S&T System Integration & Technology Distribution AG has reported strong sales growth in its preliminary results for the fourth quarter and full year ended December 31, 2003. It attributed the rise to services rather than hardware sales.
The Vienna, Austria-based IT services provider to the eastern and central European markets has reported that fourth-quarter earnings before interest, tax, depreciation and amortization rose by over 25% compared to the previous year’s quarter, resulting in full-year earnings before interest and tax of approximately 200,000 euros ($251,160).
This is significantly lower than the full-year 2002 EBIT of 2.56m euros ($3.21m), due to extraordinary write-offs related to the company’s several acquisitions over the year, including its Turkish subsidiary. EBIT for 2003 before these extraordinary charges would have amounted to 2m euros ($2.5m), said S&T.
Revenue for the quarter grew 38% year-on-year to 74m euros ($92.9m), with full-year sales growing by 20% to 204m euros ($256m).
Of the sales growth, CEO Karl Tantscher, said: I see this record quarter as an indication that our markets are on the upturn again following two years of stalling IT investments, and that the investment in focusing our sales force on the services business is beginning to bear fruit…Both external indicators and our own most recent market experiences point to a continued upturn in all the markets in which we are present, not least of all due to EU enlargement.
This article is based on material originally published by ComputerWire