Pentalog will report at the end of the third quarter an organic growth of approx. 40%. This performance, though it remains well above the industry’s average (-6%) is dropping as was expected. However, it is 10% above expectations thanks to the excellent behaviour of our well established customer base; many have increased their business recently. 2 small customers went out of business following reorganization. Some customers have reduced their offshore operations without stopping.

Furthermore, the third quarter was characterized by increasing commercial inquiries and is expected to significantly improve forecasts for the 4th Q. Initially, the group was considering only an increase of around 10% in the 4th Q, due to adverse conditions. New expectations are evolving in this area and we now expect a growth of 15% to 20% by the end of the year.

Several new customers signed in the 3rd Q, and will strengthen the results in the coming months. A new growth area is developing in tourism and travel with the arrival of QCNS Planigo alongside Karavel Promovacances, Data System, and NG Travel. In energy management, Pentalog has signed its first contract, which is already monitoring options with a company that specializes in developing home automation products and solutions. With Coronis Elster Group, it will be the second platform in this promising sector.

In Telecoms, NordNet chose Pentalog as its new offshore provider. Nordnet became the third subsidiary of Orange which will be under contract with Pentalog. Thus, if one also considers the resources involved on behalf of LHS-Ericsson, editor of a billing system for mobile operators, more than 30 Pentalog consultants and engineers are presently involved daily in this sector. In the industry area, the Pentalog Embedded–Wireless sector accounts already for 75 engineers and technicians.

Finally, in the consulting area, Pentalog has expanded its banking operations in Bucharest, with the arrival of new team members directly involved with BRD, the Romanian subsidiary of Societe Generale.

Vietnam is now operating fully evaluated. Production teams in Vietnam are the equivalent to the Moldovan and Romanian teams (Pentalog divided a project of 42 people into 2 Moldovan teams, 2 Vietnamese teams and a Romanian team). The group has decided to start two new platforms during this last quarter. The Hanoi subsidiary will now have 35 employees at the end of this year (with an initial forecast of 40 employees).