SQS Software Shares Slide After Profit Warning
September 08 2015 - 6:35AM
Dow Jones News
by Rory Gallivan
LONDON--Shares in SQS Software Quality Systems AG (SQS.FF) have
plunged more than 15% after the industrial-services company said
full-year results are set to fall short of its internal
targets.
The London- and Frankfurt-listed company, which gave no details
of new or previous forecasts, put the shortfall down to the lower
prices it has had charge for its testing services amid
tougher-than-expected trading conditions and increased
competition.
SQS said it will try to shore up profitability by streamlining
its roster of clients, lowering overhead costs, and eliminating
jobs.
SQS, which has headquarters in Cologne, provides services such
as security testing and risk management to customers including oil
group BP PLC (BP.LN) and car maker Volkswagen AG (VOW.XE).
Analysts at Canaccord Genuity said they are reducing their
current year adjusted profit forecast by 7% to 22.8 million euros
($25.7 million).
The company's were down down 90 pence, or nearly 16%, at 480
pence in late-morning trading in London, valuing the company at
GBP150.2 million ($229.8 million).
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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(END) Dow Jones Newswires
September 08, 2015 06:20 ET (10:20 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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