OREANDA-NEWS. October 03, 2011. IBS Group Holding (IBSG:GR; IBSGq.DE) announces its preliminary unaudited operating results for the 1Q FY’2011 (1 April 2011 – 30 June 2011), reported the press-centre of IBS Group.

First quarter FY’2011 consolidated revenues increased by 34.3% year-over-year to USD 176.3 million from USD 131.3 million driven by increase of sales in IT Services and Software Development segments.

IT Services segment (IBS IT Services) demonstrated a 33.0% year-over-year growth, driven by the general Russian IT services market recovery.

Software Development segment (Luxoft) demonstrated a 61.8% year-over-year growth supported by the continued global demand for sophisticated software programming and engineering services.

The Online Software Delivery (Softkey) demonstrated a 5.5% year-over-year decrease, as a result of an on-going business restructuring to increase effectiveness and profitability of this segment.

As a result of its continued international expansion IBS Group’s share of revenues generated in Europe and North America increased from 30.0% to 34.3% year-over-year.  Consequently, the share of revenues generated in Russia and CIS declined by 4.3% year-over-year to 65.7% of total revenues.

The share of revenues generated in Europe increased by 5.4%, a 71.6% growth in absolute terms, due to a rapid expansion in the European markets and new development centers in the UK and Poland gaining momentum.

The share of revenues generated in North America declined by 1.1% to 9.3% year-over-year, although this geographic segment registered a 19.0% revenue growth in absolute terms.

As of 30 June 2011, the headcount of IBS Group reached 7,631 employees, an increase of 20.6% year-over-year and a 3.7% over the previous quarter. Most of the personnel growth was due to the expansion of the Software Development segment, where number of employees increased by 39.3%, to 4,560 from 3,273 a year ago, a reflection of strong demand for services provided by Luxoft.

Total debt increased by 11.7% during the first quarter. Net debt increased by 25.2% to USD 39.7 million, while long-term debt has decreased by 10.4%. Debt financing is used by IBS Group primarily to cover short-term cash requirements. Due to seasonality of revenues in the IT Services segment, where a large share of the contracts is paid for in the third and fourth calendar quarters, IBS Group has to periodically borrow funds to finance its working capital requirements. That was the main reason for the increase in the short-term debt in the first quarter.

Outlook
Today, the management of IBS Group expects consolidated revenues for the year ending March 31, 2012 to be in the range of USD 805 million - USD 820 million, compared to USD 656.0 million in the previous year. This forecast is subject to certain risks and the stated revenue goal assumes continued and growing demand for software and applications development outsourcing, continued recovery of the Russian IT services market, generally sound economic environment. 
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IBS Group is a leading software development and IT services provider in Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development, IT outsourcing, business and IT consulting, business applications implementation. IBS Group has business operations in Russia, Canada, Germany, Romania, Poland, Switzerland, the UK, Ukraine, the USA, Vietnam and Singapore. IBS Group employs more than 7,600 people worldwide. In 2010 financial year, IBS Group reported US GAAP revenues of USD 656 million.

IBS Group’s Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.DE). IBS Group is majority-owned by management with portfolio investors holding 35% of the Group’s share capital. For more information on IBS Group, please visit www.ibsgr.com.