CDC Software Provides Guidance of Full Year 2010 Revenue and Non-GAAP Earnings Per Share
February 25 2010 - 7:30AM
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 2010 non-GAAP earnings per share(a) to be in the
range of $1.50 to 1.55, an increase of 15-18 percent from $1.31
reported for 2009; and revenue for 2010 to be in the range of $220
million to $228 million an increase of 8-12 percent from $203.9
million reported in 2009.
"We are pleased that, according to our preliminary estimates, we
forecast double digit improvement in our non-GAAP earnings per
share," said Peter Yip, CEO of CDC Software. “We believe we have
strong momentum going into 2010 after reporting an excellent fourth
quarter. For the fourth quarter of 2009, Adjusted EBITDA(a) nearly
doubled to $14.8 million, from $7.8 million in the fourth quarter
of 2008 and non-GAAP earnings per share nearly quadrupled to $0.40
compared to $0.11 in the fourth quarter of 2008. We also reported
record operating cash flow of $53 million for the full year
2009.
“Even if the slow economic recovery continues throughout 2010,
we are cautiously optimistic that we are well positioned, with
improved operating metrics and net cash on hand, for organic growth
through cross-sell opportunities and expansion in emerging markets
such as China and India.”
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
provider of enterprise software applications and a full range of
services designed to help organizations deliver a superior customer
experience, while increasing efficiencies and profitability.
Leveraging a service-oriented architecture (SOA), CDC Software
offers multiple delivery options for their solutions including
on-premise, hosted, cloud-based Software as a Service (SaaS) or
blended-hybrid deployment offerings. CDC Software’s solutions
include enterprise requirements planning (ERP), manufacturing
operations management, enterprise manufacturing intelligence,
supply chain management (demand management, order management and
warehouse and transportation management), e-Commerce, human capital
management, customer relationship management (CRM), complaint
management and aged care solutions.
CDC Software’s recent acquisitions are part of its “acquire,
integrate, innovate and grow” strategy. Fueling the success of this
strategy is the company’s global scalable business and
technology infrastructure featuring multiple complementary
applications and services, domain expertise in vertical markets,
cost effective product engineering centers in India and China, a
highly collaborative and fast product development process utilizing
Agile methodologies, and a worldwide network of direct sales and
channel operations. This strategy has helped CDC Software deliver
innovative and industry-specific solutions to more than 6,000
customers worldwide within the manufacturing, distribution,
transportation, retail, government, real estate, financial
services, health care, and not-for-profit industries. 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, Inc. (HKGEM:8006) focused on portals for the
greater China markets. For more information about CDC Corporation
(NASDAQ: CHINA), please visit www.cdccorporation.net.
(a) Adjusted Financial Measures
This press release includes Adjusted EBITDA and non-GAAP
earnings per share, which are not prepared in accordance with GAAP
("Non-GAAP Financial Measures"). Non-GAAP Financial Measures are
not alternatives for measures such as net income, earnings per
share and cash and cash equivalents prepared under generally
accepted accounting principles in the United States ("GAAP"). These
Non-GAAP Financial measures may also be different from non-GAAP
measures used by other companies. Non-GAAP Financial Measures
should not be used as a substitute for, or considered superior to,
measures of financial performance prepared in accordance with
GAAP.
Investors should be aware that these Non-GAAP Financial Measures
have inherent limitations, including their variance from certain of
the financial measurement principals underlying GAAP, should not be
considered as a replacement for GAAP performance measures, and
should be read in conjunction with our consolidated financial
statements prepared in accordance with GAAP. These supplemental
Non-GAAP Financial Measures should not be construed as an inference
that the Company's future results will be unaffected by similar
adjustments to net earnings determined in accordance with GAAP.
* Special Note Regarding CDC Software Financial Projections
and Guidance
The financial estimates and guidance contained herein apply only
to CDC Software Corporation, a subsidiary of CDC Corporation. These
estimates and guidance amounts do not apply to, and are not
indicative of, the expected consolidated financial performance of
CDC Corporation, or the expected financial performance of CDC Games
Corporation, China.com, Inc. or any of their respective
subsidiaries. Investors are cautioned not to place reliance on the
financial estimates and guidance set forth herein for purposes of
any investment decision with respect to the shares of CDC
Corporation, and should read the foregoing in conjunction with the
reports and other materials filed with the United States Securities
and Exchange Commission by CDC Corporation and CDC Software
Corporation, from time to time.
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 for 2010 GAAP net income and
non-GAAP earnings per share, our beliefs regarding momentum in our
corporate performance, our beliefs regarding our sales pipeline and
cross-selling opportunities, 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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