PSI Advances as CEO Sees Very Strong First Quarter: Berlin Mover
PSI AG, a maker of software for large-network management, rose the most in more than six months after Chief Executive Officer Harald Schrimpf predicted a “very strong” first quarter.
The shares advanced as much as 6.5 percent, the steepest intraday increase since May 29 and were up 4.6 percent as of 2:50 p.m. in Frankfurt, the biggest gainer on the TECDAX index. The stock has added 7.7 percent this year, valuing the company at 247.7 million euros ($324 million). Trading volume was more than three times the three-month daily average.
PSI will post “good, but not dazzling” order intake in the fourth quarter, Schrimpf said in an interview, adding that sales in the period will exceed new orders. “We will take some new orders into January,” he said. “We will certainly see again a very strong first quarter.”
PSI is creating a joint software platform that improves the company’s efficiency and reduces costs. This will help the Berlin-based software provider meet its mid-term goal of boosting annual sales by 8 percent on average and allow it to raise its margin on earnings before interest and taxes as a share of sales by 1 percentage point to 1.5 percentage points each year to 2015, Schrimpf said.
Order intake will rise to about 200 million euros in 2013, compared with a target of 190 million euros this year, the CEO said. He views analysts’ 2012 estimates with “great calm,” Schrimpf said.
“2012 targets are confirmed which shows that the numbers might come in a bit better in the end,” Klaus Schlote, a Solventis analyst who rates the stock buy, said by telephone.
To contact the reporter on this story: Claudia Rach in Berlin at firstname.lastname@example.org
To contact the editor responsible for this story: James Ludden at email@example.com