Contact for press

You can contact us by:

Rocio Castro. Communication Department.

Media Kit

Follow us on:

Keep up-to-date on the latest at the Abengoa website:


Telvent Announces Second Quarter 2008 Financial Results

August 28, 2008

  • Six-month Pro Forma Revenues of € 284 million
  • Increase in Six-month Pro Forma Income from Operations of 13.9%
  • Six-month Pro Forma Diluted EPS of € 0.40
  • New Order Bookings of € 159 million

August 28, 2008 – Telvent GIT, S.A. (NASDAQ: TLVT), the IT company for a sustainable and secure world, today announced unaudited financial results for the second quarter and six–month periods ended June 30, 2008.

Pro forma revenues for the second quarter 2008 were € 148.3 million (€ 152.0 million excluding foreign currency exchange translation impact), compared to € 150.5 million in the second quarter of 2007. Pro forma revenues for the first six months of 2008 were € 284.4 million (€ 291.6 million excluding foreign currency exchange translation impact), an increase of 6.5%, compared to pro forma revenues of € 267.0 million for the first six months of 2007.

Pro forma gross margin was 24.5% for the second quarter of 2008, compared to 21.7% in the second quarter of 2007. Pro forma gross margin for the first six months of 2008 was 25.5%, compared to 23.8% in the same period of 2007.

Pro forma operating margin for the second quarter 2008 was 5.6%, compared to 5.5% in the second quarter 2007. Pro forma operating margin was 6.7% for the first six months of 2008, showing an improvement of 40 basis points, from 6.3% in the first six months of 2007. Pro forma income from operations has increased by 13.9% in the first six months of 2008, compared to the same period of the prior year.

Pro forma net income for the second quarter 2008 was € 4.6 million, compared to € 5.2 million in the second quarter 2007. Pro forma EPS for the second quarter 2008 was € 0.16, compared to € 0.18 in the second quarter 2007. Pro forma net income for the first six months of 2008 was € 11.8 million, versus € 11.5 million for the first six months of 2007. Pro forma EPS for the first six months of 2008 was € 0.40, versus € 0.39 for the same period in 2007.

New order bookings (or new contracts signed) during the second quarter of 2008 totaled € 159.2 million. The accumulated bookings year–to–date were € 328.0 million.

Backlog (representing the portion of signed contracts for which performance is pending) was € 583.3 million as of June 30, 2008, reflecting a 7.7% growth over the € 541.5 million in backlog at the end of June 2007. In addition, soft backlog (representing pending performance on multi-year frame contracts for which there is no contractual obligation on the part of the client to fulfill the full contract amount) was € 145.9 million as of June 30, 2008.

Pipeline, measured as management’s estimates of opportunities for the following twelve months, is expected to approximate € 3.2 billion.

As of June 30, 2008, cash and cash equivalents were € 63.7 million and total debt (including € 77.2 million of net credit line due to related parties) amounted to € 157.0 million, resulting in a net debt position of € 93.3 million. As of December 31, 2007, the Company’s net debt position was € 0.5 million.

For the first six months of 2008, cash used in operating activities was € 80.2 million compared to € 76.8 million used in the same period last year. Cash provided by investing activities in the first six months of 2008 amounted to € 38.2 million, compared to € 21.8 million provided in the same period of 2007.

Manuel Sanchez, Telvent’s Chairman, said, “I am satisfied that we are managing to maintain our top line growth and increase in margins in the first half of this year despite a challenging economic environment, a Spanish presidential election process and the weakness of the U.S. Dollar currency. Our customers continue to rely on our technology solutions for a sustainable and secure world, as demonstrated by our bookings. These solid bookings and backlog, along with the strong pipeline, also give us confidence for the rest of 2008.”

Business Highlights


Some of the most relevant projects signed during the second quarter of 2008 were as follows:

  • The project awarded by Sinopec (China Petroleum & Chemical Corporation), in China, for supplying technological systems that will control the Sichuan-East China gas pipeline. The project involves Telvent’s delivery of a turnkey solution adapted to the control and supervision needs and requirements of Sinopec's gas pipeline. This solution will provide Sinopec with accurate data on the entire process of gas transportation, thereby ensuring optimization of China’s natural gas resources. The data acquisition and control solution will be implemented in the main control center and the emergency control center, where the 20 data acquisition stations and the 25 communication stations will be controlled. In addition, Telvent will handle system design, integration with the existing systems, testing, installation, start-up, training and maintenance.


