S&T System Integration & Technology Distribution AG: S&T Announces Preliminary, Unaudited Group Results for 2010 and Q1 2011

Vienna (pta024/29.04.2011/15:45 UTC+2) Consolidated revenues of the S&T Group in 2010 amounted to EUR 351 million, down from EUR 385 million in the previous year. It is important to note that the subsidiaries in Ukraine and Moldova were sold in the first quarter of 2011, and thus the comparative figures for 2010 were reduced by the corresponding amounts (discontinued operations).

The profit from operations in 2010 totaled minus EUR 17 million, and includes all the restructuring measures carried out during the year. The difference between the published results 1-9/2010 amounts to minus EUR 3 million, and thus corresponds for the most part to the outlook published in December 2010.

Furthermore, S&T had to take an impairment loss on goodwill of EUR 23 million (primarily in the Business Solutions segment), of which EUR 15 million related to S&T Switzerland subgroup with the German and Swiss subsidiaries which went into bankruptcy in the first quarter of 2011.

Group EBIT thus totalled minus EUR 40 million. After deducting finance costs and the income tax expense, the preliminary net result for the year thus equaled minus EUR 49 million. On the basis of this net result as well as positive currency translation differences which do not affect profit or loss, shareholders' equity declined from EUR 33.4 million to minus EUR 13.5 million as at December 31, 2010.

Furthermore, non-cash expenditures resulting from the bankruptcies in Germany and Switzerland, e.g. the deconsolidation effects and, following deconsolidation, the write-downs of receivables from these subsidiaries (which are no longer included in the scope of consolidation) of about EUR 4- 7 million will also have to be taken into account either in 2010 or in 2011.

The above-mentioned information on the Group results for 2010 is based on audited results. As already reported, the audited results will be published on May 30, 2011. The main reason for the delay is the evaluation of the financing agreements with the required additions, and their impact on the going concern assumption as well as the final accounting treatment and assessment of expenditures relating to the above-mentioned bankruptcies.

Preliminary Results in Q1 2011

The Management Board expects revenues in Q1 2011 to amount to EUR 65.4 million, compared to EUR 82.7 million in the prior-year quarter (or EUR 72.2 million when adjusted by the main above-mentioned effects). The adjusted revenue decline of 9% is chiefly related to a revenue drop in Austria, Slovenia and Slovakia, whereas the other CEE markets showed a good performance for the most part.

Despite non-recurring restructuring expenses of EUR 1.5 million, the profit from operations in Q1 2011 amounting to minus EUR 5.4 million are close to the minus 5.9 million reported in the previous year. The considerable changes in the scope of consolidation from 2010 make any comparisons more difficult, nevertheless there is a perceptible improvement from 2010. The remaining major loss-making countries are Austria and Japan.

In most CEE markets the business of S&T is promising and proceeding predominantly positively. In contrast, the restructuring in Austria will be more far-reaching than originally planned. The development of earnings is pointing in the right direction. The Management Board considers this to be a valid basis for the intensified and already advanced discussions with investors from different parts of the world. The Supervisory Board and Management Board share the opinion that a quick participation of investors is important for the restructuring success and the realization of the positive business outlook.

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Emitter:	S&T System Integration & Technology Distribution AG Geiselbergstraße 17-19 1110 Wien Austria
Contact Person:	Mag. Michael Dvorak
Phone:	+43 1 367 80 88 1020
E-Mail:	michael.dvorak@snt-world.com
Website:	www.snt-world.com
ISIN(s):	AT0000905351 (Share)
Stock Exchange(s):	Vienna Stock Exchange