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