Click here to close now.

Welcome!

Web 2.0 Authors: Carmen Gonzalez, Alena Prokharchyk, Jacob Olcott, Pat Romanski, Roger Strukhoff

News Feed Item

UNIT4 Reports Growth in Revenues and Operating Profit

SLIEDRECHT, THE NETHERLANDS -- (Marketwired) -- 02/17/14 -- UNIT4 Group, the global leader in software that supports business change, has reported its financial results for 2013.

Highlights included:

  • Total revenue increased by 4.4% to USD $672.0 million (EUR 490.5 million) (2012: USD $643.6 million (EUR 469.8 million))
  • FinancialForce.com revenue increased 85% with annual run rate up 80% to USD $30.6 million
  • EBITDA, excluding FinancialForce.com and costs related to the potential public-to-private acquisition of UNIT4, rose 14.7% to USD $149.7 million (EUR 109.3 million) (2012: USD $130.5 million (EUR 95.3 million))

SaaS and subscription revenues continued to show a strong upward trend, with growth of 42.3% compared with 2012. Traditional perpetual product revenue showed a small decline of 5.5% to an amount of USD $98.9 million (EUR 72.2 million). The strong growth in SaaS and subscription resulted in growth in the annual run rate of SaaS and subscriptions from USD $78.1 million (EUR 57.0 million) at year-end 2012 to USD $108.8 million (EUR 79.4 million) at year-end 2013, an increase of USD $30.7 million (EUR 22.4 million) or approximately 40%.

The trend towards SaaS and subscription is clearly evident and UNIT4 is actively shifting towards this model. Increasing numbers of potential customers are considering moving to the cloud, including for full ERP suites, and UNIT4 is able to meet that demand.

In 2013 total revenue grew by 4.4% to USD $672.0 million (EUR 490.5 million) (2012: USD $643.6 million (EUR 469.8 million)). Total recurring revenues now represent almost 54% of total revenues (2012: 52%).

International growth
2013 saw strong growth group-wide in SaaS and Cloud based solutions, and UNIT4 is well positioned to further benefit from the rapid market trend away from traditional on-premises systems.

In the UK we enjoyed significant success from a strategic partnering model which we are now seeking to develop across the group. The UK's long-term partner strategy delivered major joint initiatives. Following a contract with arvato, Agresso became the cloud based platform for the UK Government's first independent shared service centre. The BT Global Services contract for London Tri-Boroughs shared service saw Agresso again delivered via an outsourced cloud based service.

In North America SaaS revenues grew 41%. We continued to build momentum in key service sectors including non-profit, financial services and local government, with successes including a $2.3 million agreement with the City of Medicine Hat.

In Germany we signed significant local government contracts and successfully went live on Agresso in four Saxony state organizations in less than six months. We signed up more than 20 new partners to implement and resell UNIT4 solutions.

In Spain and Portugal, the Ekon cloud business grew by 60% while Agresso sales were up 80% including contracts at Randstad in Portugal and Kutxa Bank in Spain.

In Benelux, the Business Software division made significant progress in Higher Education (signing Wageningen University & Research Centre, its first University), healthcare, the commercial sector, the Belgian government sector and with Agresso Wholesale. The Accountancy division added 175 new customers while the Healthcare division achieved double digit growth and proved successful in larger organizations including Stichting Philadelphia and Cicero Zorggroep.

In Sweden strategic deals included the City of Gothenburg and HSB GIT and cloud sales continued strongly. A record year in Norway saw double digit growth and 31 new customers, including 13 in local government and 10 resulting from a new focus with partner IT-Nor on fast growing SMEs mainly in the oil service sector. In Denmark revenue grew 79% with SaaS up 30%. Agresso was sold to one of the country's largest companies.

In France we bought our distributor Agresso France, and consolidated three operations into a single entity. Even with all this change license revenue grew 25%.

In Asia, we saw a remarkable 50% growth in licenses and 35% growth in SaaS. UNIT4 Prosoft's HRMS introduced Chinese payroll capabilities, which will open up more market opportunities in the region.

