CIMdata PLM Industry Summary Online Archive
8 December 2005
Financial News
SSA Global Reports First Quarter Fiscal Year 2006 Operating Results; Record Organic License Growth Drives Earnings
SSA GlobalT announced financial results for the first quarter ended October 31, 2005.
"We are pleased to report another strong performance in fiscal 2006 Q1, our 14th consecutive quarter of profitability with continuing strong license revenue," said Mike Greenough, chairman, president and CEO of SSA Global. "We believe our product strategy and laser focus on solutions are being very well received by our customers."
First quarter total revenue increased 7% to $177.5 million compared to $166.5 million in the prior year.
License revenue for the quarter was $52.0 million, an increase of 26% from the first quarter last year. On an organic basis, license revenue grew 21% for the quarter and represented 29% of total revenue compared to 25% last year.
The acquisition of Epiphany, which closed on September 29, 2005, contributed $6.4 million to total revenue and $2.4 million to license revenue in the first quarter.
During the first 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 the remaining 16%. For the quarter ended October 31, 2005, 982 contracts were signed, including 58 new customers that represented 8% of the total license value associated with software contracts signed in the quarter.
On an adjusted basis, net income for the quarter grew 19% to $17.8 million or $0.24 per diluted share up from $15.0 million or $0.21 per diluted share last year. (Adjusted net income and earnings per diluted share includes deferred license revenue associated with acquisitions and an assumed 34% tax rate and excludes amortization of acquired intangibles, in-process research and development charges, stock-based compensation expense, restructuring charges and benefits and loss on early extinguishment of debt). For the quarter, adjusted operating income grew 20% to $30.9 million representing 17% of revenue that was up from 15% of revenue last year.
For the first quarter, the Company reported GAAP operating income of $10.3 million compared to $13.7 million last year and GAAP net income of $1.0 million compared to $6.4 million last year. Earnings per diluted common share, under GAAP, were $0.01 for the current fiscal year quarter.
Cash and cash equivalents as of October 31, 2005 totaled $90.0 million and net cash used in operations for the quarter totaled $8.5 million. Days Sales Outstanding (DSO) were 75 and down from 78 days at the end of the first quarter of 2005.
The Company will hold a conference call following the release after the close of market at 5:00 p.m. EST. Thursday, December 8, 2005.
On the call, senior management will review first quarter 2006 earnings. Investors and analysts are invited to participate on the call. A live, audio-only webcast of the call will be made available to the public on the Company's website at http://investor.ssaglobal.com and will be archived for approximately three months following the call. In addition, a replay of the call will be available approximately one hour after the conference call concludes and will remain available through Thursday, December 15th. To access the replay, dial 1-888-286-8010 in the U.S. and Canada, or 1-617-801-6888 outside U.S. and Canada, passcode 70534692.
For more detailed financials click here.
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