Pentalog achieves a 29% growth in Q2, mainly in the e-commerce, M2M and embedded sectors

Pentalog pursues its efforts with a 29% growth in Q2, thus continuing the trend of Q1 (31%). This growth is half due to the extension of existing contracts, unlike Q1 which had seen the signing of an unprecedented number of new contracts which were immediately launched into production. Before returning to contract extensions, let us salute the arrival of at least six new clients, while the second quarter is still not over: three in France, one in Germany and two in Israel. One of them bears a strategic importance as it consists in taking over the developments of a future star of the French e-commerce sector, following a financial operation which didn’t go unnoticed on the Parisian market. This is a strategic operation also because it confirms the results that Pentalog already obtained in the electronic commerce field, especially with Magento. Moreover, one of the global leaders in social networking has chosen Pentalog for its development needs. Thus, the online selling platforms developed and set up by Pentalog will soon register an annual sales figure of approximately 1 billion euros. In Germany, we salute the signing of a Business Intelligence contract with a recognized clothing company, Gerry Weber. Following its Q1 record, the group boasts 16 new clients who have already launched their projects since the beginning of the year.As regards extensions, Pentalog reports a second development since the beginning of the year of the operation carried out for the Telecom Billing software editing branch of the Ericsson Group (former LHS). This operation, which is being developed in Iasi, was launched in 2008 and will involve over 36 employees in a few days’ time. Likewise, one of our major real estate clients has just included more services in its request to Pentalog, while another customer operating in the same field has extended its contract with our company. In addition, the technological branch of one of the largest French energy groups has prolonged the contractual relations initiated in January with Pentalog in the M2M (machine to machine) field.As for the Pentalabbs incubator, start-ups continue their fast-developing trend as they register a growth rate close to 100% in Q1 and Q2. They will develop by more than 50% in 2011. Their sales do not fall within Pentalog’s financial analysis scope.For Q3, Pentalog expects yet another substantial growth, but at a lower rate. It will probably be between 12 and 18%.The semester will therefore finish with an organic growth of approximately 30%, thus confirming both our international strategic options (Israel, Germany, Switzerland, Belgium) and the specific specialization efforts. E-com/merce, M2M, embedded development in the mobile telephony sector continue to grow a lot faster than the rest of the market.