Ad-hoc | 8 July 2010 13:02
REALTECH AG / Change in Forecast/Contract
08.07.2010 13:02
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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REALTECH reports structural problems in the Italian consultancy market.
At the same time, REALTECH is announcing that the company has signed a
worldwide OEM contract with SAP AG for marketing REALTECH software
products.
Walldorf, July 08, 2010. On July 2, 2010 SAP and REALTECH entered into a
software sales and development partnership with the key objective of
integrating REALTECH's IT infrastructure software into SAP's portfolio of
solutions.
The contract includes part of the existing theGuard! family of products,
which REALTECH has sold for many years, primarily in Germany.
'For REALTECH this is a confirmation both of the high quality of REALTECH's
products and also the good working partnership with SAP. The international
sales channel created as a result of this, including new consultancy
services, will move the Group - and therefore all international
subsidiaries - in a new strategic direction,' explained Nicola Glowinski,
REALTECH AG's Chief Executive Officer.
It is the intention of both partners that they will be able to offer
medium-sized SAP customers an appropriately integrated software solution by
mid-2011 at the latest.
'The software business, which to date has generated approx. 20% of revenue
worldwide, will move into a stronger position in future and make an even
more important contribution to operating income going forward,' added Dr.
Rudolf Caspary, Chief Technology Officer.
At the same time, REALTECH is reporting structural problems in the
consultancy business at the international subsidiaries in Spain and Italy,
resulting in falling revenues and earnings.
'The global economic crisis has reached REALTECH in Spain and Italy later
than elsewhere and current results and forecasts indicate that this will
result in a decline in revenues and earnings. In both subsidiaries cost
reduction programs were established,' said Nicola Glowinski.
Because of the short-term challenges in Spain and particularly in Italy and
investments in the sales partnership with SAP, REALTECH's aim of increasing
EBIT by more than 20% in 2010 and achieving moderate growth in revenues is
unlikely to be achieved.
In spite of this, the Executive Board is optimistic about the future at
REALTECH AG and believes that the 2011 fiscal year will be successful,
particularly in view of the SAP OEM partnership.
Contact:
Volker Hensel
Investor Relations
REALTECH AG
D - 69190 Walldorf
Tel.: +49 6227 837 500
Fax: +49 6227 837 9134
08.07.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: REALTECH AG
Industriestraße 39c
69190 Walldorf
Deutschland
Phone: +49 (0)6227 837-500
Fax: +49 (0)6227 837 9134
E-mail: investors@realtech.com
Internet: www.realtech.com
ISIN: DE0007008906
WKN: 700890
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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