Stuttgart, 11 May 2010 – GFT Technologies AG has got off to a dynamic start in its financial year 2010, posting increased revenue and earnings in the first quarter. At EUR 1.62 million, earnings before taxes were up 49 percent on the previous year (EUR 1.09 million). There was year-on-year growth in revenue of EUR 1.2 million to EUR 54.43 million. The Services division in particular benefited from growing demand in the financial services sector and reported strong year-on-year growth in revenue and earnings. “We succeeded in carrying the momentum from late 2009 into the current year and were able to profit from the ongoing recovery of our markets,” states GFT’s CEO Ulrich Dietz. For 2010 as a whole, GFT has confirmed its revenue forecast of EUR 230 million and, in view of the positive development of business, has raised its earnings forecast to between EUR 9 and EUR 10 million. “In 2010, we have the chance to achieve further sustainable growth. We expect to be able to raise revenue and earnings significantly during the course of the year.”

Earnings: significant year-on-year increase of 49 percent
As of 31 March 2010, earnings before taxes of the GFT Group amounted to EUR 1.62 million and were thus well above the prior-year figure of EUR 1.09 million. The Services segment made the largest contribution to total earnings with an amount of EUR 1.29 million. With its clear focus on the financial services sector, the division succeeded in raising its segment result by 68 percent to EUR 1.29 million (prev. year: EUR 0.77 million). The Resourcing segment accounted for EUR 0.38 million of total earnings (prev. year: EUR 0.63 million). The division suffered from the ongoing weak demand for freelance IT specialists, which left its mark on revenue and thus on the segment result.

Revenue: up on last year due to growing demand in financial sector
In the first three months of the financial year, the GFT Group generated revenue of EUR 54.43 million (prev. year: EUR 53.23 million). The increase resulted mainly from the positive development of the Services division. The segment benefited from the recovery of the financial services sector and was able to raise revenue by 22 percent to EUR 26.62 million (prev. year: EUR 21.89 million), thus contributing 49 percent to total revenue (prev. year: 41 percent). The strong increase in demand for IT solutions in the field of corporate and investment banking in the company’s core markets of the USA and UK helped boost growth. There was also stronger demand for outsourcing services, which help clients create more flexible cost structures. The Resourcing division registered cautious demand for IT freelancers in all sectors and countries during the first three months of the year. The segment generated a total of EUR 27.81 million (prev. year: EUR 31.34 million). Cost-cutting measures in the industrial sector left their mark above all on the field of Resource Management. Revenue in this area fell from EUR 16.62 million last year to EUR 13.76 million in the period under review. Projects in the financial sector enabled the company’s Third Party Management business to improve its standing in a difficult market environment. At EUR 14.05 million, revenue remained stable (prev. year: EUR 14.72 million).

Further key figures: solid balance sheet structure, increased headcount
Net income as at 31 March 2010 amounted to EUR 1.16 million and was thus EUR 0.29 million above the prior-year figure of EUR 0.87 million. Earnings per share improved to EUR 0.04 in the first quarter, compared to EUR 0.03 for the same period last year. There was a strong year-on-year increase in cash, cash equivalents and securities, which amounted to EUR 31.32 million as of the balance sheet date (prev. year: EUR 26.57 million). On 31 March 2010, the GFT Group had 1,149 employees and thus 172 more than in the previous year (977). The increase resulted from the takeover of staff as part of an outsourcing project started in late 2009 and new hirings at the company’s development centres in Spain and Brazil.

In accordance with IFRS regulations, the Software segment is not included in the present key financial figures as it is planned to sell this division.

Outlook: revenue forecast for 2010 confirmed, earnings forecast raised
“We expect a further positive development for our business in the financial year 2010,” explains GFT CEO Ulrich Dietz. “Demand for outsourcing solutions and IT projects for corporate and investment banking will continue to grow. We also see growing demand for IT applications in the field of Mobile Banking. With our centre of expertise for Mobile Finance, we are well equipped to offer clients innovative solutions to mobilise their business processes”. The continued recovery of the economy as a whole, and above all the industrial sector, is also expected to provide the Resourcing segment with a significant boost to growth in the second half of the year.

“Although the economic prospects remain uncertain, we are optimistic that we can achieve sustainable growth in 2010,” says Ulrich Dietz and adds, “the positive development of the first quarter strengthens this conviction”. The Executive Board has therefore confirmed its revenue forecast of EUR 230 million for the year as a whole. GFT has raised its forecast for earnings before taxes and now expects to achieve pre-tax earnings of between EUR 9 and EUR 10 million.