SQS Software Quality Systems AG (SQS.L) issued an update on trading for the year ended December 31, 2011.
The company stated that revenues for 2011 will be slightly ahead of consensus forecasts owing, in the main, to a strong performance from its Managed Services business which accounted for above 20% of revenues in 2011.
SQS Software noted that during 2011, it did not recover some additional transition costs, not expected to exceed 2 million euros, relating to two earlier Managed Service contracts, which are expected to result in a profit before tax below analysts' forecasts for the period.
Managed Services order intake exceeded 62 million euros in 2011 and is in line with the company's stated strategy of building the Managed Services business to account for 50% of revenues by 2014.
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