(Source: Business Wire)
CDC Software Corporation (NASDAQ: CDCS), a global provider of enterprise
software applications and services, today announced that, based on
preliminary financial projections and estimates, the company expects
third quarter 2009 GAAP net income to be in the range of (U.S.)$5.8
million to (U.S.)$6.4 million and Adjusted EBITDA (a) to be
in the range of (U.S.)$12.9 million to (U.S.)$13.5 million, exceeding
Wall Street estimates for the quarter.
First Call consensus estimates for CDC Software's third quarter of 2009
are (U.S.)$4.6 million for GAAP net income and (U.S.)$11.5 million for
Adjusted EBITDA. Third quarter non-GAAP net income per share (a) is
expected to be in the range of (U.S.)$0.32 to (U.S.)$0.34 cents per
share. This exceeds the First Call consensus estimate of (U.S.)$0.27 per
share for non-GAAP net income per share. CDC Software expects third
quarter 2009 revenue to be in the range of (U.S.)$48.3 million to
(U.S.)$48.9 million, which is in line with First Call consensus
estimates.
"We are pleased that, according toour preliminary estimates, we expect
to exceed Wall Street consensus for Non-GAAP net income per share by 22
percent," said Peter Yip, CEO of CDC Software. "Third quarter GAAP net
income and Adjusted EBITDA are expected to exceed analyst consensus by
33 percent and 15 percent, respectively. Third quarter EBITDA margin is
expected to increase to 27 percent compared to 22 percent in the same
period last year. It is also important to note that since CDC Software
went public in August, this is the second consecutive quarter we have
beaten our internal quarterly expectations, which we believe were the
most appropriate measurements for us at the time since analyst coverage
of CDC Software did not start until the third quarter, which in itself
exceeded analyst expectations. As for the current quarter, our fourth
quarter sales pipeline has continued to increase and has shown steady
growth over the last four quarters. In addition, our cross-sell
opportunities in the fourth quarter have continued to increase along
with the growth in our sales pipeline. We also are seeing organic sales
growth and expect license revenue from new logo customers to double in
the third quarter of 2009 compared to the second quarter of 2009. We
have already closed several significant deals in food and beverage and
the financial services industries in the fourth quarter."
Yip added, "Despite the global recession and subsequent slow recovery,
we believe we are well positioned to continue improving our business
fundamentals and key operational metrics. Finally, with improving
operating metrics and increasing net cash on handestimated to be
approximately $60 million at the end of the third quarter, we are poised
to continue our growth through organic and cross-sell sales
opportunities, as well as synergistic acquisitions in both the
on-premise as well as Software as a Service (SaaS) models."
CDC Software
Unaudited Reconciliation From GAAP Results to Adjusted EBITDA and Adjusted Net Income Based on the Mid Point of the Range
(Amounts in thousands of U.S.