Archive for the 'CDC Software' Category
CDC Software’s Second Quarter Results
Let’s talk numbers. CDC Software Corporation, a hybrid enterprise software provider of on-premise and cloud deployments, recently announced financial results for the quarter ended June 30, 2010. For the second quarter of 2010, Non-GAAP revenue was up $3.4 million from Q2 last year at $54.0 million and Non-GAAP net income was down $0.6 million from Q2 of 2009 at $7.8 million. They’ve had a slight decrease in their Q2 2010 Adjusted EBITDA at $11.7 million, compared to $10.6 million in the first quarter of 2010 and $13.7 million in the second quarter of 2009.
Second quarter 2010 application sales increased 73 percent to $13.5 million, from $7.8 million in the second quarter of 2009. Application sales are comprised of license revenue plus new secured total contract value of SaaS contracts. Secured Total Contract Value (STCV) is the contract dollar amount for the duration of the contracts for all SaaS contracts secured, including new logo contracts, upsell, rental, as well as all renewals received by the end of the quarter. The company’s estimates, announced in June 2010, provided that application sales during the second quarter of 2010 would increase by approximately 33-42 percent from the second quarter of 2009. The higher than expected results were due primarily to organic growth in the company’s core product lines.
License revenue from new logo sales in the second quarter of 2010 increased 131 percent to $3.0 million, compared to $1.3 million in the second quarter of 2009. New logo sales in the second quarter primarily came from the company’s Pivotal CRM, CDC Factory, CDC gomembers and China-based Human Resource Management products.
Second quarter 2010 license revenue increased by 13 percent to $8.8 million, compared to $7.8 million in the second quarter of 2009. Non-GAAP SaaS revenue(a) increased 53 percent to $2.6 million, compared to $1.7 million in the first quarter of 2010. STCV was $4.7 million, compared to $480,000 in the first quarter of 2010, due to organic growth, as well as recent acquisitions. Also, the number of enterprise deals (which includes on-premise and SaaS product lines, but excludes SaaS renewals) in the second quarter of 2010 totaled 344, compared to 249 in the second quarter of 2009 (which did not include SaaS). The number of new logo deals in the second quarter of 2010 increased to 120, compared to 108 in the second quarter of 2009.
“We are very pleased with the strong growth in application sales that included a significant increase in new logo organic sales from our Front Office, Plant Floor, China-based HRM on-premise applications and CDC gomembers SaaS solutions,” said Bruce Cameron, president of CDC Software. “We have also been seeing our SaaS applications serve as mission critical solutions for our customers, as our SaaS renewal rates averaged approximately 95 percent in the second quarter of 2010. Based upon the increase in SaaS revenue we have seen, our preliminary estimates and projections, and our projected bookings so far this year, we expect to see double digit quarter-to-quarter growth in SaaS revenue for at least the next few quarters. With SaaS revenue continuing to grow at a greater rate than our other revenue streams, and assuming modest maintenance revenue growth, we continue to expect to reach our goal of achieving recurring revenue closer to 70 percent of total revenue in the next few years.”
No commentsCDC software acquires iDC
CDC Software, an ERP solutions vendor, announced it plans to purchase Information Development Consultants Inc. (iDC). iDC is a web-based ERP software service for state and local governments as well as non-profit organizations.
In an effort to bolster their SaaS initiative, CDC has been strategically acquiring cloud-based vendors. Last February, CDC acquired Computility, a Saas management software solution with web collaboration tools. CDC Software is a hybrid company with both on-premise and on-demand ERP solutions.
iDC is a Chicago-based private held company. iDC developed 4gov ®, a government fund accounting and ERP solution, for state and local governments. iDC’s PlusFund® is an ERP solution specifically designed for non-profit organizations. iDC ERP systems are scalable and can support small communities to national governments. iDC was one of the first vendors to offer web-based ERP solutions for state and local government markets.
CDC Software plans to leverage iDC solutions to tap into the state and local government markets as well as integrating iDC technology into CDC gomembers enterprise product line. CDC acquired gomembers last year in an effort to acquire complimentary SaaS solutions that target the non-profit sector. CDC also offers on-premise and on-demand solutions for eCommerce, manufacturing operations, supply chain, global trade and customer relationship management.
“We are extremely excited to complete the acquisition of iDC,” said CDC gomembers president, Paul Plaia III. “It will help us enter into the state and local government markets and further expand our presence in the NFP market. It’s important for governments to prove to their constituents that they are committed to balancing government spending with revenue. We believe that having a robust SaaS financial management system like the iDC Solutions will give the government executives and elected officials the tools they need to plan and manage public money. We also believe that the state and local government markets offer strong revenue opportunities since e-government has grown steadily over the years. We plan to continue evaluating more companies like these as we build scale and expand globally in the key NFP and Government vertical markets.”
