CDC Software Reports Third Quarter 2010 Non-GAAP Revenue of $54.2 million and Non-GAAP EPS of $0.25, Exceeding Consensus Estimates
Announcement posted by CDC Software Australia 12 Nov 2010
SHANGHAI, ATLANTA, SYDNEY - 11 November, 2010 — CDC Software Corporation (NASDAQ: CDCS), a hybrid enterprise software provider of on-premise and cloud deployments, today announced financial results for the third quarter ended September 30, 2010. Non-GAAP revenue(a) was $54.2 million and Non-GAAP net income(a) was $7.0 million, or $0.25 in Non-GAAP earnings per share(a) (Non-GAAP EPS), compared to Non-GAAP revenue of $48.6 million and Non-GAAP net income of $9.6 million, or $0.33 in Non-GAAP earnings per share, in the third quarter of 2009. Operating cash flow in the third quarter of 2010 was $12.0 million.
Third quarter 2010 Adjusted EBITDA(a) was $10.1 million, compared to $13.2 million in the third quarter of 2009. The company’s third quarter 2010 Non-GAAP EPS, Adjusted EBITDA and Non-GAAP revenue exceeded current First Call consensus estimates of $0.22 per share for Non-GAAP EPS, $9.0 million for Adjusted EBITDA and $53.9 million for Non-GAAP revenue.
CDC Software’s cash and cash equivalents totaled $36.4 million as of September 30, 2010. Third quarter 2010 Adjusted EBITDA margin(a) was 19 percent, compared to 27 percent in the third quarter of 2009.
Third quarter 2010 license revenue increased by 18 percent to $9.0 million, compared to $7.6 million in the third quarter of 2009. Non-GAAP SaaS revenue(a) increased 48 percent to $3.9 million, compared to $2.6 million in the second quarter of 2010. The number of enterprise sales deals increased to 348 in the third quarter of 2010, compared to 247 in the third quarter of 2009. Approximately 54 percent of CDC Software’s total license revenue was derived from North America, 30 percent from EMEA, and 16 percent from Asia/Pacific
“Overall, we are pleased with third quarter 2010 results including our 18 percent growth in license revenue, 12 percent increase in Non GAAP revenue compared to the third quarter of 2009, significant expansion in application sales, and solid cash flow from operations of $12.0 million,” said Bruce Cameron, president of CDC Software. “Our third quarter Non-GAAP revenue, Adjusted EBITDA and Non-GAAP EPS beat consensus estimates despite the company’s transition to its hybrid software model, which required increased upfront costs for sales, marketing and R&D. Therefore, we believe we are on track to meet Non-GAAP EPS estimates of $1.02-$1.08 for 2010 and consider our EPS to be among the highest in our selected software peer group.
“Specifically, our European business saw significant growth in the third quarter, with the U.K. region achieving its best quarter in two years for software license sales. We have also achieved our highest cross-sell revenue in more than two years, which was highlighted by a recent six figure deal with a CDC Supply Chain customer that selected our CDC eCommerce cloud solution. For our on-premise solutions, we had the highest number of new logo sales for Ross ERP in two years, significant new logo sales with our CDC Platinum HRM solutions and the CDC Factory product line generated the highest dollar revenue of new logo business of all the CDC Software Business units and product lines. We believe these recent sales achievements illustrate the success of our hybrid business model, especially with our performance in cross-sell deals between our SaaS and on-premise solutions.”
For further information please contact:
Jimmy Hong
CDC Software Australia
Phone: +61 2 8870 7000
E-mail: jimmy.hong@cdcsoftware.com.au