CDC Software Revises Estimate for, & Expects a 66 Percent Increase in, Second Quarter 2010 Application Sales Compared to Q2 2009
June 28 2010 - 8:00AM
Business Wire
CDC Software Corporation (NASDAQ: CDCS), a global provider of
hybrid enterprise software applications and services, today
announced that, based on preliminary financial projections and
estimates, the company expects application sales during the
second quarter of 2010 to increase about 66 percent over the
second quarter of 2009 compared to its previously announced
estimated increase of 33 to 42 percent. CDC Software posted
application sales of $7.8 million in the second quarter of
2009.
CDC Software has revised its estimates for second quarter
application sales upward primarily due to continued increases in
new logo sales for its on-premise solutions, strong cross-sales of
the company’s products and expanded cloud sales as a result of
acquisitions, investments and organic growth.
Application sales is comprised of license revenue plus new total
contract value. New Total Contract Value (NTCV) is the contract
dollar amount for the duration of the contracts for all new
software-as-a-service (SaaS) contracts secured, including rental,
as well as all renewal received by end of the quarter.
“We are pleased to revise upward our estimates for second
quarter 2010 application sales,” said Bruce Cameron, president of
CDC Software. “We have seen a significant increase in new logo
organic sales in our Front Office and Plant Floor on-premise
solutions, which is the best sales performance for these products
since 2008. We expect that the second quarter of 2010 will be our
best quarter ever in terms of cross-selling our products and we
have also seen a 95 percent renewal rate in our SaaS solutions that
includes a seven digit renewal and up-sell deal.
“As one of the leading hybrid cloud software companies that
offers enterprise solutions with on-premise and cloud deployment
options, we are very pleased that our new logo sales have improved
over prior quarters and that we have seen organic growth in both
on-premise as well as our cloud solution offerings. With this
improved sales performance and our commitment to continuing the
execution of our planned SaaS acquisitions, strategic investments
and organic growth, we are on track to reaching our previously
announced strategy of developing recurring revenue streams of close
to 70 percent of total revenue over the next few years.”
About CDC
Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a
hybrid enterprise software provider of on-premise and cloud
deployments. 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 resource planning (ERP), manufacturing
operations management, enterprise manufacturing intelligence,
supply chain management (demand management, order management and
warehouse and transportation management), global trade 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 8,000 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.
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 beliefs about Q2 2010 application sales,
NTCV, license revenue and SaaS revenue as well as total recurring
non-GAAP revenue, our beliefs regarding total contract value for
new SaaS contracts secured in the second quarter of 2010, our
beliefs and expectations regarding projected increases in the
number of enterprise and SaaS deals in the second quarter of 2010
and our pipeline, our beliefs regarding cross-selling performance
and SaaS renewal rates in Q2 2010, our beliefs regarding organic
growth, future performance and our strategies, our strategy and
goals with respect to recurring revenue streams and our
expectations for total maintenance and SaaS revenues, our beliefs
and plans regarding the completion of additional SaaS acquisitions
and strategic investments and our progress with respect thereto,
our beliefs regarding the potential amounts of recurring revenue we
may achieve and the timelines for achieving our goals, our beliefs
regarding certain trends we have noticed with respect to sales
pipelines, our beliefs regarding our ability to continue our growth
through organic and cross-sell sales, as well as synergistic
acquisitions, our beliefs regarding new logo sales, our beliefs
regarding momentum from our SaaS strategy and retention rates, our
beliefs regarding cross-sell 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,
the positioning of the company's and its partners’ solutions, as
well as the success of any of our strategies; (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; (p) the ability to complete and integrate any
acquisitions we may undertake; (q) 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,
including our Annual Report on form 20-F for the year ended
December 31, 2009, filed with the SEC on June 1, 2010, 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. All estimates contained
herein regarding Q2 2010 performance and other periods, are based
upon preliminary financial projections, beliefs and estimates. 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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