Q3 2010: UNIT4 on Track After Closing Q3

Oct 14, 2010, 13:29 ET from UNIT4 NV

SLIEDRECHT, Netherlands, October 14, 2010 /PRNewswire/ -- Q3 2010 ended above plan with significant orders from across the UNIT4 group. In particular the public sector in the UK and the private sector in Spain exceeded expectations. In addition a number of deals were closed in Asia Pacific. The original expectation for Q3 was to end below the same period in 2009, since that had been a record 3rd quarter with large deals including the order from Harvard University.

Q3 results

The total Q3 revenue amounted to $139.4 million*, a total increase of 10% compared to the reported revenues in the third quarter of 2009. This is a particularly significant increase when taking into account that organic service revenues are lower as a result of reorganizations which have reduced the number of consultants in some countries.

The gross margin increased from 91.2% in Q3 2009 to 92.4% in Q3 2010.

Despite continuing investments in FinancialForce.com, EBITDA improved 6% to $28.3 million* (Q3 2009: $26.6 million*).

The EBITDA margin in Q3 2010 was above 20%, just slightly below the margin in Q3 2009.

CFO Edwin van Leeuwen said: "Although the economy and investment capacities in markets worldwide are not in optimal health and business environments are still challenging, we have again achieved growth in licenses (>20%) and subscriptions (>35%). The healthy performance in Q3 means that we are confident that we will make the full year target. To make the target for the full year we need an EBITDA in Q4 of at least $38.0 million*, which is equal to that achieved in Q4 2009."

Publication of annual figures for 2010 will take place on 22nd February 2011 (after market closing in The Netherlands).

This document contains certain future expectations about the financial state of affairs and results of the activities of UNIT4 as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors can cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important economies, statutory changes and changes in financial markets, in pension costs, in the salary levels of employees, in future exchange and interest rates, in future takeovers or divestitures and the pace of technological developments. UNIT4 therefore cannot guarantee that the expectations will be realized. UNIT4 also refuses to accept any obligation to update statements made in this document.

*Converted from Euros at a rate of EUR1 : US$1.407

About UNIT4 - http://www.unit4.com

UNIT4 is a global business software and services company aimed at helping dynamic organizations to embrace change simply, quickly and cost effectively in a market sector it calls 'Businesses Living IN Change' (BLINC)(TM). The Group incorporates a number of the world's leading change embracing software brands including Agresso Business World and CODA financial management software.

UNIT4 trades in North America through two main subsidiaries: UNIT4 Software, Inc. which focuses on Agresso Business World and Travel solutions; and UNIT4 CODA, Inc. which sells and supports the CODA Financials solution. It also has the majority holding in FinancialForce.com, the cloud accounting provider based in San Mateo, which it jointly owns with salesforce.com.

UNIT4 is a top six mid-market ERP software player globally and the 2nd largest European ERP supplier. With offices in 15 European countries, as well as 6 countries across North America, Asia Pacific and Africa and sales activities in several other countries, revenue of EUR379.4 million was realized in 2009. UNIT4 is headquartered in Sliedrecht, the Netherlands. The company has 4,161 employees (30 September 2010).

UNIT4 is listed on Euronext Amsterdam by NYSE Euronext and is included in the Amsterdam midcap Index (AMX). For more information on UNIT4 or any of its operating companies, please visit the website at http://www.unit4.com.

    For further information, please contact:

    UNIT4 N.V.
    Chris Ouwinga CEO or Edwin van Leeuwen CFO
    Phone : +31(0)184-444444
    Fax : +31(0)184-444463
    E-mail: edwin.van.leeuwen@unit4.com