Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Suresh Sambandam

News Feed Item

Trading Update for the Third Quarter 2012

EINDHOVEN, The Netherlands, November 12, 2012 /PRNewswire/ --

This press release contains unaudited financial information.

  • Turnover: Eur 12.9 million in Q3 2012 versus Eur 12.6 million in Q3 2011 (+2.3%);
  • Gross margin excluding subsidies: Eur 4.2 million in Q3 2012 versus Eur 4.3 million in Q3 2011 (-2.8%);
  • Operating result: Eur 1.6 million in Q3 2012 versus Eur 1.8 million in Q3 2011 (-13.0%);
  • Headcount at the end of Q3 2012 506 versus 463 at the end of Q3 2011;
  • Headcount increase of 4 in Q3 2012 versus 8 in Q3 2011.

"The continued uncertain economic climate in 2012 has had an adverse impact on the Group results compared to a very strong 2011. Especially the Member Companies TMC Construction and TMC ICT are operating in a challenging market environment, with no evidence indicating a turnaround in the near term. The Member Company Technology is showing continued growth with a stable increase in the number of Employeneurs. However, overall market conditions and governmental policies have put pressure on margins resulting in reduced profitability."

Rogier van Beek, CEO/CFO

Offer by Time Acquisition B.V. for TMC Group N.V.

This press release is issued in view of the press release dated 12 November 2012 issued by Time Acquisition B.V. and TMC Group N.V. confirming commencement of the recommended all-cash public offer by Time Acquisition B.V. for all issued and outstanding shares in TMC and in addition confirming the availability of the offer memorandum prepared in the context of the offer (available at http://www.tmc.nl). The contents of this press release will be replicated in the offer memorandum.

Developments in the third quarter

In the third quarter revenues increased modestly (+2.3%) compared to the same quarter in 2011. The average number of direct FTE's increased by 9.0% to 488.4 in Q3 2012 compared to 448.0 in the same period in 2011. Despite the increase in FTE's, the average revenue per FTE decreased compared to the same period in 2011 due to the fact that productivity and tariffs showed a negative trend and decreased compared to prior year.

Gross margin increased by 2.1% compared to the same period last year to Eur 4.4 million. The gross margin excluding subsidies decreased with 2.8% compared to the same period in 2011. This decline is the result of decreasing average sales per FTE and higher personnel costs. Social security and pension costs increased on average with 13.6% per FTE, caused by an increase of the thresholds for maximum income assessable for social insurance under the Healthcare Insurance Act and the related employer's contributions. Gross margin including subsidies of Eur 4.4 million increased by 2.1% compared to the same period last year. In Q3 2012 subsidies amounted to Eur 208 thousand compared to nil subsidies in Q3 2011. Overall subsidies are lower in 2012 as compared to prior year.

Total indirect costs amounted to Eur 2.8 million compared to Eur 2.5 million in the same period 2011, an increase of 13.3%. The increase is predominantly attributable to higher personnel costs. At the same time non-personnel indirect costs also increased.

Indirect personnel related costs increased with 16.9%, related to an increase in indirect personnel and the increase in social security and pension charges. The average number of indirect FTE's in Q3 2012 ended at 65.8 compared to 61.3 in Q3 2011, an increase of 7.3%. The indirect non-personnel related costs increased with 6.6% mainly due to increased marketing and consultancy costs.

The operating result in the third quarter of 2012 decreased with 13.0% to Eur 1.6 million (Eur 1.8 million in Q3 2011). The operating result as a percentage of the revenue was 12.3% in Q3 2012 compared to 14.5% in the same quarter last year. Depreciation and amortisation in Q3 2012 was Eur 0.1 million (Q3 2011: Eur 0.1 million) resulting in EBITDA of Eur 1.7 million (Q3 2011: Eur 2.0 million), a decline of 12.8% year-on-year.    

Developments per Member Company

TMC Technology

The revenues of the Member Company Technology increased by 4.7% to Eur 11.1 million in the third quarter of 2012 (Eur 10.6 million in Q3 2011). The increase in revenues is a direct result of the increase in FTE's as TMC Technology at the same time was faced with lower productivity and lower tariffs. The average number of direct FTE's for the Member Company Technology increased with 11.6% to 423.5 (379.6 in Q3 2011).

The gross margin declined from 35.9% in Q3 2011 to 33.5% in Q3 2012. The total direct personnel costs increased with 8.5% as a result of a higher number of direct FTE's and increased social security and pension costs. The direct bonuses decreased with 14.8% due to a lower number of billable hours.

For Q3 2012 indirect costs excluding allocated corporate costs were Eur 969 thousand versus Eur 777 thousand last year, an increase of 24.8%. The average number of indirect FTE's went up from 35.4 in Q3 2011 to 37.5 in Q3 2012 (+5.9%). The indirect cost increase is mainly due to higher personnel related costs such as salaries, social security costs and pension costs.

The operating result excluding allocated corporate costs was Eur 2.7 million in Q3 2012 compared to Eur 3.0 million in Q3 2011 (-9.0%).

TMC ICT

Revenues dropped by -19.9% in Q3 2012 versus Q3 2011 and ended at Eur 693,000. The average number of direct FTE's in Q3 2011 was 22.5 and decreased to 18.8 in Q3 2012 (-16.4%). In addition to the decrease in FTE's there remains pressure on commercial tariffs. The number of billable hours has decreased compared to the same period in 2011 due to the fact that less direct FTE's were able to be staffed.

The gross margin declined further from 16.0% in Q3 2011 to 14.1% in Q3 2012. Direct personnel costs decreased with 18.1% as a result of the lower number of direct FTE's and less billable hours. Direct bonuses decreased with 56.7% but could not prevent a gross margin decline.

