Transics publishes Q1 2009 trading results

Stable performance despite a challenging economic environment

Highlights

  • Q1 2009 revenues of €9.250 million, stable compared to Q4 2008
  • Year-on-year revenue down by 24%
  • 59,600 units-shipped mark passed
  • Important customer wins in competitive markets
  • Stable turnover in core and development markets

During Q1 2009, Transics shipped 1,913 on-board computers. Compared to the same period in 2008, unit shipments are down 49% in Q1 2009. In Q4 2008 1,815 on-board computers were shipped, representing a 5% sequential increase. The total number of Transics on-board computers shipped has now reached 59,600 representing a milestone in the company’s history.
Turnover for Q1 2009 amounted to €9.250 million, a 24% decrease compared to the same period in 2008, but stable compared to the €9.343 million achieved in Q4 2008. This contrast in performance between OBC shipments and revenues highlights how much recurring revenues and additional software services contribute to the stability of Transics’ business.

In the core markets of the Benelux and France, turnover decreased by 27% in Q1 2009 compared to the same period in the previous year (from €10.398 million to €7.552 million) but was slightly up on the €7.378 million achieved in Q4 2008. Revenues in the development markets showed a greater resilience and fell only slightly by 5% from €1.774 million in Q1 2008 to €1.698 million in Q1 2009.

During these challenging times, Transics is gaining market share

New customers represent the majority of Transics’ product shipments and the company continues to sign sizeable new contracts. Significant is that some of them were signed in the Netherlands, Europe’s most mature and most competitive FMS market. Customers wins were secured with Dutch transport companies Nabuurs Transport BV (250 trucks) and Moeijes BV (67 trucks). Both were historically customers of Transics’ competitors and were looking to upgrade to a new system. After extensive trial periods, they opted for Transics‘ high-end fleet management solution.

The outlook for 2009

“We have managed to maintain a stable level of activity for nine months now in spite of very strong headwinds. I am proud of this achievement, which testifies to the dedication of our team and the robustness of our business model. During this time, we have also focused on cost containment. As of March 2009, Transics counts 233 employees, 27 less than we had as of September 2008. Together with other cost reduction measures, this headcount reduction has enabled us to reduce our run-rate operating costs. Thanks to these efforts, I am confident that we will be able to maintain double-digit EBITDA margins,” said Walter Mastelinck, CEO. Further, Management projects that S1 2009 revenues will remain in line with the run-rate achieved during the second half of 2008. In addition, assuming there is no further deterioration in the transport sector and no recovery in the leasing market, Management anticipates the level of activity for 2009 to remain in line with the level experienced during the second half of 2008.

Transics International NV, established in 1991, develops and commercialises high-end fleet management solutions for the transport and logistics sector. Thanks to many years of experience, thorough R&D efforts and an intensive focus on the customer experience, Transics has become the leading European player in its sector. In addition to its headquarters in Ypres (Belgium), Transics is active throughout Europe. The company has been quoted on the stock exchange (Euronext Brussels) since June 2007.