Update on Oracle Transaction & Financial Guidance


 

TIDMESG 
 
RNS Number : 3158P 
eServGlobal Limited 
14 July 2010 
 

Update on Oracle Transaction, Financial Guidance and Year End Annual Reporting 
Timetable 
Sydney, 14 July 2010 
Oracle Transaction Update 
eServGlobal Limited ("eServGlobal" or the "Company"), announced to the market on 
26 May 2010 the conditional sale of its USP Business and USP Products to Oracle 
for up to US$93.75M. 
A key condition precedent to completion of the transaction was approval by the 
Company's shareholders. This was obtained on 30 June 2010. 
Initial advice obtained by the Company indicated that the profit on sale from 
this transaction would be recognised for accounting purposes in the FY2010 year. 
 However, as a result of other conditions remaining outstanding at the present 
time, the transaction has not completed at this time. 
The Company's management continues to work with Oracle to expeditiously satisfy 
the remaining conditions and expects the transaction to be completed within Q1 
FY2011. Accordingly, and further to consultation with the Company's auditors, 
the profit on sale from this transaction will now be recognised in the FY2011 
year. 
This is simply a financial reporting timing issue and does not represent any 
change in the nature of the transaction or management's completion expectations. 
 
Guidance Update 
In the 26 May 2010 announcement, the Company indicated that while FY2011 will be 
a year of transition, it expects to achieve operational revenue in the range of 
AUD$38M to AUD$45M (GBP22 - 26M) and generate positive EBITDA (before 
non-recurring restructuring charges) of up to AUD$5M(GBP2.9M). The Board 
maintains this guidance.  However, due to the current expectation that the 
transaction will both complete and be recognised for accounting purposes in 
FY2011, FY2011 EBITDA will be impacted by a one-off, pre-tax profit on the sale 
of its USP Business and USP Products to Oracle for US$93.75M. 
Based on the current USD/AUD exchange rate of 0.875 (as compared to 0.827 on 26 
May 2010) and management's current assessment of purchase price adjustments and 
transaction fees the estimated sale proceeds from this transaction are now 
expected to be AUD$107.1M (USD$93.75M), generating a  pre-tax profit (before 
goodwill impairment) on sale in excess of AUD$100M. Note the final proceeds of 
this sale are still exposed to foreign exchange fluctuations and purchase price 
adjustments as set out in the 26 May 2010 announcement. 
As a consequence of not recognising the transaction in FY2010, revenue is 
expected to be in the range of AUD$77M to AUD$82M (unchanged) and the Company 
will report an EBITDA loss (before non-recurring restructuring and foreign 
exchange losses) of between AUD$10M and AUD$15M. 
 
Following the expected completion of the transaction, the Board remains 
committed to conducting a capital management review as described in the 26 May 
announcement. 
FY2010 Annual Financial Reporting Timeline Update 
The Company will lodge its Appendix 4E (Preliminary Final Report) as required by 
the ASX by 31 August 2010 and its Annual Financial Report by 30 September 2010. 
About eServGlobal 
eServGlobal is listed on the Australian Securities Exchange (ASX:ESV) and the 
London Stock Exchange AIM Market (LSE:ESG). 
More information is available on our website www.eservglobal.com. 
+---------------------------------+---------------------------------+ 
| eServGlobal Limited             |             Tel  +61 73302 0194 | 
| Jason Lilienstein               |            info@eservglobal.com | 
| Company Secretary               |                                 | 
+---------------------------------+---------------------------------+ 
| Altium (AIM)                    |       Tel +44 (0)  207 484 4040 | 
| Nominated Adviser, Mike         |                                 | 
| Fletcher/Paul Lines             |                                 | 
| Corporate Broking, Chloe        |                                 | 
| Ponsonby                        |                                 | 
+---------------------------------+---------------------------------+ 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCGGURWMUPUUPC
Eservglobal (LSE:ESG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024