#Communiqués Financiers

Revenue: +12.5%
Operating margin: 8%
Net margin: 5.6%
Confirmation of favourable outlook for 2011

Bagnolet, august 31, 2011

In M€, as at 30 June 1st qua. 2011 1st qua. 2010
pro forma*
Δ 2011 /2010
pro forma
1st qua. 2010
1st quarter 30,0 27,2 +10,4 % 27,8
2nd quarter 30,0 26,1 +14,7 % 26,9
Half-year revenue 60,0 53,3 +12,5 % 54,7
– Services revenue 56,7 50,4 +12,6 % 51,7
– Software revenue 3,3 3,0 +10,8 % 3,0
Profit from recurring operations 4,8 4,8 (0,4 %) 5,0
% of turnover 8,0 % 9,1 % 9,1 %
Net income (Group share) 3,3 3,0 + 12,4 % 3,1
% of turnover 5,6 % 5,6 %    5,6 %


* 1st week 2010 pro forma: after deduction of Harwell Management (turnover €1.37 million / ROC €0.17 million / Net income €0.12 million) accounted for as of July 1, 2010

Un 1er semestre dynamique : nouveaux succès pour l’activité Services et nouvelle progression de l’activité Logiciels

The Infotel Group achieved a dynamic first half, marked by new successes for the Services business and further growth in the Software business. Overall, half-year 2011 revenue amounted to €60 million, up 12.5% compared to a pro forma first half of 2010 of €53.3 million (after deduction of €1.37 million from Harwell Management’s equity revenue as of July 1, 2010).

The Services division (94.5% of turnover) benefited from its local positioning and its ability to support its customers in their development, both in France and, increasingly, internationally, particularly in Germany and China. Infotel’s new agency, opened in northern France at the beginning of the year, began its deployment with the prospection of a portfolio of high-potential customers. At the same time, Infotel Business Consulting (IBC), a new subsidiary of Infotel specializing in the project management of IT projects, has gradually taken over its activity. In total, the Services division grew by 12.6% to €56.7 million.

The Software division (5.5% of turnover) grew by 10.8% to €3.3 million. This high level of revenue is driven by a good performance of royalties from IBM sales, and is part of a dynamic of strengthening the partnership (deployment of merge Backup software by IBM from the 2nd half of 2011). At the same time, Infotel pursued its commercialization strategy by intensifying the deployment of its Infoscope Tests test software and its Arcsys archiving and dematerialization platform in collaboration with its ADS subsidiary.

Over the period, the Group made 120 new hires while using subcontracting in a controlled manner.

Half-year results: the choice of growth temporarily weighs on margins

Operating income was €4.8 million (equivalent to the first half of 2010 pro forma), representing an operating margin of 8.0%, compared to a pro forma operating margin of 9.1%. The choice of growth with a more intensive use of subcontracting (+17% over the half-year) temporarily weighed on margins.

Net income (Group share) for the consolidated group amounted to €3.3 million (compared to €3.0 million in the first half of 2010 pro forma), representing a stable net margin of 5.6%.

This good level of profitability is accompanied by a very solid financial situation. The Group’s equity reached €38.2 million, debt was zero, and cash at 30 June 2011 amounted to €13.7 million (compared with €17.7 million at 30 June 2010), including the payment of dividends,

the acquisition of Insoft Software GmbH (paid in cash at the end of the 1st half of the year), and a one-off mobilisation of WCR at the end of June (+€3.8 million) for the benefit of growth.

Outlook: Continued growth coupled with a targeted acquisition strategy

With a high level of activity, a still very low intercontract rate and the signing of new contracts and referrals for key accounts, the Group is approaching the second half of the year with confidence for each of the activities.

The complementarity of Services/Software, which is at the heart of Infotel’s development strategy, should enable the Group to take advantage of the momentum brought by the new software and the acquisition of Insoft Software GmbH :

With this acquisition, Infotel will expand the distribution of its software (including Arcsys) in Germany, with Insoft Software GmbH ultimately becoming Infotel’s international distribution platform for all its software.

Infotel confirms its 2011 target of €120 million in revenue (excluding external growth) and will communicate its earnings targets on 16 September (before the stock market).

Next appointment:
Publication of the updated 2011 objectives: September 16, 2011 (before the stock market)
Investor Presentation: September 16, 2011

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