“Most importantly, we also look forward to working with iDC customers and offering them our high quality solutions and services and access to our broad global business and technology infrastructure. The iDC acquisition not only fits strategically, but also meets our disciplined acquisition criteria and is expected to be earnings accretive immediately. This acquisition is part of our SaaS roll-up strategy to expand CDC SaaS solutions. Therefore, we are planning on making more investments to further expand our footprint in the growing SaaS space.”
No commentsCDC Supply Chain Software Vendor Acquires TradeBeam
After following business software news for a while, we’ve noticed a predominant trend. Business solutions providers have their ‘heads in the clouds’. Meaning, software companies are focusing their attention on cloud-computing, on-demand solutions. Recent acquisitions in the ERP industry show that companies are realizing the value of expanding their cloud-based solutions.
CDC Software Corporation recently acquired TradeBeam for an undisclosed amount. CDC is an enterprise solution and supply chain management software provider that has both on-premise and on-demand solutions. TradeBeam is a San Mateo based on-demand global trade management and supply chain visibility software vendor. The acquisition serves to expand CDC’s supply chain software portfolio of cloud-based solutions by leveraging TradeBeam’s software-as-a-service (SaaS) technology.
CDC plans to integrate TradeBeam’s SaaS supply chain visibility software into its own CDC supply chain product line. The merging of technologies will help CDC users improve supply chain visibility and automate their trade management processes. TradeBeam and CDC have several common customers who will benefit from the acquisition and CDC’s product portfolio expansion.
TradeBeam offers cross-sell opportunities for CDC users who source and sell globally. TradeBeam customers will enjoy access to the CDC Ross ERP and CDC Factory’s manufacturing software solutions, CDC Activ Plant’s enterprise manufacturing operations management solutions, and CDC eCommerce platform. TradeBeam offers CDC users SaaS solutions for import and export compliance, global sourcing, forecasts and inventory visibility, global trade finance, and supply chain management.
The supply chain software vendor will also benefit from the acquisition by using TradeBeam to become a relevant solutions provider in the global trade industry. Global trade management is a growing field due to economic globalization, increasing trade volumes worldwide, and new markets in developing countries that offer low cost material and labor resources. Recent ERP research found that global trade practices accompanied by automation will result in increased profitability by 10-40 percent.
“This is a very synergistic combination on many fronts,” said TradeBeam’s CEO, Edward Flaherty. “Our solutions are a great fit for CDC Software’s growing installed base, especially with its CDC Supply Chain and CDC eCommerce products and their market presence in complementary vertical industries such as automotive, medical device and retail industries. We expect that TradeBeam and its customers will benefit immensely from the global breadth of CDC Sotware’s technology and business infrastructure, especially their extensive operations in China, and the company’s broad portfolio of complementary solutions.”
“We believe the global trade management market will continue to see strong growth and offer us numerous revenue opportunities since companies are selling more and more of their products globally and increasingly moving their manufacturing and sourcing offshore,” said CEO of CDC Software, Bruce Cameron. “Like many of our past acquisitions, TradeBeam fits into CDC Software’s disciplined acquisition criteria and is expected to be earnings accretive immediately.”
The acquisition highlights two important trends in the ERP world. ERP vendors, like supply chain software company CDC, are turning towards on-demand solutions as well as focusing their attention on expanding into the global trade market. These two ERP trends are exemplified by the CDC-TradeBeam acquisition.
No commentsCDC Software Expanding Its Reach in China
ERP software heavyweight CDC announced yesterday in Shanghai that it plans to acquire a controlling share in the Hejia Software Technology Co. Ltd. The Beijing-based Hejia is a major ERP software provider in China, and after the customary closing conditions and the completion of due diligence, CDC Software will have a second Chinese partner in its Franchise Partner Program. The program began in 2006, and aims to establish strategic relationships with partners in selected regions (usually emerging markets), through majority control and minority investments; the first Chinese partner was Integrated Solutions Ltd.
Hejia was founded in 1998 and is a major player in the Chinese enterprise market. Their most popular product is HJSOFT, a web-based platform with functionality in ERP, CRM, supply chain management, and financial management. Their products are used by over 400 customers in industries spanning from Healthcare to Industrial. Pending a successful acquisition, Hejia will resell CDC products and leverage the company’s infrastructure to amplify its own sales. CDC executives have been looking to emerging economies for industry growth, and while the Hejia acquisition represents a significant foothold in China, CDC will pursue other investments there.
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