Turnover for Q1 2011: + 12.5%

Turnover for Q1 2011: + 12.5%

Second quarter: +14.7%
Solid growth confirmed
Favourable forecast for 2011

Bagnolet, 28 July 2011

In €M, at 30 JuneQ1
Δ 2011 / 2010Q1 2010
pro forma*
Δ 2011 / 2010
pro forma
Half-year Turnover60.054.7+9.7%53.3+12.5%
where Services Turnover56.751.7+9.6%50.4+12.6%
where Software Turnover3.33.0+10.8%3.0+10.8%

*Q1 2010 pro forma: after deduction of the turnover of Harwell Management accounted for from 1 July 2010

The second quarter of 2011, up 14.7%, confirms the good progress made at the start of the year and points to a positive sales dynamic. The half-year turnover for 2011 rose to € 60 M, an 12.5% increase compared to Q1 2010 pro forma of € 53.3 M.

A dynamic first half: new success for Services and increase in Software

The Services division grew 12.6% to € 50.4 M and the Software division by 10.8% to € 3.3 M. Against a well-focused market, Infotel benefits from its proximity and capacity to guide customers throughout their development, both in France and increasingly abroad. In order to support this dynamic development, Infotel continues to make the recruitment and training of new graduates one of its priorities, while also recurring to expert subcontracting. During the first half, the Group proceeded to create 120 new jobs.

The Services division (94.5% of turnover) displayed a very low inter-contract rate (1.3%), clearly illustrating the dynamism of its activity. New service desks and AM centres were opened during the second quarter for Group customers present in Insurance, Pensions, and Banking or Aeronautics sectors, which has brought the Group to develop its activities beyond French borders, notably in Germany and in China. The new agency of Infotel, opened in north France at the beginning of the year, started its deployment with the prospecting of a portfolio of customers with major potential. In parallel, Infotel Business Consulting (IBC), new subsidiary of Infotel specialised in IT project management, employs around 10 people and registered progressive expansion in its activities.

The Software division (5.5% of turnover) had a high level of turnover thanks to good performance of royalties resulting from IBM sales since the end of 2010. The deployment of the Merge Backup software, officially announced by IBM in May 2011, will enable Infotel to strengthen commercial relations with IBM in the coming months. Regarding Arcsys and Infoscope Tests, the new software developed by Infotel as part of its direct commercialisation strategy, the winning of new customers continues: the archiving and dematerialisation platform Arcsys has new customers such as Almerys, subsidiary of Orange.

Forecasts: growth of activity associated with opportunistic acquisition strategy

Infotel confirms for 2011 its target of € 120 M in turnover (excluding external growth).

In parallel the Group continues a targeted external growth strategy, recently illustrated by the acquisition of the Germany company Insoft Software GmbH, expert in databases.

Insoft Software GmbH (€1 M in turnover in 2010) and Infotel are present in the same market for Db2 database software and complement each other both in product range and geographical area. As a first step, the DB/IQ software from Insoft Software GmbH and Infoscope from Infotel will be regrouped, and Infotel will embark on the distribution of its software, including Arcsys, in Germany. In the long term, Insoft Software GmbH is set to become Infotel’s international distribution platform. This strategic acquisition represents Infotel‘s desire to extend the distribution of its own products.

In 2011, the Group remains attentive to any opportunities for external growth which enable it to enrich its offering or complement its geographical network, in line with its Services/Software economic model and the group’s identity as a IT company offering proximity.

Next meeting:
Publication of half-year results 2011: 31 August 2011 (after trading)

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (ISIN code FR0000071797), Infotel is an expert in database management and web applications. At the cutting edge of technology innovation, Infotel develops its expertise in two complementary divisions: IT services and high-tech software publishing. As part of its “Ambitions 2012” plan, Infotel has set itself two major goals: perform almost all service provision from its service desks, and become a front-line player in dematerialisation. In 2010, Infotel had a turnover of € 107.6 M.