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TRANSCOM REPORTS RESTATED FINANCIAL STATEMENTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2009


TRANSCOM REPORTS RESTATED FINANCIAL STATEMENTS FOR THE FOURTH QUARTER AND FULL YEAR ENDED 31 DECEMBER 2009

Luxembourg, 8 March 2010 – Transcom WorldWide S.A., the global outsourced services provider, today announced restated financial statements for the fourth quarter and full year ended 31 December 2009.

Transcom has restated its financial statements for the fourth quarter and full year ended 31 December 2009 as the Group detected mid-February that the North America & Asia Pacific region’s financial accounts for the fourth quarter, and consequently for the full year 2009, were incorrect. Mistakes and inaccurate accounting entries made by the regional CFO, and hidden by him to both the Company as well as to its auditors, led to an understatement of payroll and expense accruals in the region. The fourth quarter and full year 2009 financial statements have been corrected by adding a further €2.3 million of Cost of Sales and, as a result, reduced Gross Profit, EBITA and Operating Income in the North America & Asia Pacific region. The Group’s consolidated financial statements have also been adjusted by the same amount. The restated accounts for the fourth quarter and full year of 2009 are attached as an appendix in the attached PDF file to this press release.

Following this isolated incident, the regional CFO has been dismissed. The Company has conducted an audit of the North America & Asia Pacific region’s accounts and is confident that the errors are limited to those mentioned above. Transcom has not detected any fraud associated with these accounting errors.

Pablo Sanchez-Lozano, President and Chief Executive Officer of Transcom, said: “We would like to stress that this is an isolated incident relating to the acts of one individual in the North America & Asia Pacific region. Whilst we believe that we have the right business controls in place, we have taken additional measures to prevent such errors from being made in the future, including the daily reconciliation of operational and financial processes in the region.”

Overall, the above-mentioned accounting errors had a moderate impact both on the region’s and the Group’s overall annual financials.

RESTATED GROUP FOURTH QUARTER 2009 HIGHLIGHTS

Sequential performance
• Net revenue up 8.2% to €145.3 (€134.3) million
• Gross margin down to 21.2% (23.0%)
• EBITA down 52.6% to €3.7 (€7.8) million
• EPS down to €0.04 (€0.08)

Year-on-year performance
• Net revenue down 4.3% to €145.3 (€151.9) million
• Gross margin up to 21.2% (20.8%)
• EBITA down 30.2% to €3.7 (€5.3) million
• EPS up to €0.04 (€0.03)

RESTATED GROUP FULL YEAR 2009 HIGHLIGHTS

Year-on-year performance
• Net revenue down 11.3% to €560.2 (€631.8) million
• Gross margin up to 22.0% (20.9%)
• EBITA down 12.3% to €27.2 (€31.0) million
• EPS up to €0.28 (€0.22)

SEGMENTAL OPERATING REVIEW

Due to the restatements described above, the Company is providing a revised operating review for the North America & Asia Pacific region. Revenue in the North America & Asia Pacific region as initially reported was €34.5 million for the fourth quarter of 2009, up 27.3% (€27.1 million) and 25.5% (€27.5 million) compared to Q309 and Q408 respectively. As initially reported, the sequential increase in revenue was the result of increasing volumes with existing customers related to Q4 seasonality and the ramp-up of new clients both onshore and offshore.

The North American & Asia Pacific region now reports a restated gross margin of 22.9% in the fourth quarter. The sequential gross margin reduction was the result of ramp-up costs relating to new clients as well as changes to the business mix. EBITA was €2.2 million in the fourth quarter, down from €4.3 million in Q309 and €2.4 million in Q408.

As previously reported, the Company opened a new centre in San Antonio, Texas (USA) during the third quarter, which is now fully operational, and supports the region’s continued revenue growth. During the fourth quarter, Transcom opened a new site in Iloilo in the Philippines. The region continues to be a strong contributor to the Company’s results with key focus on driving profitable new business growth in both its onshore and offshore centres.

CONFERENCE CALL

Transcom will host a conference call to answer questions related to the restated financial statements 09:00 (CET) / 08:00 (UK). To participate in the conference call, please register at: http://www.sharedvalue.net/transcom/confcall.

Please note: for detailed tabular restated financial information, please see the full PDF version of this press release which is attached. The full PDF version is also available on Transcom's website: www.transcom.com.

OTHER INFORMATION

Notice of Financial Results
Transcom's financial results for the first quarter and three months ended 31 March 2009 will be published on 21 April 2010.

Transcom Board of Directors
8 March 2010

Transcom WorldWide S.A.
45 rue des Scillas
L-2529 Howald
Luxembourg
+352 27 755 000
www.transcom.com
Company registration number: RCS B59528

Notes to Editors
The following provides a breakdown of which countries are included in each geographical region.

- North: Denmark, Norway and Sweden
- West & Central: Austria, Belgium, Croatia, the Czech Republic, Estonia, Germany, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Romania, Serbia, Slovakia, Switzerland and the United Kingdom
- South: France, Italy and Tunisia
- Iberia: Chile, Portugal and Spain
- North America & Asia Pacific: Canada, Philippines and the United States of America

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For further information please contact:

Pablo Sanchez–Lozano, President and CEO
+352 27 755 000

Aïssa Azzouzi, CFO
+352 27 755 012

Alexandra Dahan, Investor & Press Enquiries
+46 707 768 089
alexandra.dahan@transcom.com

About Transcom
Transcom WorldWide S.A. is a leading business process outsourcer specialising in Customer Relationship Management (CRM) and Credit Management Services (CMS). We employ more than 24,000 staff across our global footprint spanning 29 markets: Austria, Belgium, Canada, Chile, Croatia, Czech Republic, Denmark, Estonia, France, Germany, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, the Philippines, Poland, Portugal, Romania, Serbia, Slovakia, Spain, Sweden, Switzerland, Tunisia, the United Kingdom and the United States of America.

The company provides specialist CRM and CMS solutions for global brands, including Fortune 1,000 companies across a wide range of industry sectors, including financial services, telecommunications, e-commerce, travel & tourism, retail, and utilities. Transcom design solutions transforming customer communication channels, including inbound communication; telemarketing and outbound; administrative tasks; credit management; web servicing; consultancy services; contract automation; legal services; and interpretation services. Our solutions enhance customer loyalty by improving the client experience from a lower operating model using our offshore support model.

Transcom WorldWide S.A. Class A and Class B shares are listed on the Nordic Exchange Mid Cap list under the symbols ‘TWW SDB A’ and ‘TWW SDB B’.
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The following files are available for download:
http://feed.ne.cision.com/client/waymaker1/f.aspx?id=1533672&fn=wkr0011.pdf Transcom Restated Q4 2009 Results