Integralis expecting high non-recurring expense in the third quarter

(PresseBox) ( Ismaning, )
On 07 October 2009, NTT Communications Deutschland GmbH ("NTT Com") announced that it had acquired 75,19 percent of Integralis AG's shares. In connection with the successful completion of the takeover bid, Integralis will be reporting high non-recurring expense of around € 4.4 million in the third quarter of 2009. This is due to the remeasurement of deferred tax assets and payments in conjunction with the closing of the offer process. Over the last two years, Integralis AG has recognized deferred tax assets on existing unused tax losses in accordance with IFRS on the assumption that these unused tax losses would probably be available for future use. With NTT Com's entry into Integralis as a strategic partner and the acquisition of more than 50% of its capital, all unused tax losses have been extinguished under German tax law. This means that deferred tax assets of € 3.1 million previously recognized must now be reversed in accordance with IAS 12. In addition, professional fees and salaries for consultants and management staff at Integralis became due for payment upon the completion of the takeover bid. The non-recurring expense recognized in the third quarter in connection with NTT Com's takeover bid comes to around € 1.3 million and, as stated in the interim financial report, is expected to total around € 2.0 million for the year as a whole.

Furthermore, the management board of Integralis had decided to discontinue the company's activities in China, which will most likely result in an additional loss of ca. € 2.2 million. In July 2008, the company has started to build a bridgehead into China in conjunction with China Managed Services (CMS) and to finance CMS's Chinese subsidiary until it reached the break-even threshold. The plan had been for the CMS Chinese business to be taken over under the terms of an asset deal in 2009 subject to the achievement of revenue and profit targets. As the agreed goals have not been achieved, the management board took the decision, to terminate the existing contractual relationship and to call the loans granted.

The full interim report on the first nine months of 2009 will be published on 10 November 2009 as planned.
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