CSS issues profit warning and sees almost 10% knocked off its share price

"I was expecting that the company will change its forecast for 2005, but I must admit that I am surprised with such a high correction," commented Sobiesław Pająk, CDM Pekao analyst. CSS explained that the lower profits are the result of higher than anticipated restructuring costs of acquired companies. Moreover, the firm also paid zł.2.1 million in outstanding VAT tax, but it is also applying for its refund. "One time occurrences lowered the initial forecast by as much as zł.4.7 million. This means that at the operational level CSS is doing only slightly worse than planned," said Pająk. The company believes that next year will be much better and it will acquire a several new clients, with whom it has been in negotiations with for some time. CSS will most likely not pay out a dividend for 2005. (Parkiet, p. 5) M.M.