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CDC Software Estimates 49 Percent Growth in Third Quarter 2010 Application Sales

Announcement posted by CDC Software Australia 23 Sep 2010

SHANGHAI, ATLANTA, SYDNEY - 22 September 2010 - CDC Software Corporation (NASDAQ: CDCS), a global provider of hybrid enterprise software applications and services,today announced that, based on current financial projections and estimates, the Company expects third quarter 2010 application sales to be approximately $11.3 million, an increase of approximately 49 percent compared to $7.6 million as reported in the third quarter of 2009, primarily due to increased license sales in its EMEA region and with its CDC Factory products.

Application sales is comprised of license revenue plus Secured Total Contract Value (STCV) for Software-as-a-Service (SaaS) sales secured during the third quarter of 2010.

“We are excited that initial projections indicate robust growth in application sales in the third quarter, which historically has been weak due to the seasonality of our sales/business cycle,” said Bruce Cameron, president of CDC Software. “Despite the extended holiday season in the summer, our European region has been seeing significant growth, especially in the U.K., which is expected to be its best quarter in two years for software license sales. We closed significant transactions that included two seven digit sales and services deals for our CDC TradeBeam cloud solution and the CDC Factory on-premise plant floor solution, a three-quarter of a million dollar sale for CDC TradeBeam and a sizeable Pivotal CRM on-premise license sale in Russia, as well as steady growth in the CDC gomembers cloud-based Non-Profit and Public Sector solutions. We have been seeing strong sales, including large multi-plant deals, with our CDC Factory product line, and have also been seeing expansion in sales in Latin America, India and China.”

Cameron added, “We are also pleased with our expanding sales pipeline for the next six months, especially in cross-sell activities. For example, we have been seeing great traction in cross selling our cloud-based eCommerce solution into our 10,000 customer installed base. With our solid business fundamentals in place and a strong financial foundation, we believe that we are poised to continue growth through organic and cross-sell sales opportunities, as well as synergistic acquisitions and investments in both the on-premise, as well as SaaS business models.”