SOURCE: UNIT4 Business Software

UNIT4 Business Software

February 22, 2013 11:32 ET

UNIT4 Reports Continued Growth in Revenue and Profit in 2012

VICTORIA, BC and MANCHESTER, NH--(Marketwire - Feb 22, 2013) -

  • Operating profit growing
  • Shift towards subscription model continues
  • Increasing success against "tier 1" ERP vendors

UNIT4 N.V., the global cloud-focused business software group listed on the Amsterdam Stock Exchange, has announced its financial results for the year ended December 31st, 2012.

Despite the difficult economic situation, UNIT4, which specializes in software for businesses living in change, won a record number of deals against tier 1 vendors and is increasingly replacing such systems in clients seeking more adaptable, cost-effective solutions.

Highlights for Full Year 2012:

  • Total revenue increased by 5.4% to USD $624.0 million (EUR 469.8 million) (2011: USD $592.0 million) (EUR 445.7 million))
  • Run rate of cloud revenues at up by 90% to $17million
  • EBITDA, including and exceptionals, rose by 3.2% to USD $114.5 million (EUR 86.2 million) (2011: USD $110.9 million (EUR 83.5 million))
  • EBITDA, excluding and exceptionals, increased by 7.4% to USD $134.9 million (EUR 101.6 million) (2011: USD $125.6 million (EUR 94.6 million))
  • EPS before goodwill related items grew by 22.9% from USD $2.03 to $2.50 (EUR 1.53 to EUR 1.88)
  • Dividend proposal 2012: USD $0.60 (EUR 0.45) (2011: USD $0.53 (EUR 0.40))
  • UNIT4 is actively shifting towards SaaS and subscription model
  • Irregularities in Poland identified and resolved

In 2012 total revenue grew by 5.4 % to USD $624.0 million (EUR 469.8 million) (2011: USD $592.0 (EUR 445.7 million)), highlighting UNIT4 competitive strength and, even more importantly, its high client retention rate. Contract revenue grew by 8% to USD $260.7 million (EUR 196.3 million). Total recurring revenues now represent 52% of total revenues (2011: 49%).

While SaaS and subscription revenues continued to show a strong upward trend, product revenue also returned growth for the full year. In the last quarter of 2012, UNIT4 intensified its focus on the sale of cloud solutions, resulting in a decline in products but a growth in the annual run rate of SaaS and subscriptions from USD $58.0 (EUR 43.5 million) at year-end 2011 to USD $75.7 million (EUR 57.0 million) at year-end 2012, an increase of USD $17.9 million (EUR 13.5 million) or approximately 31%.

The trend towards SaaS and subscription is now clearly evident and UNIT4 is actively shifting towards this model. Although the majority of its ERP installations and extensions are still demanded and installed as "on-premises" solutions, increasing numbers of potential customers are considering moving to the cloud, including for full ERP suites. This shift has a larger impact on the revenues in the fourth quarter and in particular in December.

Service revenues stabilized at USD $198.1 million (EUR 149.1 million), in spite of the increase in the number of customers, due to increased focus on efficient implementation, including templating and outsourcing of lower value services. This delivers better value to customers and increases UNIT4 competitiveness in the market.

Performance in North America was positively influenced by the merger of the Agresso and Coda operations which positioned UNIT4 Business Software as a strong player in the North American market.

Shelley Zapp, CEO of UNIT4 Business Software in North America, commented: "We are thrilled to see the revenue growth generated in 2012 thanks to a significant increase of high profile customers in the not-for-profit and commercial sectors including IPAS, Conservation International, the City of Penticton, Nature Conservancy, Map International and Jordan's Furniture. In addition, we have witnessed a real momentum building around our cloud offering and new business opportunities within existing customers. With our new structure and offices located on the west and east coasts, we are in a great shape to serve our customers and thrive in today's market by delivering software solutions that allow businesses living in change to operate efficiently with a low on-going cost of ownership."

To read the full UNIT4 Group financial results press release, click here. For the full 2012 results statement, please click here.

About UNIT4 Business Software

UNIT4 Business Software is the North American subsidiary of UNIT4, a $624 million global business software and services company that creates, provides and supports software for Businesses Living IN Change -- delivered via the cloud or on-premise. It offers solutions that help these fast-changing public, private, non-profit and higher education 'BLINC' organizations embrace business change -- simply, quickly and cost-effectively. UNIT4 Agresso, the company's flagship Enterprise Resource Planning (ERP) suite and UNIT4 Coda Financials, its best-of-class financial management software, are used by 6000+ organizations in more than 100 countries. For more information visit our website or follow the company on Twitter, LinkedIn and Innovating4Change, the company blog.

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