CIMdata PLM Industry Summary Online Archive

9 March 2006

Financial News

SSA Global Reports Final Second Quarter Fiscal Year 2006 Results

SSA GlobalT announced final financial results for the second quarter ended January 31, 2006.

"SSA Global continues to execute against its long term strategy of acquiring market share and developing customer share. Our year over year license growth is evidence of solid progress coupled with a high level of operational performance across the business. Yesterday we announced the acquisition of Provia Software, a leader in supply chain execution solutions and we welcome the employees and customers into the SSA Global team," said Mike Greenough, chairman, president and CEO of SSA Global.

Second quarter total revenue increased 6% to $187.9 million compared to $178.0 million last year.

License revenue for the quarter was $56.8 million, an increase of 11% from the second quarter last year and represented 30% of total revenue compared to 29% last year. On an organic basis, excluding Epiphany's contribution in the quarter and normalizing for foreign exchange equalization, license revenue grew 7%.

The acquisition of Epiphany, which closed on September 29, 2005, contributed $15.4 million to total revenue and $4.3 million to license revenue in the quarter.

During the second quarter, North America contributed 46% of total revenue; Europe, Middle East and Africa (EMEA) contributed 39%; and Asia-Pacific/Japan (APJ) and Latin America contributed 15%. For the quarter, 1,178 contracts were signed, including 56 new customers that represented 8% of the total license value associated with software contracts signed in the quarter.

On an adjusted basis for the second quarter, total revenue grew 6% to $188.5 million and net income grew 10% to $18.7 million or $0.25 per diluted share up from $17.0 million or $0.23 per diluted share last year. (Adjusted revenue, net income and earnings per diluted share includes deferred license revenue associated with the Epiphany acquisitions 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 $6.6 million compared to $8.0 million last year, and earnings per diluted share under GAAP was $0.09 this quarter.

Cash and cash equivalents as of January 31, 2006 totaled $136.0 million and net cash provided by operating activities for the quarter totaled $49.5 million. Days Sales Outstanding (DSO) were 89 and down from 97 days at the end of the second quarter last year.

The Company will hold a conference call following the release after the close of market at 5:00 p.m. EST.

Date: Thursday, March 9, 2006

Time: 5:00 p.m. EST

Dial in: +1 (866) 277-1184 or outside the U.S.

+1 (617) 597-5360

Passcode: 28489575

On the call, senior management will review second quarter 2006 earnings. Investors and analysts are invited to participate on the call. Please dial in approximately ten minutes prior to the 5:00 p.m. start time. 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, March 16th. 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 34015897.

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