2010 ANNUAL REVENUE: +20.6%

2010 ANNUAL REVENUE: +20.6%
#Communiqués Financiers

2010 annual revenue: +20.6%

Good outlook for 2011

Bagnolet, january 27th, 2011

En M€ 2010 2009 Δ 2010 / 2009
1st quarter 27,8 22,2 + 25,6 %
2nd quarter 26,9 20,7 + 29,8 %
3rd quarter 24,6 21,9 + 12,1 %
4th quarter 28,3 24,4 + 15,9 %
Annual turnover 107,6 89,2 + 20,6 %
revenue Services 102,3 83,6 + 22,4 %
revenue Softwares 5,4 5,7 (5,2 %)

Target achieved for 2010

In 2010, Infotel generated revenue of €107.6 million (+20.6% compared to 2009), including €28.3 million for the 4th quarter (+15.9% compared to the 4th quarter of 2009).

The year was driven by dynamic growth in the Services business (+22.4%), which represented 95% of the Group’s total revenue. The acquisition of Addax (consolidated as of January 1, 2010) contributed €5.1 million to this good performance.

As Harwell Management was placed under equity as of 1 July 2010, proforma annual revenue reached €109.5 million, in line with the target that Infotel had set for 2010.

Highlights: new listings for the Services business, and continued deployment of Arcsys

In the 4th quarter, the Services division experienced sustained activity (+16.6% to €27 million) with an intercontract rate of less than 1%, for a workforce of more than 850 people (more than 1,300 people with subcontracting). The ramp-up of service centers among high-potential customers, combined with the renewal or gain of new listings, such as the partnership concluded with EADS on a European scale, reinforce the Group’s fundamentals and growth prospects.

The services related to the deployment of the archiving and dematerialization platform “Arcsys” are starting to increase.

Finally, the acquisition of Addax has enabled Infotel to strengthen its geographical coverage: with Addax, which merged in January with Infotel Conseil, the South-East region now has a turnover of €5.3 million, while the Grand Ouest, with Infotel Ouest, represents €12.8 million.

The Software division (+2.5% to €1.3 million in Q4) continued to suffer from the wait-and-see attitude of IBM customers following the announcement of the launch of the new zEnterprise mainframe series and new software versions. However, the rise in IBM sales at the end of the year gives hope for an increase in the flow of royalties over the 1st quarter of 2011.

In addition, arcsys’ growing success, which relies on the Group’s dual Software/Services competence, has resulted in significant sales to key accounts such as EDF and AXA.

Outlook 2011

Infotel has good prospects within its 2 business areas and is approaching the 2011 financial year with confidence. The Services activity benefits from a high renewal rate of its medium-term contracts, which gives it good visibility. As for the Software business, several growth drivers such as the agreement with IBM on the distribution of merge Backup software, or the commercialization of a new test support software “Infoscope Tests”, should contribute to future revenue growth.

The Group also remains attentive to any external growth opportunity that could allow it to strengthen its skills or complete its local network.

Infotel will specify its ambitions for the current financial year when the 2010 results are published.

Next appointment:
Publication of 2010 annual results: March 10, 2011 (after the stock market)

About Infotel

Listed on Compartment C of Euronext Paris since January 1999 (Isin code FR0000071797), Infotel is the specialist in the management of databases and their Web applications. At the forefront of technological innovations, Infotel develops its expertise around two complementary areas of expertise: IT services and high-tech software publishing. As part of its “Ambitions 2012” plan, Infotel has set itself two main objectives: to achieve almost all of its services in Service Centers and to become a key player in dematerialization. In 2010, Infotel had a total turnover of €107.6 million.

Michel Koutchouk Co-founder