UNIT4 Reports Successful 2010 With Strong Final Quarter

Published on February 22, 2011 in Computer & Electronics, Computer Hardware, Computer Software, Internet, Networks, Technology


The Netherlands (February 22, 2011) –

– Improved Operational Margin

– Cloud computing, Software as a Service (SaaS) and Subscription Based Pricing Increasingly Important

– Positive Outlook for 2011

UNIT4, the world’s leading provider of business software for fast changing organizations, today announced its annual results for 2010, citing a successful year despite challenging market conditions.

UNIT4 is well known for providing customers in the public and private sectors with solutions that reduce costs, improve control and enable them to manage rapid and continuous change without the typical costs associated with set-up and customization. This differentiation helped create opportunities for UNIT4 in 2010, particularly in the public sector, despite fears that government spending would come under pressure.

“UNIT4 solutions are designed to help organizations reduce costs, improve control and manage change so they continue to be successful in challenging market conditions,” said Edwin van Leeuwen, CFO, UNIT4. “By further addressing the trend towards cloud computing and SaaS in 2010, UNIT4 is also providing its customers with a choice of software delivery options that will help them reduce upfront investment in IT and ensure efficient technology adoption into the future. UNIT4 has implemented a series of strategies to address this market, including majority investment in FinancialForce.com, and as a result has taken a lead against its competitors.”

Q4 financial summary:

UNIT4 saw a strong order intake in the final quarter of 2010, including large customer orders in Germany, the United Kingdom and North America. A healthy level of activity was also seen in all other territories including the Benelux region, Sweden and Norway. Total revenue improved by 20.7%, including revenues from Teta SA, acquired during 2010. EBITDA grew by 11.7% to EUR 30.6 million ($41.8m USD*), an EBITDA margin of 24.8%.

Highlights for full year 2010:

– Total 2010 revenues increased by 11.1% to EUR421.7 million
($576.4m USD) (2009: EUR379.4 million) ($518.6m USD)
– License revenue grew by 23.4% to EUR72.7 million ($99.3m USD)
(2009: EUR58.8 million) ($80.3m USD)
– Total EBITDA improved by 14.6% to EUR86.1 million ($117.6m USD)
(2009: EUR75.1 million) ($102.6m USD)
– The total EBITDA margin grew to 20.4% (2009: 19.8%)
– Net profit (before goodwill) improved by 23.5% to EUR43.2 million
($59.0m USD) (2009: EUR35.0 million) ($47.8m USD)

Geographical breakdown:

Revenue in North America grew by 11%. With two main offices, on the west and east coasts, and a portfolio including both Agresso Business World and Coda products, a number of substantial and important orders were won including HealthPlan Services, Louisiana Supreme Court, Canadian Institute for Health Information, Short’s Travel, MTS Raptim International Travel Inc., and TRIUMF.

The Benelux business grew by 10%, with significant improvements in the private sector compared with 2009. Revenues in Norway and Sweden grew by 10% and 15% respectively, partly due to currency effects. The key success factors in Scandinavia are UNIT4’s strong presence in the public sector and its extensive base of satisfied customers.

License revenues in Spain grew by 26% with large orders in healthcare and the private sector. Despite this, total revenue declined by 6%, primarily due to the lower number of consultants as a result of the reorganization in 2009. Germany had a very strong fourth quarter, but in total its annual revenue declined by 5%. In the United Kingdom revenue grew by 4%. The service revenues declined – as in Spain – due to fewer consultants and more fixed-price contracts, but license revenues grew significantly. Public sector business in the UK remained strong, especially in the last quarter.

Performance in Asia improved significantly, with a >100% increase in revenue from new license sales. Further investment is planned in the region. Eastern Europe (Hungary and Czech) also reported significant increase in license growth.

Outlook for 2011

UNIT4 expects to see license revenue increase again in 2011. In total, organic revenue growth for the mid to long term is estimated at between 5% and 10%. A strategic reorganization of its R&D resources is planned this year which will see a focus on R&D in Granada, Spain.

*Converted from Euros at a rate of EUR1: US$1.36666

Results webcast

Chris Ouwinga, UNIT4 CEO and Edwin Van Leeuwen, UNIT4 CFO will be presenting the results via a webcast at 1000 CET on 23 February 2011. To join the webcast please visit http://www.unit4.com/Investors/financialinformation

For a full copy of the 2010 results statement, please visit http://www.unit4.com/Investors/investornews

About UNIT4

UNIT4 (http://www.unit4.com/) is a global business software and services company aimed at helping dynamic public sector, and commercial services organizations to embrace change simply, quickly and cost effectively in a market sector it calls ‘Businesses Living IN Change’ (BLINC)(TM). The Group incorporates a number of the world’s leading change embracing software brands including Agresso Business World, our flagship ERP suite for mid-sized services intensive organizations and Coda, our best-of-class financial management software.

With operations in 17 European countries, as well as 7 countries across North America, Asia Pacific and Africa and sales activities in several other countries, revenue of EUR421.7 million was realized in 2010. UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees. It is listed on Euronext Amsterdam by NYSE Euronext and is included in the Amsterdam Midcap Index (AMX). For more information on UNIT4 or any of its operating companies, please visit the website at http://www.unit4.com or contact:

Emma Hoyle, Group PR Manager
Tel: +44(0)1423-537977
Email: emma.hoyle@unit4.com

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Source: UNIT4

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