Sinqia informs that measures are been taken to prevent the spread of the coronavirus (“COVID-19”) and to minimize its impact on the Company’s business and financial situation, as described below:
Avoid spread. Since the identification of the first case of COVID-19 in Brazil, we have adopted several measures to protect the health of our employees, customers, shareholders and partners, such as: (i) installation of a Crisis Committee with daily meetings; (ii) cancellation of all face-to-face meetings with external audiences, including travels; (iii) home office implementation for our employees. Taking these actions, we keep all the commitments assumed with our customers and we are prepared to support them to face this scenario.
Impact on business. We have not identified any relevant impact on the business, but we have not ruled out future impacts, which are not yet quantifiable, such as: (i) Software Unit: potential delay in implementations and reduction in demand for customizations; (ii) Services Unit: potential temporary reduction in Outsourcing operations for certain customers. However, 83.0% of our revenues were recurring in 2019, concentrated in financial institutions, features that provide us with some stability in times of crisis.
Impact on the financial situation. We have not identified any material impact on the financial situation. We had gross cash of R$ 365.0 million on 31 Dec. 2019, maintained in low-risk investments. In view of the new economic reality, we will adopt, in the short term, a conservative position in making new investments – including in potential acquisitions – in order to maintain high liquidity and low leverage, without jeopardizing the consolidation plan.
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