USU Software AG: Guidance adjusted in response to project delays

(PresseBox) ( Möglingen, )
A number of major projects expected for the fourth quarter of 2018 – primarily in the United States – will most likely not be completed during the current quarter of 2018. In spite of the advanced stage of contract negotiations, the Management Board expects that the final contract awards will not be made until 2019. The Management Board has modified its planning for 2018 to reflect this development because the projects have a total license volume of €2 million to €3 million. The board now projects Group-wide sales of €89 million to €91 million. Adjusted EBIT is expected to total €4 million to €5 million.

“We have added a number of well-known customers in recent years in the United States,” said Bernhard Oberschmidt, the CEO of USU Software AG. “We are also in the process of conducting positive negotiations with new potential customers. But the formal decision-making process is taking longer than expected.”

Given the advanced nature of the negotiations, the Management Board expects that contracts for a majority of the projects will be awarded in 2019. At the same time, growth in the IT Service Management segment was significantly expanded. As a result, the target figures for 2019 include an increase in total sales to €98 million to €101 million and a rise in adjusted EBIT to €7.5 million to €10 million.
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