Neckarsulm, Germany, 28 June 2012. - Leading IT service provider TDS Informationstechnologie AG has posted higher revenues in the 2011/2012 fiscal year (1 April 2011 to 31 March 2012), up from 131.7 million euros to 146.7 million euros, an increase of 15 million euros or 11.4 per cent. Earnings before interest and tax (EBIT) amounted to 2.2 million euros (2010/2011: -4 million euros), while the EBIT margin rose by 4.5 percentage points, from -3 per cent to 1.5 per cent. The company recorded a solid consolidated profit after tax of 376 TEUR (previous fiscal year: -5 million euros). Cash flows from operating activities brought in 14.2 million euros (compared to 19.2 million euros in fiscal 2010/11). In addition, the equity-to-total-assets ratio climbed from 49.2 to 54.6 per cent. TDS's robust growth is reflected by the number of employees: the headcount totalled 1,394 on 31 March 2012, up from 1,297 on 31 March 2011.

The segments at a glance

The IT Outsourcing segment was able to increase its revenues in fiscal 2011/2012 to 75.5 million euros - an impressive 15.7 per cent more than the year before (65.3 million euros). EBIT amounted to 6.6 million euros (preceding year: 4.8 million). At 31 March 2012, order backlog amounted to 156.2 million euros (2010/2011 fiscal: 159.3 million euros).

In the HR Services & Solutions business unit, the steps taken to improve profitability have already made an impact: EBIT margin rose by 8.2 percentage points from -15.3 in the previous fiscal to -7.1. Correspondingly, EBIT amounted to -4 million euros, up from -8.3 million euros in fiscal 2010/11. These improvements to organisational and operating processes are ongoing. The business unit's revenues rose from 54.2 million euros to 56.4 million euros. Order backlog remained almost steady at 113.1 million euros on 31 March 2012 (31 March 2011: 113.5 million euros).

The IT Consulting business unit recorded revenues of 14.8 million euros, up from 12.2 million euros. Its EBIT of -460 thousand euros generated an EBIT margin of -3.1 per cent (compared to -550 thousand euros; -4.5 per cent the previous year). The negative result can be largely attributed to increased investments in future growth areas such as in-memory computing with SAP HANA.

"In light of the overall economic situation, business development has been overwhelmingly positive," says Dr. Heiner Diefenbach, CEO of TDS AG. "The steps we have taken to return to profitability have been successful - the company is now on a firm footing. In addition, we are planning further investments at our headquarters at Neckarsulm and our other sites in Germany, Austria and Switzerland, laying the foundations for TDS' future growth."

Overall, despite the forecast economic slowdown and the European sovereign debt crisis, the Executive Board expect TDS' future business development to be stable. Owing to the costs of a one-off improvement programme in the HR Services segment, a negative result is expected in the coming fiscal year.

distributed by