Prodware: 2010 Results Excellent Performance

Mar 15, 2011, 09:19 ET from Prodware

    - EBITDA: +630 Basis Points to 19.1%
    - Operating Income: X 3 to EUR9.8 Million
    - Net Income: +55% to EUR8.2 Million

    IFRS Norms                            2010     2009
    (EUR million)
    Turnover                              83.5     84.3
    EBITDA(1)                             16.0     10.8

    as a % of the turnover              19.1 %   12.8 %
    Current Operating Income              10.1      5.6
    as a % of the turnover              12.1 %    6.7 %
    Operating Income                       9.8      3.3
    as a % of turnover                  11.7 %    3.9 %
    Net Income                             8.2      5.3
    as a % of turnover                   9.8 %    6.3 %

Prodware, a leading IT solution and services provider for businesses, publishes excellent 2010 results.

Strong organic growth

In 2010, Prodware Group achieved a turnover of EUR83.5 million up 7.5%, on a comparable basis, in a market of limited growth. This performance is due to:

- the success of its industry and sector software solutions with large French and international accounts, as well as mid-market companies.

- the growth in sales of its SaaS solutions.

Significant increase in margins

The sharp increase of the operating ratios confirms the evolution of Prodware's business model towards software development.

After a second half year even better than the first, the Group EBITDA increased 48%, on an annual basis, to EUR16.0 million, 19.1% of turnover as December 2010. Its operating income was up 80% to EUR10.1 million, representing a margin of 11.8%.

As a result of the structural optimization program carried out in 2009, the operating income of Prodware was multiplied by 3 to EUR9.8 million.

Net income rose 55% to EUR8.2 million.

To accelerate the evolution of its product mix towards software development, the Group has in 2010 continued its research and development efforts.

Further improvement in gearing(2)

In the second half year, the Group has continued to work on the improvement of its gearing ratio that stood at 49% at the end of December 2010 versus 53% at the end of June 2010 and 73% at the end of December 2009.

Shareholder loyalty

As part of the program initiated in 2009 for generating shareholder loyalty it will be proposed, at the upcoming General Assembly on June 30th, that the company pays a dividend of 6 cents per share, up 50%.

Outlook: 2011, a new phase of the development strategy 2010-2015

Prodware will capitalize on the clear competitive advantages provided by its range of industry and sector software solutions to grow internationally in countries with strong potential while accelerating its indirect sales through the Microsoft global partner network.

Friday, March 18th at 11:30 on the premises of the SFAF (24, rue de Penthievre, 75008 Paris) Philippe Bouaziz, President, and Stephane Conrard, Chief Financial Officer, will present the 2010 results and the 2011 outlook.

Concerning Prodware

Founded in 1989, PRODWARE ( creates, integrates and hosts IT solutions for businesses. This activity is exercised in a sector where success necessitates a blend of strong IT expertise and industry specific know-how, specifically in administrative and management processes.

PRODWARE already helps more than 17 500 active clients and is the key actor and partner for the installation and management of global IT solutions and applications. Present in 10 countries and through strong strategic alliances the Group supports companies in their international expansion.

A good corporate citizen Prodware joined the United Nations Global Compact in 2009.

    Prodware is listed on the NYSE - Euronext exchange
    ALTERNEXT - ISIN FR0010313486 - ALPRO - FTSE 972 Services informatiques
    Eligible FCPI -

(1) EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization

(2) Gearing = (short and long term financial liabilities - cash and cash equivalents) / shareholder equity

    Sandra Chokron
    Head of Corporate Legal Affairs
    T : +33(0)9-79-99-90-05

    Marie-Anne Garigue / Gregory Bosson
    T : +33(0)1-53-65-68-63 / +33(0)1-53-65-37-90

SOURCE Prodware