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SSA GlobalTM Reports Third Quarter Results


SSA GlobalTM Reports Third Quarter Fiscal Year 2006 Results

SYDNEY – 8 June, 2006 – SSA Global (NASDAQ: SSAG), a leading global provider of enterprise business software and services, today announced financial results for the third quarter ended April 30, 2006.

"SSA Global continues to deliver strong financial performance by delivering comprehensive solutions that help our customers achieve their critical business needs,” said Mike Greenough, chairman, president and CEO of SSA Global.

Third quarter total revenue increased 8% to $194.6 million compared to $180.4 million last year.

License revenue for the quarter was $62.3 million, an increase of 19% from the third quarter last year and represented 32% of total revenue compared to 29% last year. On an organic basis, excluding contribution from recent acquisitions in the quarter and normalizing for foreign exchange equalization, license revenue grew 12%.

The acquisition of E.piphany, which closed on September 29, 2005, contributed $15.1 million to total revenue and $4.3 million to license revenue in the quarter.

During the third quarter, North America contributed 49% of total revenue; Europe, Middle East and Africa (EMEA) contributed 35%; and Asia-Pacific/Japan (APJ) and Latin America contributed 16%. For the quarter, 1,361 contracts were signed, including 57 new customers that represented 9% of total license value associated with software contracts signed in the quarter.

On an adjusted basis for the quarter, total revenue grew 8% to $195.1 million and net income grew 4% to $19.1 million or $0.26 per diluted share up from $18.4 million or $0.25 per diluted share last year. (Adjusted revenue, net income and earnings per diluted share include deferred license revenue associated with the E.piphany acquisition and an assumed 34% tax rate; it excludes amortization of acquired intangibles, stock option-based compensation expense and restructuring charges).

For the quarter, the Company reported GAAP net income of $4.6 million compared to $9.2 million last year, and earnings per diluted share under GAAP was $0.06.

Cash and cash equivalents as of April 30, 2006 totaled $140.6 million and net cash provided by operating activities for the quarter totaled $19.4 million. Days Sales Outstanding (DSO) were 77 and down from 83 days at the end of the third quarter last year.

Due to the Company’s definitive agreement to be acquired by Infor, which was announced on Monday, May 15, 2006, the Company will not hold a conference call to discuss its third quarter 2006 results.

Presentation of Non-GAAP Financial Measures
The non-GAAP financial measures presented in the text of this press release and accompanying supplementary financial information (also referred to as “adjusted”) represent the financial measures used by the Company’s management to evaluate the quarterly operating and cash flows performance of the Company and to conduct its business operations. These non-GAAP financial measures are also used by management to evaluate return on investment, income contribution and future impact to operating results of potential mergers and acquisitions. In addition, these non-GAAP financial measures facilitate management’s internal comparisons to competitors’ operating results and the software industry in general. This non-GAAP financial information is provided as additional information for investors and is not in accordance with, or an alternative to, GAAP. In addition, the non-GAAP financial information provided may be different than similar measures used by other companies. However, the Company’s management believes these non-GAAP measures provide useful information to investors, potential investors, securities analysts and others so each group can evaluate the Company’s current and future prospects in the same manner as management if they so choose. A reconciliation of GAAP financial information to adjusted results and EBITDA has been provided in the financial statement tables that accompany this press release.
About SSA Global
SSA Global (NASDAQ: SSAG) is a leading provider of enterprise business software for mid-sized and large organizations, primarily in select manufacturing, consumer and services industries. The company’s software solutions include enterprise resource planning, financial management, human capital management, corporate performance management, customer relationship management, product lifecycle management, supply chain management and supplier relationship management. Headquartered in Chicago, SSA Global has over 50 locations worldwide and its product offerings are used by customers in over 90 countries. For additional information, visit the SSA Global web site at www.ssaglobal.com.
Copyright © 2006. SSA Global. All rights reserved.

SSA Global is the corporate brand for product lines, and subsidiaries and affiliates of SSA Global Technologies, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

SSA, SSA Global, SSA Global Technologies, forward faster and other SSA Global products and services mentioned herein as well as their respective logos are either registered trademarks or trademarks of SSA Global in the United States and/or other countries.

Forward-Looking Statements
These materials may contain “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” “will be,” “will likely continue,” “will likely result,” or words or phrases with similar meaning. All of these forward-looking statements are based on estimates and assumptions made by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy or actual results to differ materially from those contained in forward-looking statements. Factors you should consider that could cause these differences include, among other things:
 General economic and business conditions, including exchange rate fluctuations;
 Our ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions;
 Our ability to maintain effective internal control over financial reporting;
 Our ability to attract and retain personnel, including key personnel;
 Our success in developing and introducing new services and products; and
 Competition in the software industry, as it relates to both our existing and potential new customers.


Ends

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