SSA Global Reports First Quarter 2005 Results
CHICAGO – December 15, 2004 – SSA Global™, a leading provider of extended enterprise solutions and services, today announced financial results for the first quarter ended October 31, 2004.
Total revenue for the first quarter rose to $166.5 million, an increase of 18 percent from $141.7 million in the first quarter of last year. Software license revenue was $41.4 million, up 37 percent from the first quarter last year. The increase in total revenue came primarily from the integration of the recently acquired product lines. The increase in software license revenue was split between organic growth and contributions from recently acquired product lines. Software license revenue represented 25 percent of total revenue for the quarter ended October 31, 2004.
SSA Global’s business strategy to acquire market share and grow customer share continues to provide year-over-year revenue increases. SSA Global acquired Baan in July 2003, EXE® Technologies, Inc. in December 2003 and more recently integrated transportation management solutions provider, Arzoon®, Inc., and process manufacturing solutions provider, Marcam.
Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) for the first quarter was $30.2 million compared to $22.8 million in the prior year quarter. Excluding acquisition integration and other one-time costs of $5.0 million in last year’s first quarter, EBITDA was $27.8 million. Net income for the quarter was $6.6 million this year compared to $5.4 million last year.
During the first quarter, North America contributed 45 percent of total revenue with Europe, Middle East and Africa (EMEA) contributing 38 percent. Latin America and Asia-Pacific/Japan contributed the remaining 17 percent of total revenue. In the quarter, 553 software license contracts were signed, including 38 new customers purchasing extended enterprise resource planning solutions.
“This quarter’s results demonstrate the continued success of our business strategy – acquire market share and grow customer share – and customer commitment to SSA Global,” said Mike Greenough, chairman, president and CEO of SSA Global. “We grew software license revenue by 21% for product lines owned as of July 31, 2003,” added Greenough.
About SSA Global
SSA Global™ is a leading provider of extended ERP solutions for manufacturing, distribution, retail, services and public organizations worldwide. In addition to core ERP applications, SSA Global offers a full range of integrated extension solutions including corporate performance management, customer relationship management, product lifecycle management, supply chain management and supplier relationship management. Headquartered in Chicago, SSA Global has 63 locations worldwide and its product offerings are used by approximately 13,000 active customers in over 90 countries. For additional information, visit the SSA Global web site at www.ssaglobal.com.
SSA Global™ is the new corporate brand for product lines and subsidiaries of SSA Global Technologies, Inc. SSA Global, SSA Global Technologies and SSA GT are trademarks of SSA Global Technologies, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.
Presentation of Non-GAAP Financial Measures
The non-GAAP financial measure presented in the text of this press release, EBITDA, is intended to provide a useful supplement to cash flow from operations in understanding cash flows generated from operations that are available for debt service (interest and principal payments) and further investment in research and development and acquisitions. We believe EBITDA provides meaningful additional information that enables management to monitor our ability to generate cash and provides investors an understanding of cash flow performance over comparative periods. We also believe EBITDA reflects the underlying economics of our business and aligns with the operating cash flow performance of our company as measured under GAAP. However, EBITDA is not a measure of cash flow performance under GAAP and should not be considered in isolation or as a substitute for cash flows from operations, or other cash flow statement data prepared in accordance with GAAP, as a measure of liquidity or as indicative of whether cash flows will be sufficient to fund our future cash requirements. Moreover, EBITDA is not a standardized measure and may be calculated in a number of ways. Accordingly, the EBITDA information provided in this press release might not be comparable to other similarly titled measures provided by other companies.
Forward-Looking Statements
These materials may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that are not statements of historical fact (including without limitation statements to the effect that SSA Global or its management "believes," "expects," "anticipates," "plans," "looks forward" and similar expressions) should be considered forward-looking statements. Any "forward-looking statements" in these materials are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. Many important factors could cause SSA Global`s actual results to differ materially from those expressed in the forward-looking statements made by or on behalf of SSA Global, including, without limitation, the size and timing of license transactions, the effect of economic conditions on the spending patterns of SSA Global’s customers, the impact of competitive products and services, the effect of fluctuations in the economy and local currency, the ability of SSA Global to accurately forecast revenue, the ability to maintain adequate cash flow, the ability to maintain a satisfactory credit facility, the relationship between SSA Global and its affiliates and suppliers, the ability to manage costs and expenses, the availability of qualified resources, the ability to develop and enhance products, and other unknown risks including those as may be detailed in other SSA Global filings, reports and releases. SSA Global undertakes no obligation to revise or publicly update these forward-looking statements, whether as a result of new information or otherwise.
For press inquiries, contact:
Maria Diecidue
SSA Global
(312) 258-6000
maria.diecidue@ssaglobal.com
Scott Goldberg
Edelman
(312) 297-7414
scott.goldberg@edelman.com
Back...
