Hubwoo Announces Q4 2010 Results

PARIS, Jan. 27, 2011 /PRNewswire/ -- Hubwoo (EPA: HBW), the world's leading provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for Q4 2010, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

Greg Mark, Hubwoo Chairman & CEO commented: "We are pleased to announce the achievement of a record quarter in the history of our company, capping off a record year. This success is due to continued strong demand for SRM within the SAP customer base, continued market demand for solutions that drive rapid cost savings, and rising demand for, and acceptance of the cloud deployment model.  We continue to be pleased with the organic growth the company has experienced and look forward to 2011 with continued confidence as we deepen our relationship with SAP and the SAP Partner ecosystem."

1. Revenues:

2010 overall revenue was euro 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 On-Demand deployments.

Q4 2010 revenues showed significant increase compared to Q4 2009 (+22%), with the services component up 60%, showing improved market conditions for both new customers as well as for incremental solutions and services to existing customers.

The supplier network revenue component within SaaS, which is based on thousands of small supplier customers, was up 13% from euro 1.9M in Q4 2009 to euro 2.2M in Q4 2010.  The increase of new suppliers on the Hub and increased volume has spurred growth in this revenue component and is expected to continue in the future.

Sales and pipeline generation activity in both SaaS and Services continued to be strong for both the Americas and Europe.

2.  General description of the financial situation

Cost and investment

Following continued efforts in cost optimization, restructuring of specific areas of the business and reallocation of resources in those areas capable to deliver stronger growth and profitability, EBITDA of 2010 will show a significant improvement over 2009.

Q4 estimates on EBITDA confirm a positive trend and the achievement of a solid and stable cost base on which Hubwoo can build for future growth. The company will publish its 2010 audited accounts on March 31st 2011.

3. Major Q4 2010 events

Significant customer contracts in the quarter included Sigma-Aldrich, Barclay's, Britvic, Shell, Campbell's, Sara Lee, Monsanto and Telus.

Update to Board of Directors: Eddie Misrahi has notified the Board of Directors that he will relinquish his Board role to focus on his new expanded role as CEO of Apax MidMarket. "We are proud we have supported the company's growth for 10 years. We have helped the company in implementing a targeted-acquisition strategy and becoming a market leader. Today, we are confident that Hubwoo will continue to grow in the future, thanks to its best-in-class management team led by Gregory Mark," said Mr. Misrahi.

Greg Mark, Chairman of the Board commented: "On behalf of the members of the Board of Directors and the company as a whole, we wish to thank Mr. Misrahi for his support and visionary service to the Company and wish him well in his new position within Apax".

A new Director will be appointed at the upcoming Hubwoo Board of Directors meeting next week.

A milestone of 130,000 active businesses was reached on the Hubwoo Business Network Collaboration Hub in Q4 2010, up 86% from Q4 2009.  Network critical mass is a core component of Hubwoo's future revenue streams as we move into areas of business networking driven financial and informational derivatives.

About Hubwoo (www.hubwoo.com)

Hubwoo is the world's leading provider of Cloud Procurement solutions within the SAP community.  The Company manages a business-to-business network with over 150 major international corporations as its customers (including 50 in the Global 1000) and over 130,000 active suppliers.  Significant customers include Honeywell, Shell, Evonik, EDF, Nokia, Michelin, Henkel, Statoil, The Hershey Company, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, The Dow Chemical Company, and Graham Packaging.  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