euro adhoc: S&T System Integration&Technology Distribution AG
S&T
Anticipates Q2 Results Below Expectations (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Vienna, Austria, July 16, 2003 - S&T System Integration & Technology
Distribution AG ("S&T"; Vienna Stock Exchange: SNT, OTC: STSQY,
NASDAQ Europe: SNTS), today said it anticipates significantly lower
than expected earnings for the second quarter 2003 due to
underperformance by its operation in Turkey.The prolonged depressed economic climate in Turkey after the war in Iraq led to negative results of S&T`s Turkish operation in the first two quarters 2003 with a respective negative impact on the group's results. Due to the continued underperformance of the Turkish operation, S&T's management has decided to apply an impairment adjustment of 50% of the remaining goodwill in the amount of EUR 1.1 million. The impairment adjustments and the negative contribution of the Turkish operation had a negative impact on the group results and the EBIT of Q2 is expected to be minus EUR 1.6 million. EBITA for Q2 remains still positive.
To respond to the negative development the management of S&T has decided to restructure the operation from 96 employees to 62 to minimize future costs and to maintain a sizable presence in Turkey.
As first results of these measures management said it expects to break even in Turkey during upcoming quarters. S&T's management also expects growth in the Turkish IT market and higher return of its subsidiary based on a mid term recovery of the economy in Turkey.
The detailed earnings report will be released on July 23 morning; a conference call is scheduled for the afternoon.
About S&T S&T is a leading provider of IT solutions for customers in 19 countries in Central, Eastern and Southern Europe. The company advises, develops and implements customised IT solutions and also offers round the clock service support. S&T has in-depth problem solving and service expertise for mission-critical applications with a specific concentration on the needs of large and medium-sized enterprises, in particular telecommunications companies, banks, power companies, the government and health care sectors.
end of announcement euro adhoc 16.07.2003
Further inquiry note:
Karl Tantscher
Chief Executive Officer
mailto:karl.tantscher@snt.at
Henriette Lininger
Investor and Public Relations
mailto:henriette.lininger@snt.at
S&T System Integration & Technology Distribution AG
Gunoldstrasse 16, 1190 Vienna, Austria
Phone: +43 1 367 80 88 0
Fax: +43 1 367 80 88 99
mailto:snt@snt.at
http://www.snt.at/
Branche: Computing & Information Technology
ISIN: AT0000905351
WKN:
Index: ATX Prime, NECI, ViDX
Börsen: Wiener Börse AG / official dealing
Nasdaq Europe / official dealing