June 2, 2006 Turnover for PC SYSTEMS GROUP at consolidated level reached Euro 4.8 mil. noting a 55% decrease against Euro 10.7 mil. in the respective period of 2005. Losses, at Group level, amounted to Euro 2.1 mil. against Euro 354 thous. in the previous year period. Turnover posted a decline at parent company level, amounting to Euro 1.7 mil. versus Euro 7.9 mil.
The negative results of PC SYSTEMS' financials are greatly attributed to the ex shareholding relationship with POULIADIS & ASSOCIATES S.A., the latter facing -as already known- major hardships for a great period of time, directly having a negative impact on PC Systems' activity. The unfavorable financial condition of POULIADIS & ASSOCIATES led, among others, to the changes in the behavior of the cooperative credit institutions and the denial to renew debt received by PC SYSTEMS regarding the financing of major Public sector projects and removal of credit support.
The above developments radically impacted the company's cash flow resulting to dislocation of the supply chain and consequently of sales.
Despite the above mentioned adverse conditions, the Company up to date continues its production operation particularly as regards its engagements to the Greek Public sector. More specifically, though strategic options and in cooperation with other companies in the sector PC SYSTEMS has undertaken and proceeds with the realization of Public sector projects amounting to Euro 18.4 mil. maintaining at the same time private annual support contracts amounting to Euro 3.5 mil. holding a major part of the IT marker share. The balance of projects unexecuted amounts to 13 mil. euro.
As of May 15 2006 till today 65% of PC SYSTEMS' share capital has been transferred while POULIADIS & ASSOCIATES participation percent is confined to 4.8% of the share capital, signaling the Company's disengagement and dissociation from POULIADIS Group.
The company is under new Management, while Mr. Costas Vourdakis has assumed the duties of the Chairman and Managing Director, with the main objective being the company's financial recovery.
Within the above plans, presently, priority by the company is given to the restoration of its cooperation and relations within the entire environment it is active in (credit and banking institutions, suppliers etc) so as to recover its leading position as a provider of integrated IT solutions in the Public and particularly in the Private sector, before adverse external conditions affect its operations. Moreover, the managements' primary concern is to reestablish the trading regime of the company's share - suspended since 13/1/2006 -and will proceed with all the actions necessary.
PC SYSTEMS is active in the Systems Integration area. The company's core activities focus on the design, distribution, support, training and maintenance of information systems, the provision of advanced technology services to the information technology and telecommunications sectors, the systems integration and the development of business software.
