Stuttgart, 1 March 2010 – International IT company GFT Technologies AG (GFT) today announced its preliminary and unaudited financial figures for the financial year 2009. While business in the first half of the year was still marked by adverse market conditions, GFT displayed strong growth in revenue and earnings in the second half of the year. As expected, total revenue of € 216.81 million fell short of the corresponding figure from the previous year of € 236.62 million. Cyclical pressure on prices and weak demand placed a strain on earnings before taxes, which fell to € 7.86 million (€ 9.62 million). “Following a difficult start to the year, we were able to end 2009 with a strong final spurt. We were quick to adapt our portfolio of services to the challenging market environment. Demand was particularly strong for our compelling outsourcing products and pioneering banking solutions in the second half of the year. We have created an excellent base for sustainable growth in 2010,” stated Ulrich Dietz, Chairman of the Executive Board of GFT.

In accordance with IFRS regulations, the disclosed revenue and earnings figures for the first time do not include the Software division, as it is due to be sold. Consequently, total revenue of the GFT Group in 2009 amounted to € 216.81 million. Revenue was thus down 8 percent on the previous year’s figure of € 236.62 million. Whereas a total of € 158.80 million was generated in the first three quarters, revenue in the fourth quarter alone reached € 58.01 million. Progress was particularly encouraging in the Services division. In spite of the difficult conditions in the financial services sector, this segment even exceeded the high figure from the previous year of € 90.94 million with revenue of € 91.35 million. “We benefited here from our strong customer retention and succeeded in late 2009, for example, in concluding a multi-year contract for the development and maintenance of IT applications with Deutsche Bank that has laid the foundation for growth in 2010,” comments Ulrich Dietz. Once again, the Resourcing division made the strongest contribution to total revenue with € 125.45 million (prior year: € 145.68 million). The Software division generated revenue of € 4.62 million (previous year: € 5.62 million). Earnings before taxes of the GFT Group amounted to € 7.86 million (previous year: € 9.62 million).

GFT thus exceeded its revenue and earnings forecast for the financial year 2009. Including the Software division, revenue of € 220 million and earnings before taxes of at least
€ 6 million were expected. If figures for the Software division are considered, the GFT Group posted total revenue of € 221.43 million and earnings before taxes of € 6.82 million in 2009.


Outlook

In view of the rising demand for innovative IT solutions in the financial sector, the GFT Group expects to be able to continue its positive development of late 2009 also in 2010. Although market conditions remain challenging, the company expects to generate total revenue of
€ 230 million and earnings before taxes of € 8 to 9 million in the current financial year.

“We can feel that demand is picking up again in the UK and the USA, where the investment banking sector is gradually regaining stability,” explains Ulrich Dietz. “At the same time, we see a growing need for IT outsourcing services and solutions for the implementation of regulatory requirements in the banking sector. Financial institutes are also being forced to make their customer management processes more efficient and to offer new mobile banking solutions on the basis of existing innovative technologies. We see strong growth potential in this area.”


Additional key data

With its focus on the financial services sector, the Services division performed well under challenging market conditions and achieved slight growth. The segment generated revenue of € 91.35 million (previous year: € 90.94 million) and contributed € 6.21 million (previous year: € 7.60 million) to total earnings. The division had to cope with strong pressure on prices caused by the economic downturn. In the course of the year, there was increasing demand in particular for outsourcing services to help companies create more flexible cost structures.

Once again, the Resourcing division made the strongest contribution to total revenue with € 125.45 million (prior year: € 145.68 million). The fall in revenue in this segment was mainly due to weaker demand for freelance IT specialists in all sectors and countries. Low-margin Third Party Management activities suffered from the effects of the financial market crisis. The segment result amounts to € 2.75 million (previous year: € 3.03 million).

Adverse market conditions for the sale of software products impacted revenue in the Software division. At € 4.62 million, revenue was down 18 percent on the previous year
(€ 5.62 million). Measures to raise efficiency helped improve earnings before taxes from € -3.09 million in 2008 to € -1.00 million in the year under review. The sale of the Software division is due to be completed in the second quarter of 2010. In accordance with IFRS regulations, the Software division is therefore carried as “discontinued operations” in the Consolidated Financial Statements 2009. As a consequence, it is no longer disclosed in the key figures of the GFT Group.

The economic upturn and gradual return to stability in the financial sector are reflected in the revenue and earnings figures for the fourth quarter. In a more buoyant market environment, GFT was able to impress clients with its compelling range of services. In the last three months of the year under review, the GFT Group posted revenue of € 58.01 million and earnings before taxes of € 2.24 million.

Largely as a result of the growing demand in the Services divsion, the number of employees grew by 117. As of 31 December 2009, the GFT Group employed 1,144 people (previous year: 1,027); of this total, 282 (previous year: 309) were employed in Germany.

On 31 December 2009, the GFT Group held cash and cash equivalents of € 37.71 million (previous year: € 35.20 million). Net income from continued operations (without the Software division) amounted to € 6.19 million (previous year: € 7.91 million). Undiluted earnings per share from continued operations fell from € 0.30 in 2008 to € 0.23 in the year under review.