CDC Software Estimates 49 Percent Growth in Third Quarter 2010 Application Sales
September 22 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 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.”
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 10,000 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 and expectations regarding Q3 2010
application sales, our beliefs and expectations regarding our
significant growth in the European region, as well as the expected
performance of that region, our beliefs regarding future growth and
the reasons therefor 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 Q3
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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