|SQS Software Quality Systems AG
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
SQS Share Discussion Threads
Showing 1376 to 1398 of 1400 messages
|Forgot to add global quality assurance service market forecast to grow at 7% p.a medium term|
|Have had a little more time to do wade through the results/Co presentation and compare to prior reporting in the last few yrs and on that basis I think its worth outlining a few points.
1. Revenue growth - managed decline in professional service division is part of Co strategy (now 29% rev's but expected to decline to 25%), performance of Managed Services disappointing & combination of the two outweighed excellent growth in Management consultancy. Strategy of driving growth from higher margin MS & MC divisions seems sensible.
2. Growth in US - 3 yrs ago Co generated 2-3% of rev's from US market, now up to 16%, €56m. Target is to be largest territory in 2-3 yrs, €95m ($100m). US is the largest software quality assurance market, approx 50% of global rev's.
Given the reduced earn out liability on Galmont its fair to say that performance in the smaller of its two 2015 US acquisitions has been not at the level at which they expected. However Trissential growth has been strong although boosted by exchange rate benefits.
Co are highlighting big growth drivers such as continued US expansion & the growth of digital consulting particularly in areas such as automotive & manufacturing. The move to autonomous vehicles which require significant software (and therefore quality testing) as well as process automation in manufacturing via robotics suggests to me that SQS are far from going ex-growth despite 2016 not being a stellar year.|
|From proactive investors....
These are testing times for quality control specialist SQS Software Quality Systems AG (LON:SQS), which saw amortisation of goodwill put a dent in profits.
Profit before tax in 2016 fell to €7.99mln from €11.65mln the year before, as the company took a €5.6mln charge relating to the book value of its Galmont acquisition.
Adjusted profit before tax (PBT) rose 17.2%, however, to €24.4mln from €20.8mln the previous year, with the PBT margin hitting its highest level since the global financial crisis in the previous decade.
Total revenue rose 2.0% to €327.1mln from €320.7mln, with the top-line figure not helped by foreign exchange movements, which effectively reduced 2016’s revenue by €7.1mln.
Revenue from the group’s largest division, Managed Services, declined 4.4% to €146.4mln from €153.2mln the year before, contributing 45% of total group revenue.
The decrease in revenue was largely due to a number of products coming towards the end of their life-cycle.
The group expects its Management Consultancy (MC) arm, currently chipping in with 18% of total revenues, to be the main engine of growth as it capitalises on the growing demand for digitisation and automation.
MC revenue rose 56.6% to €57.3mln from €36.6mln in 2015.
Revenue from the Professional Services arm eased 5.9% to €93.4mln from €99.3mln the previous year, contributing around 29% of group revenue.
The group has proposed a dividend of 15 cents, up from 13 cents the year before.
"We enter 2017 with confidence,” declared Diederik Vos, the chief executive officer of SQS.
“The broader industry trends driving our business remain strong and supportive. We will continue to invest in our intellectual property and services portfolio to ensure they evolve in line with key market developments and remain relevant for future demand,” he added.
Shares were down 12% at 550.75p in mid-morning trading.|
|Above average market growth predicted at Techmarketview.com:
¨SQS is positioning itself to benefit from some of the more exciting areas across the sector, such as Artificial Intelligence, machine learning and robotic process automation (key areas highlighted in TechMarketView’s 2017 Research theme of Unlocking the Intelligence) and this should enable above market average growth for SQS, particularly given the general shortage of skills in these areas. The company’s spread of vertical capability should provide lots of opportunity for it to leverage its growing experience and reputation in these high-growth technologies.¨
|A slow growth year but chances that there is no future growth in software development and testing seem slim|
|struggling to see, thought results were solid.
Volumes aren't particularly high.|
|Anybody see any reason for the drop.|
|Hi space I too am happy with the way the business is progressing. Could be a very interesting year.|
|A very solid TS with impressive new business wins. It's hard to see the share price not progressing towards 700pps and beyond|
|sp coming alive again - looks like the half year report has been digested and impressed.|
|The point in the presentation that I liked was the increasing market share.|
|Thanks Sophie. I never cease to be impressed by the command of English demonstrated by foreigners - a very reassuring presentation by both men.|
|new video at Proactive Investors is here: http://tinyurl.com/zcy79k8|
|Totally agree SP, its a slow burner but if you've got the patience I suspect you will be handsomely rewarded in 3-5 yrs. Results presentation from Diedrick Vos on the link
, they definitely need to work on their intro music !
|Good half year report, which rather undersells itself as 'solid'. Definitely one to continue holding because it's hard to see their marketplace doing anything but growing exponentially offering rich pickings for companies with established strong reputations.|
|full value now?
SQS Software Quality Systems AG Numis
Downgrades to Add
|Interesting, as we've said it was due a steady recovery but today's movement suggests a specific prompt, presently unknown to us mere mortals.|
|Parabolic on little volume|
|sp seems to be really moving up today.|
|Heading back to £6, slowly and quietly
Edit: Occasional T Trades being worked through|
|nice to see the rebound continue - there was certainly no fundamental driven reason for the previous sharp drift; just typical general market uncertainty.|
|Read Stockdale Securities's note on SQS SOFTWARE QUALITY SYSTEMS (SQS), out this morning, by visiting hxxps://www.research-tree.com/company/DE0005493514
"SQS announced yesterday the acquisition of the outstanding 25% of SQS India, for a cash price of INR 785m (c.€10.5m) in accordance with a call option in place since 2008. The strategic merit of owning 100% of the unit is clear, and our own view, having visited the site in question last year, is that the Pune location delivers high quality and reliable testing. We..."|