BRAIN FORCE increased revenues by 12 percent in the first half 2011/12

BRAIN FORCE HOLDING AG (Vienna Stock Exchange: BFC, Reuters: BFCG), a leading IT service company with business operations in Austria, Germany, Switzerland, Italy, the Netherlands, Czech Republic, Slovakia and the USA announces a revenue growth of 12% for the first half 2011/12 (October 1, 2011 to March 31, 2012). Herewith the company achieved a growth in revenues for the fifth consecutive quarter.

The Group’s revenues in the first half 2011/12 increased by € 3.95 million to € 37.85 million, whereby all regions reported a growth. The operating EBITDA amounted to € 0.93 million compared to € 1.10 million in the previous year, the operating EBIT of € -0.09 million was at almost the same level as previous year, when a balanced result of € 0.01 million was achieved. „After a negative result in the first three months, the operative result turned positive again in the last quarter, even above the previous year”, says Michael Hofer, CEO of BRAIN FORCE HOLDING AG. “However, the volatile business environment in some regions and license sales that decreased compared to previous year still block a more positive earnings development”, explains Michael Hofer.

In addition the result of the current business year was burdened by restructuring expenses from the first quarter. The Group EBITDA was € 0.25 million, including restructuring expense of € 0.68 million in Germany, the Group EBIT amounted to € -0.77 million.

In Germany the revenues (+2 % to € 19.00 million) as well as the operative EBITDA (+ 2% to € 0.87 million) increased. The development in Italy, with a growth in revenues by 11% to € 11.61 million and an increase of the operative EBITDA by 23% to € 0.84 million was also very positive. In the Netherlands the revenues increased by 65% to € 5.58 million, however the operative EBITDA decreased to € 0.17 million due to the below-average capacity utilization of the increased number of employees in the second quarter. In Central East Europe revenues increased by 12% to € 1.66 million, the operative EBITDA decreased from € 0.05 million in the first six months of the previous year to € 0.01 million. With an EBITDA of € -0.96 million the segment Holding and Others showed higher expenses of € 0.16 million which can be mainly related to the premature termination of the management board agreement of Mr. Thomas Melzer.

The financial result amounted to € -0.41 million in the first six months of 2011/12 compared to € -0.38 million in the previous year. The result from the associated SolveDirect Service Management GmbH (current shareholding 57.57%) amounted to € -1.03 million compared to € -1.12 million in the previous year. In total the Group achieved a pre-tax result of € -2.20 million (previous year: € -1.49 million), the loss after tax amounted to € 2.27 million compared to a loss after tax of €1.55 million in the previous year.

The goal for business year 2011/12 is a further revenue growth and an improvement of operative results. “Based on the growth rates we achieved so far and the 10% increase of the order volume, we also expect an increase for business year 2011/12. Through a strengthening of distribution and the expansion of Network Performance Channel activities as well as an increase in license sales in the remaining six months, we expect an increase in profitability and thus an improvement of operative results in the future”, recapitulates Michael Hofer.

1) adjusted for restructuring expenses