Hubwoo Announces Financial Information for Q3 2012

PARIS, Oct. 31, 2012 /PRNewswire/ -- Hubwoo SA (Euronext: HBW.NX), a leading global provider of B2B buying and selling solutions in the cloud, today announced financial information for Q3 2012, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Gregory A. Mark, Hubwoo CEO commented "Clearly, uncertainty in the market concerning the future of Hubwoo's Cloud Procurement offerings, powered by SAP software, has caused a significant slowdown in new customer acquisition. Notwithstanding the decrease in revenues, namely services revenue, we remain committed to an aggressive investment plan aimed at extending Hubwoo's existing intellectual property and in so doing, create a new type of network, a business network. Utilizing open, intelligent and intuitive design, we look to solve real business problems with complex collaborative processes, in ways never before imagined prior to the advent of the digital network. This will not be just another document transaction platform, nor one that increasingly taxes commerce through the imposition of purchase order or invoice value based supplier fees. We look to innovate around well-accepted social, professional and B2C ecommerce network and platform principles, creating a new type of network offering, a business network. As a minimum, the remainder of 2012 will be a transitional period as we communicate our vision to the analyst community and begin to roll out new business network solutions into the market. We remain optimistic about the future while remaining cautious about the near term revenue impact during this transition."

1.    Q3 Revenues

Revenue in the quarter suffered from a challenging economic environment accentuated by competitive market conditions in which significant merger and acquisition announcements have delayed prospects' businesses decisions for new projects.

The recurring components of revenue remained stable in a YTD comparison to 2011, while services from one-time implementation projects declined (-23%) against 2011. Overall, total revenues decreased slightly (-6%) as compared to the first three quarters of 2011.

On a quarter to quarter comparison, SaaS was overall stable but one-time services showed a strong decline (-41%) as compared to Q3 2011 which had been one of the highest ever recorded in terms of services.

2.    Major Q3 2012 events

New Buyer Contracts and sales activity
Significant new contracts in the quarter included Philips, Pacific Rubiales, Boehringer, H.B. Fuller, and BVG.

Rationalization of Achat Pro acquisition
During the quarter, the Company shut down a significant portion of the technology platform obtained from the Achat Pro acquisition as part of our technology consolidation project. Future cost savings are expected. Additionally, as UniHA migrates its CHU hospital network onto Hubwoo's eBuy solution, resulting from the ten (10) year contract signed earlier this year, it is expected that the entire Achat Pro platform and data centre will be retired fully in early 2013.

About Hubwoo (www.hubwoo.com)

Hubwoo is a leading global provider of B2B buying and selling solutions in the cloud.  The Company manages a Business Network with hundreds of thousands of active businesses and over 100 major international corporations as buyer customers of which 50+ are in the Global 1000.  Significant customers include BASF, Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Nationwide, Michelin, Henkel, Statoil, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, and The Dow Chemical Company. 

Hubwoo has major operations in France, multiple U.S. centers, Germany, the U.K., Philippines, Belgium, and Eastern Europe.Listed in Compartment C on the Euronext Paris Eurolist.

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

SOURCE Hubwoo