Despite growing uncertainty about the world economy, performance in Q3 continued in line with the first half of the year. In particular, license revenues in Scandinavia, North America and Asia grew strongly (>20%). The German business also performed well closing three important license deals in the private sector and one major subscription based deal in the public sector. UNIT4 companies in the Benelux, Poland and the UK performed in line with expectations, with some deals slipping into Q4. Performance in Spain remains weak as a result of the continuing fragile economy.
FinancialForce.com, the cloud applications company, in which UNIT4 is a majority investor, performed ahead of plan and showed a growth in monthly run rate (September 2011 versus September 2010) of about 500%.
The total Q3 revenue amounted to € 102.5 million, a total organic increase of 3% compared to the reported revenues in the third quarter of 2010. SaaS/subscription revenues grew particularly strongly. Despite an increasing trend towards SaaS/subscription, traditional license revenues also showed organic growth. In Q3, all other revenue categories performed in line with expectations and more than 53% of the revenues were recurring.
The gross margin recovered (compared with Q2 2011) in Q3 to a level of 91.2%.
Despite increased investments in Financialforce.com, total EBITDA continued to grow in Q3. The total EBITDA in Q3 - including Financial Force - rose by 2% to € 20.5 million, representing an EBITDA Margin of 20.0% (Q3 2010: € 20.1 million).
Outlook
Based upon the current estimates and pipeline, UNIT4 management maintains its previously communicated target for the full year of 2011.
Publication of annual figures for 2011 will take place on 21 February, 2012 (after market closing).
This document contains certain future expectations about the financial state of affairs and results of the activities of UNIT4 as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors can cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important economies, statutory changes and changes in financial markets, in pension costs, in the salary levels of employees, in future exchange and interest rates, in future takeovers or divestitures and the pace of technological developments. UNIT4 therefore cannot guarantee that the expectations will be realized. UNIT4 also refuses to accept any obligation to update statements made in this document.
For further information, please contact:
UNIT4 N.V.
Chris Ouwinga CEO or Edwin van Leeuwen CFO
Phone : +31 (0)184 444444
Fax : +31 (0)184 444463
E-mail:
edwin.van.leeuwen@unit4.com
About UNIT4 – www.unit4.com
UNIT4 is a global business software and services company aimed at helping dynamic public sector, and commercial services organizations to embrace change simply, quickly and cost effectively in a market sector it calls 'Businesses Living IN Change' (BLINC)™. The Group incorporates a number of the world’s leading change embracing software brands including Agresso Business World, our flagship ERP suite for mid-sized services intensive organizations and Coda, our best-of-class financial management software.
With operations in 17 European countries, as well as 7 countries across North America, Asia Pacific and Africa and sales activities in several other countries, its revenue was $586 million in 2010. UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 6,000 customers and 4,000 employees. It is listed on Euronext Amsterdam and is included in the Amsterdam Midcap Index (AMX). For more information on UNIT4 or any of its operating companies, please visit the website at
www.unit4.com, follow us on Twitter @UNIT4_Group or join us on Facebook at
www.facebook.com/UNIT4BusinessSoftwareNV.