burn will be reduced by an average of at least EUR 2 MM per quarter.
The second and final tranche of the purchase price for Ventelo of up to EUR 5.2 MM, will not impact the company's liquidity status until the first half of 2004.
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This Adhoc announcement 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.