08.13.2009: H1 2009 Revenues


The Group posted first-half 2009 revenues of €108.4 million, up 1.3% compared to second half 2008 level and down 5.5% compared to year-ago level at same perimeter.


Outside France, the Group achieved a 11.8% growth compared with the first half of 2008, thanks to the performances of its subsidiaries in Canada, the United States, Germany, Romania and Croatia.
French revenues totaled €79.1 million, essentially unchanged from the second half of 2008 due to the timing of the defense and security programs (launch of new programs and postponement in deployment of air defense systems).
The Group registered €75.6 million in new orders during the first half of 2009, with a 15-month backlog.


Analysis by region

€ millions

H1 2008

H2 2008

H1 2009

France

88.5

80.1

79.1

International

26.2

26.9

29.3

Revenues

114.7

107.0

108.4


Analysis by operating segment

€ millions

H1 2008

H2 2008

H1 2009

Defense, Space & Security

60.3

53.8

52.8

Aeronautics, Energy & Industry

34.0

33.3

36.2

Transportation

19.4

18.9

18.3

Eliminations & other

1.0

1.1

1.1

   


Defense, Space & Security: After a slight Q1 growth, revenues growth temporarily flattened out given the timing of large-scale programs. Indeed, several contracts signed in 2008 are currently in the systems specification phase and are therefore not generating much revenues at this time. Furthermore, in the field of air defense, additional safety studies orders required by the latest regulations ESSAR (Eurocontrol safety regulatory requirement) cause a postponement of the systems deployment on air bases.

In the logistics support area, key issue for the Armed Forces, CS signed new orders extending the scope of its projects: SIGLE (Information System for the Management of Embedded Logistics for the French Navy) and operating maintenance of the Air Force’s V-UHF radio systems.
Meanwhile, the European activities benefited from the deployment of voice communications systems for air operations centers of the NATO countries, with the operational implementation of the first site at Nieuw Milligen.

CS also participated in the 2009 Coalition Warrior Interoperability Demonstration (CWID) exercises in Norway to improve the interoperability of NATO and the national C41 systems, where CS demonstrated the operational capacity of its Ecluse system for secure network connectivity. At the Paris Air Show, CS also impressed several delegations with its intelligence systems offer (SIGINT/IMINT) to detect threats, plan and conduct operations and meet the strategic challenges of knowledge and anticipation.

Aeronautics, Energy & Industry: Revenues in the aeronautics sector grown steadily (+6.7% compared to H1 2008 and +8,8% compared to H2 2008), due in particular to the strengthening of our presence within EADS Group in France and Germany. The Group is also recording increasing demand in the Simulation and Product Lifecycle Management areas, notably by winning an innovative project to implement validation and testing programs for the entire aircraft digital design cycle (Airbus “Virtual Aircraft” project). CS has also confirmed its embedded systems expertise by winning the specifications project for the hardware and software platform of the A350’s new onboard Information System.

In the Energy sector, CS improved its positioning with the French Atomic Energy Commission (CEA) when CESTA’s Military Applications department renewed the applications management contract for scientific codes. CS also won its first contract from EDF CNEN in the EPR nuclear area and extended its presence to EDF Septen to implement the nuclear power plant operations simulator. This activity also scored its first success outside France by winning a contract from Tractebel.

Transportation: This activity saw its revenues decrease slightly, but is successfully pursuing the roll-out of its projects and is taking advantage of its expertise in the free flow segment. With the opening of the toll free-flow system at the east of Vancouver, CS has once again reaffirmed its technological leadership and positioned itself as a major player for prospective projects, as for instance the Truck Road Charging System in France. CS was also awarded a contract by Cofiroute to overhaul all its toll collection equipment on the intercity network and the A86 highway.

Overview of the Group’s financial position and results

The Group had 2,244 employees at June 30, 2009, compared with 2,241 at December 31, 2008 and 2,168 at June 30, 2008. The Group recruited 129 new employees during the first half, and recorded an employee turnover rate of 5.6% (9.5% in 2008). The average utilization rate excluding vacation of billable employees amounted to 80.3% (81.8% in 2008).

The group recalled that, in accordance with its objectives, it has, on 9 June 2009, due date, repaid the entire amount of the bond of €14.85 million issued in June 2006.
In parallel and in line with its goals to keep the balance of its funding resources, CS signed on June 15 a new loan of €12 million, redeemable over 3 years.

Despite a still challenging economic climate, CS is confident that it will achieve its goals of reducing overheads and improving working capital requirements and remains focused on measures to improve its operating margin.

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H1 2009 results will be published on August 31 before the market opening.



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CS Communication & Systèmes
Barbara Goarant
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Investor relations
CS Communication & Systèmes
Hugues Rougier
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