The indirect costs for the Member Company ICT excluding allocated corporate costs decreased from Eur 195 thousand in Q3 2011 to Eur 99 thousand in Q3 2012. In Q3 2011 one-off costs of Eur 112 thousand were booked for doubtful debtors. Excluding these one-off costs the indirect costs increased by 20.2% primarily due to higher costs for external consultancy.

The operating result excluding allocated corporate costs remained negative at Eur -2 thousand in Q3 2012 compared to Eur -56 thousand in Q3 2011.

TMC Construction

The Member Company Construction had slightly higher revenues in Q3 2012 compared to the same period last year. The revenues increased with 1.6% from Eur 1.2 million in Q3 2011 to Eur 1.2 million in Q3 2012. The revenues increased due to a higher number of billable hours and higher tariffs, driven by the Oil & Gas cell. The major part of the Member Company Construction continues to face considerable adverse end-market conditions.

The average number of direct FTE's for the Member Company remained stable at 46.0 (45.8 in Q3 2011).

The gross margin decreased from 29.8% in Q3 2011 to 27.5% in Q3 2012. This decrease is primarily due to increasing personnel cost, lower productivity and pressure on tariffs.

The operating result excluding allocated corporate costs was Eur 119 thousand in Q3 2012 compared to Eur 203 thousand in Q3 2011.

Cash flow

At the end of September 2012 the net cash position increased to Eur 6.8 million. The net cash flow from operations over the third quarter of 2012 was Eur 1.7 million (Q3 2011: Eur 2.4 million). The decrease in net cash flow from operations is primarily due to the lower profitability for the period and an increase in working capital. The total net cash flow decreased with 32.2% from Eur 2.3 million over the third quarter of 2011 to Eur 1.6 million over the same period this year.

Results YTD September 2012

Revenues YTD September 2012 were Eur 40.9 million versus Eur 39.0 million over the same period last year, an increase of 5.0%. The Member Company Technology contributed 84.4% of the Group revenues in the first nine months of 2012 compared to 80.2% in the first nine months of 2011. The relative contribution from the Member Company ICT decreased from 7.8% in the first nine months of 2011 to 6.0% in the same period this year. The Member Company Construction represented 10.1% of the revenues YTD September 2012 versus 11.9% in the same period last year.

The total average direct FTE increased with 10.8% from 440.5 in the first nine months last year to 488.1 in the first nine months of 2012.

The gross margin excluding subsidies decreased from 33.2% in the first nine months of 2011 to 29.8% in the same period this year. The gross margin including subsidies decreased from 36.7% over the first nine months of 2011 to 32.4% in the first nine months of 2012. One of the main reasons for this margin decrease is a lower productivity rate. In addition, total direct personnel related costs increased while average tariffs remained stable compared to the same period last year. The total direct personnel related costs increased with 12.1% due to a higher number of direct FTE's as well as a strong increase in social security and pension costs.

Despite the slight rise in the average number of indirect employees, the indirect costs went down by 3.0% compared to the same period last year. The operating result over the first nine months of 2012 amounted to Eur 5.0 million (2011: Eur 5.8 million), a decrease of 13.7%. The operating result as a percentage of the revenue was 12.2% in the first nine months of 2012 compared to 14.9% in 2011. Depreciation and amortisation YTD September 2012 was Eur 0.4 million (YTD September 2011: Eur 0.4 million) resulting in EBITDA of Eur 5.4 million (YTD September 2011: Eur 6.2 million), a decline of 13.1% year-on-year.  

Mnemo            : ALTMC

ISIN            : NL0000290997

Employeneurship model

The driving force behind TMC is the unique Employeneurship model. This enables us to bind top talent to our company. The model features the following five principles:

  • Long-term employment relationship

TMC values employing its Employeneurs and offering them long-term employment. By doing this we emphasise the faith we have in our people and that we would like to enter into a long-term working relationship together. Furthermore, this way of working offers our customers the correct quality of Employeneurs and continuity in R&D projects. This clearly deviates in relationship to project deployment agencies, job agencies and other intermediaries.

  • Individual profit sharing

On commencing employment the Employeneur's rate, as it will be charged to the customer by TMC, is determined transparently and in consultation with the Employeneur. Depending on his experience and seniority, the Employeneur shares in the profit. This can accumulate to 50%. This variable component is paid out monthly, depending on the actual rate and the hours worked. The variable reward makes our terms and conditions of employment highly competitive.

  • 1-on-1 career coaching /TMC Academy

One of the principles of our business model is aimed at the individual development of our Employeneurs by way of coaching. This will primarily be geared towards the inter and intrapersonal skills and enhancement of the entrepreneurial behaviour. Within the TMC Academy all these competencies are developed further. As far as the substantive professional knowledge is concerned, all our people are extremely highly developed. This is a part of the selection procedure when recruiting.

  • Specialised business cells

TMC is formed by various business cells. Each cell represents a certain area of competencies. The advantage of this structure is that the people in a cell feel connected with their peers. In addition they can share and request knowledge. For TMC the advantage is that we can enter both the customer market and the candidate market. Within the business cells we involve our Employeneurs in company policy and strategy development. This increasingly enables them to become an Employeneur.

  • Entrepreneurial Lab

In the Entrepreneurial Lab Employeneurs from various business cells work together on various projects. This way knowledge is shared and entrepreneurship is put into practice, with the accompanying budget and marketing plans. This is how we introduce our Employeneurs to true entrepreneurship, in a safe environment.

http://www.tmc.nl

PRN NLD

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...