Hubwoo Announces 2010 Annual Results

PARIS, March 31, 2011 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading global provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for 2010, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Greg Mark, Hubwoo Chairman & CEO commented: "We are pleased to report 9% growth over 2009 and a dramatic improvement on EBITDA and EBIT. 2010 was a year in which we maintained cost control, grew our SaaS and services revenue, and made major strides in our SAP customer focused go-to-market strategy. We are now prepared for even greater growth in 2011 as our partnership with SAP has strengthened."

1. 2010 Key Results:

2010 accounts are audited and will be certified following approval from Board of Directors in April.

Revenues

2010 overall revenue was EUR 37.6 million, up 9% as compared to 2009.  Growth was achieved in both the recurring and highly predictable SaaS*** component of revenue as well as our services revenue.

2010 services revenue was up 27% from 2009, largely due to the implementation of several significant new SRM customers as well support of on-premise and SAP Sourcing OnDemand deployments.

(*)EBITDA: Operating result before depreciation and non-recurring items.

(**) EBIT: Earnings before interest and taxes

(***) SaaS is a model of delivering technology where a software solution is hosted ,on-demand, as a service for its customers.  Clients do not buy the technology but rather pay a subscription fee to use it.

We remain cautious on Q1 2011 revenue expectations, as a consequence of the combination of seasonality in supplier revenues and delays in new projects signatures and their implementations.

Profitability

Following continued efforts in cost optimisation, restructuring of specific areas of the business and reallocation of resources in those areas capable to deliver stronger growth and profitability, EBITDA in 2010 showed a dramatic improvement from EUR 2.7 million in 2009 to EUR 4 million in 2010.

Over H2 2010, EBIT was positive at a level of EUR 0.6 million.

Goodwill

In accordance with IFRS, a goodwill impairment test has been conducted by analyzing the market and its growth potential and by evaluating the company's fair market value. Since the fair value is higher than the book value, no goodwill depreciation has been accounted for.

Cashflow

In 2010, the company's operating cash-flow has improved dramatically, from EUR 1.1 million in 2009 to 3.0 million in 2010. Working capital change is only slightly negative (- EUR 0.23 million), reflecting sound cash management operations.

The level of financial debt is stable, at EUR 2 million, after EUR 1.4 million debt reimbursements, essentially reflecting leasing repayments over the year.

The year end cash position was at EUR 3.7 million, slightly above 2009 end cash of EUR 3.5 million.

2. 2010 major events:

New Buyer Customers

During the year, Hubwoo signed 28 new technology contracts with buyers.  By the end of 2010, the total number of buyer technology customers amounted to 150, an increase of 25% during the year.

Sales in 2010 were exceptionally strong in the Americas.

The Business Network Growth

Supplier community volumes surpassed 130,000 active suppliers at the end of 2010, up 85% over 2009.  Critical mass in suppliers increases business value for buyer customers, as well as provides a long term vehicle for incremental network revenue streams.

About Hubwoo (www.hubwoo.com)

Hubwoo is a leading global provider of Cloud Procurement solutions within the SAP community.  The Company manages a Business Network with over 130,000 active suppliers and over 150 major international corporations as buyer customers of which 50+ are in the Global 1000.  Significant customers include Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Michelin, Henkel, Statoil, The Hershey Company, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, and The Dow Chemical Company.  The Company has international offices in Europe, Americas and Asia and is a strategic partner of SAP and IBM.

Listed in Compartment C on the Euronext Paris Eurolist.

ISIN: FR0004052561, Euronext: HBW.NX, Reuters: HBWO.PA, Bloomberg: HBW:FP

SOURCE Hubwoo