UNIT4 (EURONEXT AMSTERDAM: UNIT4), the global business software group, today announced its financial results for the first half of 2012. The Group, which specialises in software for fast-changing organisations, reports a 20% increase in SaaS and Subscriptions revenues, a 5% growth in licence sales, of which almost 3% was organic, and especially strong performance in North America, UK, Norway and Asia.
Product revenue for the first half year grew by 5% to $44.3M USD(1) (EUR36 million) with significant growth in North America (+25%), Sweden (+23%), UK (+19%) and Asia (greater than 300%). The Benelux region also performed well with almost 5% product revenue growth and an especially strong performance in the healthcare business unit.
Contract revenues enjoyed healthy growth. Revenues from contracts (maintenance and subscriptions) rose by more than 8% from H1 2011 to $145.3M USD (EUR118.2 million). The share of contracts in total revenue increased to 51% (H1 2011: 49%).
Total revenues increased by 4% with most countries showing respectable organic growth. The exceptions were Spain, where reorganizations resulted in revenues below expectation, and Poland. During the first half of 2012, the Group made an adjustment to and restated its 2011 results due to a revenue recognition matter associated with historic transactions undertaken with partners in Poland(2). Germany was flat in the first half year but has closed a large 6 year subscription deal with the State of Berlin which will contribute in the second half of 2012.
The strong growth experienced by FinancialForce.com in 2011 has accelerated in the first half of 2012. The monthly revenue run rate in June 2012 grew by more than 100% compared to June 2011.
Dedicated to creating, selling and supporting cloud applications on the Force.com platform the company is increasing subscriptions strongly and seeing the customer size and deal size growing rapidly. As demand for cloud applications continues to increase FinancialForce.com is recruiting rapidly both in North America and Europe to expand its sales and marketing capacity and cope with growing demand. In addition more partnerships being announced that expanded the functional capabilities and market reach of the FinancialForce solutions.
Highlights for first half of 2012 (against restated Half Year results for 2011) include:
-- Total revenue increased by 4% to $283.7M USD (EUR230.8 million) -- Product (license) sales grew 5% to $44M USD (EUR36.0 million) -- Recurring revenue (contracts & SaaS / subscriptions) increased by 8% to $145.3M USD (EUR118.2 million) -- SaaS / subscription revenues grew 20% from $23.2M USD (EUR18.9 million) to $27.9M USD (EUR22.7 million) -- Services and other revenues decreased by 2.5% to $94.2M USD (EUR76.6 million) -- Cloud applications specialist FinancialForce.com grew strongly with monthly revenue run rate up more than 100% -- Personnel and other operating costs increased by more than 6% due to investments in sales and marketing which should support growth in the 2nd half 2012 and beyond -- EBITDA rose by 3.1% to $45.5M USD (EUR37.0 million) -- Excluding FinancialForce.com, EBITDA increased 4.3% to $50.3M USD (EUR40.9 million) -- Net profit before goodwill decreased by 19.9% to $18.8M USD (EUR15.3 million) due to higher depreciation and revaluation of the interest swap.
"Over the past twelve months we have continued to invest in our solutions portfolio as well as our sales and marketing efforts and are encouraged to see that on-going investment paying dividends. With UNIT4 customers can select software solutions that meet their business and financial needs today while also delivering that all important flexibility and agility in this ever changing trading environment. Our performance, the growth in traditional licence sales as well as the strong revenues generated from our SaaS and subscription based offerings underpins our strategy to offer customers a choice when it comes to how their solutions are deployed and managed," said Edwin van Leeuwen, CFO, UNIT4. "Looking forward, and based on the current estimates and pipeline, we maintain our previously communicated target of single digit growth in both revenue and EBITDA for the full year 2012."
For a full copy of the H1 2012 results statement, please visit: http://unit4.bz/cZVEd.
About UNIT4 Business Software
UNIT4 Business Software in North America (www.unit4software.com) is a wholly-owned subsidiary of UNIT4, a $602 million global cloud-focused business software and services company. UNIT4 Business Software helps dynamic public, private, non-profit and higher education organizations embrace change simply, quickly and cost effectively in a market sector it calls "Businesses Living IN Change (BLINC)?". Agresso Business World is widely acknowledged as the Enterprise Resource Planning (ERP) solution that delivers the lowest Total Cost of Change. The software's unique Vita? architecture allows for ongoing, post-implementation changes by business users, without the external IT costs typical of traditional systems.
More than 3,000 companies and organizations in 100 countries deploy Agresso Business World for both operational support and strategic management. Agresso is a role-based, Web Services enabled solution that can be deployed on-premise or in the cloud. It includes Financial Management, Budgeting and Forecasting, Human Resources and Payroll, Procurement Management, Project Costing and Billing, Reporting and Analytics, Business Process Automation, and Field Services and Asset Maintenance.
UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees. It is listed on Euronext Amsterdam by NYSE Euronext and is included in the Amsterdam Midcap Index (AMX).
With operations in 24 countries, across Europe, North America, Asia Pacific and Africa, revenue of EUR454.7 million was realized in 2011.
For more information on UNIT4 or any of its operating companies, please follow us on Twitter @UNIT4_Group, visit our Facebook page http://www.facebook.com/UNIT4BusinessSoftwareNV, and visit the website at www.unit4.com.
(1) Translated at 1 EUR = $1.229USD - original figures in euros
(2) These transactions were made prior to UNIT4's acquisition of Teta and are believed to have been conducted under standard Polish business practices but are deemed not to be in the best interest of UNIT4. The adjustment to the 2011 results has been made, legal advice is being sought, the H1 2012 results are unaffected and no on-going impact is expected.
Contacts: UNIT4 Hilary Pike UK PR Manager and Interim Group PR Manager +44 (0) 7810 657 778