CDC Software Estimates a 37 Percent Growth in Quarterly Sequential License Revenue for the Fourth Quarter of 2009, including ...
January 05 2010 - 8:26AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a global provider of
enterprise software applications and services, today announced
that, based on preliminary financial projections and estimates, the
company expects license revenue to be about $10.3 million for the
fourth quarter of 2009, compared to (U.S.)$7.6 million in the third
quarter of 2009, and (U.S.)$7.5 million for the average of the
first three quarters of 2009.
According to First Call, the consensus analysts estimate for
fourth quarter 2009 license revenue is (U.S.)$7.9 million. The
company estimates that organic license revenue in the fourth
quarter is projected to be about (U.S.)$9.8 million compared to
(U.S.)$7.5 million, for the average of the first three quarters of
2009, a 30 percent increase.
In the fourth quarter, CDC Software expects to generate more
than (U.S.)$600,000 in license sales from the three recent
acquisitions completed in the fourth quarter of 2009. Without the
benefit of these acquisitions, CDC Software would still be expected
to report a double-digit sequential improvement in organic license
sales compared to the third quarter of 2009.
For the fourth quarter 2009, license revenue from the installed
customer base is expected to increase about 60 percent from the
third quarter of 2009, due primarily to seasonal budgetary factors
within the installed base. Of the top five deals in the fourth
quarter, the leading vertical industries for the company included:
high tech/software, manufacturing, life sciences, automotive and
food and beverage. The percentage of license revenue from North
America is expected to be about 50 percent, EMEA, 31 percent and
Asia/Pacific, 19 percent.
“We are very pleased with the expected 30 percent organic
license growth compared to our previous three quarters average and
other robust metrics we have been seeing such as faster sales
cycles and growth from virtually all of our vertical markets, which
leads us to believe the enterprise software market is likely on the
rebound,” said Bruce Cameron, president of CDC Software.
“Additionally, we are pleased with the performance of our recently
acquired companies (Activplant, Truition and gomembers) which have
exceeded our internal expectations. We closed in excess of $1.0
million in software as a service (SaaS) bookings in the last month
of the fourth quarter in 2009. Annualizing this $1.0 million run
rate would expand our recurring revenues, which we define as SaaS
revenues plus maintenance revenues, by approximately 12 percent. We
expect the majority of revenue to continue to come from recurring
sources considering our recent SaaS acquisitions. In fact, we
expect this segment to grow as a percentage of our total revenue
over time as we acquire more SaaS companies in fast growth vertical
markets such as ecommerce and the Not-For-Profit.
“Finally, the focused strategy we implemented earlier this year
to help maximize cross sales within our more than 6,000 customers
as already been showing signs of success, as we expect an increase
in fourth quarter license revenue from our installed base compared
to the previous quarter.”
About CDC
Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
provider of enterprise software applications and services designed
to help organizations deliver a superior customer experience, while
increasing efficiencies and profitability. CDC Software provides
customers with maximum flexibility in their solutions through
multiple deployment options which best fit their business needs.
Leveraging a service-oriented architecture (SOA), CDC Software
offers multiple delivery options for their solutions such as
on-premise, cloud-based or hybrid (blending of the two options)
deployment offerings. CDC Software's product suite includes: CDC
Factory (manufacturing operations management), Activplant
(enterprise manufacturing intelligence), CDC Ross ERP (enterprise
resource planning), CDC Supply Chain (supply chain management,
warehouse management and order management),CDC xAlerts (real-time
supply chain event management), CDC Power (discrete ERP), CDC
eCommerce, CDC NFP/NGO, CDC Pivotal CRM and Saratoga CRM (customer
relationship management), CDC Respond (customer complaint and
feedback management), c360 CRM add-on products, industry solutions
and development tools for the Microsoft Dynamics CRM platform, CDC
HRM (human resources) and business analytics solutions.
These industry-specific solutions are used by more than 6,000
customers worldwide within the manufacturing, financial services,
health care, home building, real estate, wholesale and retail
distribution industries. The company completes its offerings with a
full continuum of services that span the life cycle of technology
and software applications, including implementation, project
consulting, technical support and IT consulting. For more
information, please visit www.cdcsoftware.com.
About CDC Corporation
The CDC family of companies includes CDC Software (NASDAQ: CDCS)
focused on enterprise software applications and services, CDC
Global Services focused on IT consulting services, and outsourced
R&D and application development, CDC Games focused on online
games, and China.com China.com, Inc. (HKGEM:8006) focused on
portals for the greater China markets. For more information about
CDC Corporation (NASDAQ: CHINA), please visit
www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements regarding our expectations relating to license revenue
growth and organic license sales growth in the fourth quarter of
2009, our expectations regarding increases in new logo license
sales, sales to our installed base customers and our sales
pipeline, our beliefs regarding license sales from newly-acquired
companies including the continuation thereof, our beliefs regarding
reasons for increases in revenues, our expectations regarding the
geographic distribution of our revenues, our beliefs regarding our
future performance and improvements in financial and business
metrics, such as faster sales cycles and growth in our verticals,
our beliefs regarding a possible rebound in the enterprise software
market, our beliefs regarding future revenues from recurring
sources and the future growth thereof, our expectations and beliefs
about continuing an acquisition strategy, and other statements that
are not historical fact, the achievement of which involve risks,
uncertainties and assumptions. If any such risks or uncertainties
materialize or if any of the assumptions proves incorrect, our
results could differ materially from the results expressed or
implied by the forward-looking statements we make. These statements
are based on management's current expectations and are subject to
risks and uncertainties and changes in circumstances. There are
important factors that could cause actual results to differ
materially from those anticipated in the forward looking
statements, including the following: (a) the ability to realize
strategic objectives by taking advantage of market opportunities in
targeted geographic markets; (b) the ability to make changes in
business strategy, development plans and product offerings to
respond to the needs of current, new and potential customers,
suppliers and strategic partners; (c) the effects of restructurings
and rationalization of operations; (d) the ability to address
technological changes and developments including the development
and enhancement of products; (e) the entry of new competitors and
their technological advances; (f) the need to develop, integrate
and deploy enterprise software applications to meet customer's
requirements; (g) the possibility of development or deployment
difficulties or delays; (h) the dependence on customer satisfaction
with the company's software products and services; (i) continued
commitment to the deployment of the enterprise software solutions;
(j) risks involved in developing software solutions and integrating
them with third-party software and services; (k) the continued
ability of the company's enterprise software solutions to address
client-specific requirements; (l) demand for and market acceptance
of new and existing enterprise software and services and the
positioning of the company's solutions; (m) the ability of staff to
operate the enterprise software and extract and utilize information
from the company's enterprise software solutions; (n) the continued
cooperation of our strategic and business partners; (o) risks
relating to economic conditions and other matters beyond our
control; and (p) the risk that the preliminary financial results
provided herein could differ from our actual results. Further
information on risks or other factors that could cause results to
differ is detailed in our filings or submissions with the United
States Securities and Exchange Commission, and those of our
ultimate parent company, CDC Corporation, located at www.sec.gov.
All forward-looking statements included in this press release are
based upon information available to management as of the date of
the press release, and you are cautioned not to place undue
reliance on any forward looking statements which speak only as of
the date of this press release. The company assumes no obligation
to update or alter the forward looking statements whether as a
result of new information, future events or otherwise. Historical
results are not indicative of future performance.
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