Interim 9 months FY'2007
IBS GROUP ANNOUNCES UNAUDITED US GAAP RESULTS for the 9 MONTHS of FY’2007 and FY’2007 RESULTS GUIDANCE
In the 9 months of FY’2007 the Group and its companies showed outstanding financial performance based on healthy organic growth. Growth rates of the Group business numbers for the period are significantly ahead of the respective markets growth rates.
- Consolidated Group revenue for 9 months of FY’2007 reached $803.1 mln — growth of 41% compared with the same period of FY’2006
- Effective management efforts led to outpacing EBITDA dynamics and increase in profitability
- EBITDA for 9 months of FY’2007 reached $69.4 mln — growth of 67% compared with the same period of FY’2006
- Considering the 9 months of FY’2007 results dynamics, positive results for the whole FY’2007 are expected
- According to the FY’2007 results forecast, revenue of the Group is expected to exceed $1 billion for the first time ever
1. IBS Group results for 9 months of FY’2007 (April 01, 2007 through December 31, 2007) $ mln
|
9M FY’2006 |
9M FY’2007 |
y-o-y growth | |
|
Consolidated Revenue* |
568.9 |
803.1 |
+41% |
|
EBITDA |
41.7 |
69.4 |
+67% |
2. IBS Group forecast of FY’2007 results (April 01, 2007 through March 31, 2008) $ mln
|
FY’2006 ** |
FY’2007 forecast *** |
y-o-y growth | |
|
Consolidated Revenue (unaudited) |
721.9 |
1,030 |
+43% |
|
EBITDA |
39.7 |
65 |
+63% |
|
Net income |
23.5 |
37 |
+59% |
|
EBITDA margin |
5.5% |
6.3% |
- |
|
Net income margin |
3.3% |
3.6% |
- |
* Consolidated Revenue line includes the revenue of the merged company formed as the result of the merger of IBS Company and Borlas Consulting Group (completion of the companies’ merger deal was announced in late October 2007). Borlas revenue to be consolidated for the 5 months of FY’2007 (November 2007 through March 2008).
** Audited FY’2006 results (FY’2006: April 01, 2006 through March 31, 2007).
*** The Group’s forecast of FY’2007 results (FY’2007: April 01, 2007 through March 31, 2008).
3. Forecasted FY’2007 revenue and EBITDA split by business segments
|
IBS Group business segment |
Share of the FY’2007 revenue forecast |
Share of the FY’2007 EBITDA forecast |
|
IT Services |
43.1% |
52.9% |
|
Software Development |
9.3% |
14.0% |
|
Hardware Manufacturing |
47.6% |
33.1% |
Notes: the percentages in the table above are based on the FY’2007 IBS Group revenue forecast. Borlas Consulting Group revenue to be consolidated in the IBS Group revenue for 5 months of FY’2007 (November 2007 through March 2008).
4. Results of IBS Group business segments
IT Services segment
- Revenue of the IT Services segment in the 9 months of FY’2007 was
$350.9 mln- Growth of 60% compared with the same period of FY’2006
- FY’2007 revenue forecast for IT Services segment is about $446 mln.
- Growth of 65% compared with FY’2006.
- According with the Group forecast for FY’2007 IT Services segment EBITDA is expected at about $37 mln.
- Growth of 68% compared with FY’2006.
- According with the Group forecast for FY’2007 IT Services segment EBITDA margin is expected at about 8.3%.
- FY’2006 EBITDA margin for the segment was 8.1%
Software Development segment
- Revenue of the Software Development segment in the 9 months of FY’2007 was $71.8 mln.
- Growth of 61% compared with the same period of FY’2006
- FY’2007 revenue forecast for Software Development segment is about $97 mln.
- Growth of 50% compared with FY’2006.
- According with the Group forecast for FY’2007 Software Development segment EBITDA is expected at about $10 mln.
- Growth of 27% compared with FY’2006.
- According with the Group forecast for FY’2007 Software Development segment EBITDA margin is expected at about 10.1%.
- FY’2006 EBITDA margin for the segment was 11.9%
Hardware Manufacturing segment
- Revenue of the Hardware Manufacturing segment in the 9 months of FY’2007 was $381.6 mln.
- Growth of 22% compared with the same period of FY’2006
- FY’2007 revenue forecast for Hardware Manufacturing segment is about
$493 mln.- Growth of 25% compared with FY’2006
- According with the Group forecast for FY’2007 Hardware Manufacturing segment EBITDA is expected at about $23 ìëí.
- Growth of 58% compared with FY’2006.
- According with the Group forecast for FY’2007 Hardware Manufacturing segment EBITDA margin is expected at 4.7%.
- Solid growth comparing with the segment’s FY’2006 EBITDA margin of 3.7%.
