IBS Group Announces its Preliminary Results for 2009 Financial Year

Jun 21, 2010, 02:43 ET from IBS Group Holding Ltd

MOSCOW, Russia, June 21, 2010 /PRNewswire-FirstCall/ -- IBS Group Holding Limited (hereinafter the "Group" or "IBS Group") announces its preliminary US GAAP results for 2009 financial year (April 1, 2009 - March 31, 2010). The Group expects to announce its audited US GAAP results for 2009 financial year in August - September 2010.

    $ million, US GAAP

                              FY'2009    FY'2008      FY'2009
                                                    vs. FY'2008

    Consolidated revenue*       504.5      656.7         -23%
                 IT Services    310.0      472.2         -34%
           (IBS IT Services)
        Software Development    149.0      119.0         +25%
    Online Software Delivery     46.5       53.2         -13%
                                 36.7       26.2         +40%
                                  7.3%       4.0           -
    OIBDA margin


    *  Revenue for both periods (FY'2008 and FY'2009) is exclusive of DEPO
       Computers (divested in September 2009).
    ** OIBDA is calculated as Operating Income Before Depreciation and

    Financial year 2009 highlights:

    - Consolidated revenue totalled $504.5 million, a 23%
      decrease from 2008 financial year. The revenue decrease was due to
      the overall decline in the Russian IT services market and
      depreciation of the rouble, which was partly offset by revenue growth
      in the software development segment.
    - OIBDA (Operating Income Before Depreciation and Amortisation)
      totalled $36.7 million, a 40% increase from 2008 financial year. The
      OIBDA growth was due to a substantial revenue growth in the software
      development segment and cost reduction efforts.
    - OIBDA margin reached 7.3%, compared with 4.0% in 2008
      financial year.
    - Net debt fell to $25.6 million as of March 31, 2010, a 41%
      decrease from March 31, 2009. The reduction of net debt was due to a
      substantial positive operating cash flow.
    - IBS IT Services (the IT Services segment) demonstrated
      improved profitability compared with 2008 due to its cost control
      efforts, while the services component of the segment's revenue
      remained almost unchanged compared with 2008 in rouble terms. In 2009
      IBS IT Services was again named Russia's top consulting company by
      "Expert" Rating Agency.
    - Luxoft (the Software Development segment) demonstrated strong
      25% revenue growth and substantially higher profitability. In 2009
      Luxoft has been named the top software development outsourcing
      service provider in Central and Eastern Europe by the Black Book of
      Outsourcing survey. The company was also named as one of the world's
      top 100 outsourcing companies for the fourth consecutive year in
      "Global Outsourcing 100" rating by International Association of
      Outsourcing Professionals (IAOP).
    - The Group successfully restructured its business by divesting
      Depo Computers, its manufacturing business, in the form of management
      buy-out in September 2009.
    - In 2009 the headcount of the Group exceeded 6,000 employees,
      which gives IBS Group the largest pool of software designers and
      engineers in Russia and the CIS.

Commenting on the preliminary 2009 results, Anatoly Karachinsky, President and CEO of IBS Group said:

"We are satisfied with the results achieved by our management team in 2009. A comprehensive range of cost control efforts and successful restructuring of the Group secured substantial profit growth. The management efforts also resulted in a significant reduction in debt. Despite a challenging market environment, we continued to execute our business strategy and are now well-positioned to benefit from the expected continued growth in demand for IT services in Russia and beyond."

About IBS Group:

IBS Group is the leading Russian IT company. Through two principal subsidiaries, IBS IT Services and Luxoft, it provides a wide variety of information technology services, such as business and IT consulting, business applications implementation, IT outsourcing and software development. IBS Group is headquartered in Russia and has business operations in Russia, Canada, Germany, Romania, Switzerland, the UK, Ukraine, the USA, and Vietnam. IBS Group employs more than 6,000 people worldwide. In 2009 financial year, IBS Group reported preliminary US GAAP revenues of $505m.

IBS Group's Global Depositary Receipts (GDRs) are listed on the Open Market at the Frankfurt Stock Exchange (Bloomberg: ZY71 GR; Reuters: ZY71.DE). IBS Group is majority-owned by management; institutional investors hold 36% of the Group's share capital.

    For more information about IBS Group:
    - Please visit http://www.ibsgr.com.
    - Please contact:

    Gamid Kostoev

    Director, Corporate Communications

    Tel:    +7-495-967-8080
    Mobile: +7-903-720-6078
    Fax:    +7-495-967-8081
    E-mail: gkostoev@ibs.ru

    Dmitry Ivanov

    Director, Investor Relations

    Tel:    +7-495-967-8087
    Mobile: +7-916-618-4034
    Fax:    +7-495-967-8099
    E-mail: dvivanov@ibs.ru

SOURCE IBS Group Holding Ltd