FinancialForce.com

FinancialForce.com, the US-based cloud applications company formed with minority investment from salesforce.com, again grew strongly in 2013. Investment in FinancialForce.com was increased to support the growing momentum and opportunities in the fast-growing cloud applications market.

Total revenue grew 85%, with the annual run rate in December 2013 (including services) reaching $30.6 million, compared to $17.0 million in December 2012 (+76%) and $21.5 million in June 2013. This illustrates how strongly growth accelerated in the last few months, where only limited revenues could be recognized. The number of new customer deals was up more than 50% over 2012, with growth achieved across the small business, mid-market and enterprise sectors. Notably, FinancialForce.com's penetration of the enterprise market increased, particularly with its Billing and PSA applications. The number of customers using both core applications -- Accounting and Professional Services Automation (PSA) -- more than doubled and deal size (annual run rate) also grew.

In order to drive growth staff numbers increased 60% in 2013 to 250 FTEs across the US, UK and Spain and investment in marketing grew by more than 75%. In November, the company moved closer to providing a full cloud ERP with two acquisitions: Vana Workforce, a global human capital software provider and maker of a leading HR application on the Salesforce platform; and the business and assets of Less Software including the firm's Supply Chain Management (SCM) solutions. The applications have been re-branded FinancialForce Human Capital Management (HCM) and FinancialForce Supply Chain Management (SCM) respectively. FinancialForce.com can now offer companies a unified set of applications sharing the same cloud as Salesforce CRM including Financial Management, Professional Services Automation, Supply Chain Management and Human Capital Management.

Advent International
On 18 November 2013 UNIT4 and Al Avocado B.V., a company ultimately indirectly controlled by funds advised and managed by Advent International Corporation, jointly announced that they had reached conditional agreement on the intended public offer for all issued and outstanding ordinary shares in the capital of UNIT4 at an offer price of USD $53.08 (EUR 38.75) (cum dividend) in cash per issued and outstanding ordinary share of UNIT4 (the "Offer"). The Offer Memorandum was published on 20 December 2013. The Offer values 100% of the UNIT4 shares at USD $1,606 million (EUR 1,172 million). The Offer condition in relation to competition clearance has been satisfied following regulatory clearance from the European Commission and the Federal Trade Commission and Antitrust Division of the US Department of Justice in connection with the Offer.

An extraordinary general meeting of shareholders shall be held at 15:00 hours on 19 February 2014. Holders of shares in the capital of UNIT4 shall have the opportunity until 28 February 2014 at 17:40 hours CET to tender their shares under the Offer, unless the Offer period is extended.

Commenting on the future, UNIT4's new CEO, José Duarte said: "Business change is the norm now and it's accelerating. Business agility is not something most ERP software has traditionally provided. Enterprise IT infrastructures were built to last, not built to change, but vendors have to re-architect and re-imagine software to enable and support change. Social, mobile, analytics, and cloud are the four megatrends impacting most business. Our recent Agresso Milestone 4 software launch signifies a new era of ERP built for people-centric businesses, innovating with new social and mobile technologies, analytics and cloud. We're in a strong position to capitalize on these trends based on the most change-friendly software on the market and we're excited about the future."

The full announcement is available on the UNIT4 Investor News site.

About UNIT4

UNIT4 is a global cloud-focused business software and services company aimed at helping dynamic public sector and commercial services organisations to embrace change simply, quickly and cost effectively. The Group incorporates a number of the world's leading change embracing software brands including Agresso, our flagship ERP suite for mid-sized and large services intensive organisations; Coda, our best-of-class financial management software; and FinancialForce.com, the cloud applications company formed with investment from salesforce.com.

With operations in 26 countries worldwide, revenue of USD $672.0 million (EUR 490.5 million) was realised in 2013. UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees.

For more information on UNIT4 or any of its operating companies, please visit the website at www.unit4.com, follow us on Twitter @UNIT4_Group or visit our Facebook page http://www.facebook.com/UNIT4BusinessSoftwareNV

Conversion 1 EUR = USD $1.370

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 the 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 will not accept any obligation to update statements made in this document.

Press contact:

Hilary Pike
UK PR Manager
UNIT4
+44 (0) 7810 657 778
Email Contact
@hilaryjg

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.