UPDATE 1-EServGlobal sees FY EBITDA of A$3 mln, cuts 13 pct jobs
* Sees 13 pct less jobs by June 30 from Dec 31 levels
* Says no debt, strong cash reserves
* Expands restructuring to increase EBITDA margin
* Says encouraging trend for 2010 revenue
* Shares indicated down 13.6 pct (Adds details)
May 26 (Reuters) -Australian software firm eServGlobal Ltd (ESGq.L) (ESV.AX) said it expected earnings before interest, taxation, depreciation and amortisation of A$3 million ($2.34 million) for the full year, excluding restructuring costs, and that it would cut 13 percent jobs.
The company said it expected revenue of A$150 million to A$155 million for the year ending June 30 and that it was confident of a "very encouraging" trend for 2010 revenue.
EServGlobal expects a 13 percent reduction in jobs at June 30 from Dec. 31, 2008 levels, which is expected to result in restructuring costs of A$6 million for the year.
The company expects annualised cost saving of about A$10 million from the restructuring, it said in a statement dated May 25.
"Market conditions have continued to be difficult and telecoms operators are postponing investment in network capacity. Therefore, we have increased our focus on new opportunities for our charging and payment solutions," Executive Chairman Ian Buddery said.
The company has expanded its restructuring programme to increase the earnings before interest, taxation, depreciation and amortisation (EBITDA) margin in 2010, it said.
"The restructuring and rationalisation of product platforms in FY09 will enable us to generate more revenue from a reduced cost base in coming years, whilst reducing the cost of implementation and support," Buddery said.
EServGlobal continued to have no debt, strong cash reserves and a strong pipeline of organic growth opportunities, it added.
In a separate statement, eServGlobal said it, along with Convergys Corp. (CVG.N) received a multi-year contract from a U.S.-based mobile operator and another contract in Indonesia.
Shares of the company were indicated down 13.6 percent at 19 pence at 0718 GMT on Tuesday on the London Stock Exchange. ($1=1.284 Australian Dollar) (Reporting by Ramkumar in Bangalore; Editing by Gopakumar Warrier)
© Thomson Reuters 2009 All rights reserved



