April 20, 2010 13:09 ET

UNIT4 Increases Licence Sales and EBITDA in 1st Quarter

Organizations See Benefit in Software That Can Adapt to Change

Licence Sales See 30% Increase and EBITDA Rises by 51%

SLIEDRECHT, NETHERLANDS--(Marketwire - April 20, 2010) - UNIT4, the global business software company supporting Businesses Living IN Change (BLINC™), today announced a 30% increase in licence sales and a 51% increase in EBITDA margin in the first quarter of 2010, in line with expectations. Total revenue increased by 6% to EUR 96.8 million in the first quarter, with a strong improvement in licence sales and an 8% growth in contract revenue.

Evidence of recovery in UNIT4's markets continued through the first quarter. Licence growth was the greatest in the United Kingdom, with several major orders from the public sector including Herefordshire Council, Chesterfield NHS and Southend-on-Sea Borough Council. Spain also generated above-average growth, with a number of significant orders from the healthcare sector including Hermanas Hospitalarias and CAF - Corporación Andina de Fomento (Venezuela), as well as Save The Children. Growth was also evident in all other key countries.

Gross margin improved further to a level of 91.3% (Q1 2009: 91.1%). As a result of the cost reduction measures taken in the first quarter of 2009 and the growth in licence sales, EBITDA rose by 51% to EUR 15.4 million (2009: EUR 10.2 million). This produced an EBITDA margin for the first quarter of 15.9% (2009: 11.2%).

"From a historical perspective, the operational results for the first quarter of the financial year provide a limited indication of what can be expected for the year as a whole," said Edwin van Leeuwen, UNIT4 CFO. "Expected profit for the year remains in line with expectations. The improved order intake we are seeing is encouraging and shows that customers are acknowledging the benefits of the kind of software we offer. The importance of software that can easily adapt to change is greater than ever based on the feedback we are getting. Companies selling rigid business software that is difficult to customize and costly to implement and change will struggle to capitalize on an upturn in the market."

About UNIT4
UNIT4 is a global business software and services company aimed at helping dynamic 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 and CODA financial management software.

For mid-sized services intensive organizations, UNIT4 markets the Agresso Business World ERP suite that is widely acknowledged as the business software solution that delivers the lowest Total Cost of Change. This is achieved thanks to its VITA™ architecture which allows for ongoing, post-implementation changes without the typical external IT costs and services that cost firms huge sums of money each year.

CODA Financials is our award-winning suite of best-of-class financial management software designed to integrate with your industry- and company-specific applications. CODA's LINK™ architecture sets it apart from ordinary accounting systems by providing a financial information backbone for companies with fast-changing and mixed application environments. It is a global accounting solution for mid-to large sized organizations, offering a "no compromise" approach to financial modeling, process control and application choice.

UNIT4 is a top six mid-market ERP software player globally and the 2nd largest European ERP supplier. With offices in 13 European countries, as well 6 countries across North America, Asia Pacific and Africa and sales activities in several other countries, a revenue of EUR 379.4 million was realized in 2009. UNIT4 is headquartered in Sliedrecht, the Netherlands. The company has 3,456 employees (31 December 2009).

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