During the second quarter some of the significant contracts signed were:

  • Contract signed with Metropolitan Transportation Authority (MTA), in the United States, for the Maintenance and Repair of the Electronic Toll Registry System for the MTA Bridges & Tunnels E-ZPass System. The contract is valued at approximately € 18 million. The contract involves the upgrade, enhancement, and maintenance of an E-ZPass electronic toll collection system, with electronic E-ZPass and manual collection lanes. Telvent will implement its Remote Operations and Maintenance System (ROMS), a monitoring tool that will improve maintenance and operations efforts, further increasing system availability for MTA Bridges & Tunnels E-ZPass patrons.


During the second quarter, significant contracts signed were:

  • Contract with the Andalusian Water Agency of the Council for the Environment, in Andalusia (Spain), for the maintenance, the update, and exploitation of the Automated Hydrological Information System (AHIS) of the Andalusian Mediterranean Basin (AMB). The goal of the contract is to set the maintenance works for the SAIH-South network in order to achieve proper and permanent functioning over the course of its duration. This network is located within the so-called Andalusian Mediterranean Basin (approximately 18,000 square kilometres). This contract strengthens our relationship with the Andalusian Water Agency.

Public Administration

Significant projects awarded in the second quarter 2008, among others, included:

  • Contract signed with the Andalusian Health Service, in Spain, to develop and implement its corporate information system for specialized care throughout the entire hospital network.

Global Services

During June of 2008, Telvent obtained certification in compliance with the ISO 20000-1:2005 standard for the Information Technologies Services Management System (ITSMS) of its Global Services division, through the external audit conducted by the British Standard Institute (BSI) firm. This certification acknowledges the high quality of Telvent’s IT service management solutions, based on ITIL (Information Technology Infrastructure Library) practices, the most widely recognized international standard for managing and operating IT infrastructure.

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we use certain non-GAAP measures, including pro forma net income and EPS. Pro forma net income and EPS are adjusted from GAAP-based results to exclude certain costs and expenses that we believe are not indicative of our core operating results. Pro forma results are one of the primary indicators management uses for evaluating historical results and for planning and forecasting future periods. We believe pro forma results provide consistency in our financial reporting which enhances our investors’ understanding of our current financial performance as well as our future prospects. Pro forma results should be viewed in addition to, and not in lieu of, GAAP results.

Pro forma net income excludes the amortization of intangible assets from the purchase price allocations in our acquisitions, stock compensation plan expenses and mark-to-market hedging, that Telvent believes are not indicative of its core performance or results. Reconciliation between GAAP, pro forma net income and EPS is provided in this release in a table immediately following the condensed consolidated financial statements.

Conference Call Details

Manuel Sanchez, Telvent’s Chairman and Chief Executive Officer and Barbara Zubiria, Chief Financial Reporting Officer and Head of Investor Relations, will conduct a conference call to discuss the second quarter 2008 results, which will be simultaneously webcast at 2:00 P.M. Eastern Time / 8:00 P.M. Madrid Time on Thursday, August 28, 2008.

To access the conference call, participants in North America should dial (800) 374-0724 and international participants +1 (706) 634-1387. A live webcast of the conference call will be available at the Investor Relations page of Telvent’s corporate website at Please visit the website at least 15 minutes prior to the start of the call to register for the teleconference webcast and download any necessary audio software. A replay of the call will be available on the website approximately two hours after the conference call is completed.

About Telvent

Telvent (NASDAQ: TLVT) is a unique global company listed on the NASDAQ Stock Exchange and a component of the CleanTech IndexTM —the first and only stock market index of leading clean technology ("cleantech") companies.

Telvent, the IT Company for a sustainable and secure world, specializes in high-value-added products, services and integrated solutions in the Energy, Transportation, Environmental and Public Administration industry segments, as well as Global Services. Its innovative technology and proven experience help ensure secure and efficient management of the operating and business processes of the world’s leading companies. (

Investor Relations Contact:

Bárbara Zubiría
Tel. +34 902 335599

Lucia Domville
Tel. +1 646 284 9416

Contacto de Comunicación

Patricia Malo de Molina
Tel. +34 954 93 71 11

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are proceeded by words such as “believes,” “expects,” “may,” “anticipates,” “plans,” “intends,” “assumes,” “will” or similar expressions. Forward-looking statements reflect management’s current expectations, as of the date of this press release, and involve certain risks and uncertainties. Telvent’s actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the “Risk Factors” described in Telvent’s Annual Report on Form 20-F for the year ended December 31, 2007, filed with the Securities and Exchange Commission on March 10, 2008 and Telvent's Quarterly Report on Form 6-K for the quarter ended March 31, 2008, filed with the Securities and Exchange Commission on May 22, 2008.


© 2019 Abengoa. All rights reserved