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CDC Software Estimates Record First Quarter 2008 Revenue Company Estimates 12 Percent Increase Over First Quarter 2007 BEIJING & ATLANTA--(BUSINESS WIRE)-- CDC Software, a wholly owned subsidiary of CDC Corporation, (NASDAQ: CHINA) and a leading provider of industry-specific enterprise software applications and business services, today announced preliminary revenue results for the first quarter of 2008. CDC Software expects total revenues for the first quarter of 2008 to be between US$84.6 million and US$85.6 million, which would be a first quarter record for the company and an increase of approximately 12 percent from US$76.2 million in the first quarter of 2007. Software license revenues are expected to be approximately US$12.0 million which would represent a decrease of 15.5 percent from US$14.2 million in the first quarter of 2007. "We are pleased to begin 2008 with our best-ever first quarter revenue in the history of CDC Software," said Eric Musser, president and CEO of CDC Software. The first quarter is typically the weakest quarter seasonally in the software industry and in spite of the slowing economy which has impacted our new license sales and the software industry overall, our overall results reflect the strength of our installed base of over 6,000 customers globally. Our revenues from maintenance, services and software sales to our existing customers were virtually on par with our original budget for the quarter. We believe that these recurring revenues and increasing cross-selling opportunities with acquired products will help keep us in a very healthy position as companies postpone new software purchases but continue to invest in software and services related to their existing systems. To address this continuing demand from our exiting customers, we are in the process of launching major upgrades and additional product modules for our primary product lines including Pivotal CRM, Saratoga CRM and Ross Enterprise. We believe these enhancements and new add-on products will drive increases in upgrades within our installed base of customers will help spur our consulting services and software deployment expansions. "In addition to our focus on leveraging the full potential of our installed base of customers, we are also taking steps to preserve and improve our bottom-line profits. We are very pleased with our continuing progress in streamlining our global research and development function through the expansion of our highly cost-effective centers in China and India. This shift is enabling us to expand and accelerate the development of strategic products while we keep our overall development costs at targeted levels. Last fall, we enacted cost reduction initiatives that reduced annual operating expenses by approximately US$7.5 million. We recently completed another round of consolidation to further improve efficiency by eliminating duplicate functions among our various acquired companies. These moves have resulted in additional annualized cost savings of approximately US$8.8 million. With our lower cost base and the strength of our 6,000-plus global customer base, I believe CDC Software is in the best position ever in company history to continue our growth strategy, and continue to see improvements in operating margins over the next few years." CDC Software has also been aggressively expanding its operations in China. Most recently, CDC Software entered a binding agreement to acquire a stake in Tenly Software, one of China's leading providers of business intelligence solutions. Tenly's flagship product, Markway Analysis System, is being used widely throughout the national government and ministry in China. Markway Analysis System has been certified by the Chinese Statistics Association as the national standard of statistical analysis and data mining platform, and it has been adopted by China's National Bureau of Statistics as the official analytics tool and recommended for use nationwide. It is also used by the Chinese Ministry of Education as the designated software for national testing and NIT certification examinations and has been adopted by the National Evaluation Center of Information Technologies as the designated software for data analysis in the Fortune 500 companies of China. Last month, CDC Software also acquired a majority stake in Integrated Solutions Limited (ISL), a Hong Kong-based vendor of ERP systems that mirrors CDC Software's focus and success as a vertical industry specialist. The company provides complete ERP solutions designed to address the needs of small and medium-sized discrete manufacturers in the electronics, toy, watch and furniture industries in China. ISL has more than 150 customers in southern China, including Ansen Electronics, Artfield Manufacturing, Verint Systems, Unilux Time, and Kendy Enterprise. CDC Software has already successfully completed a joint sale including the ISL discrete ERP system and CDC Software's Platinum HRM system for China. In the Fall of 2007, CDC Software agreed to form a joint venture with FlexSystem Limited, one of the leading enterprise software solution providers in China. CDC Software intends that the joint venture will develop human resources, payroll and accounting software as a service (SaaS) applications for initial deployment throughout China, and that these applications will be marketed and sold directly by CDC Software and offered on a subscription basis with very low up-front costs. "China is recognized as the largest manufacturing market in the world and one of the world's largest and most rapidly growing markets for enterprise software," said Peter Yip, executive chairman of CDC Software. "We are leveraging our established presence and experience in China and our expertise in enterprise software systems for manufacturers to take advantage of this significant growth opportunity. As we continue to grow and maintain our competitive advantages as vertical industry specialists in our other established geographies, such as North America and Europe, we expect our China operation to grow even more rapidly and become an increasingly strategic market for us." |
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| aus der Diskussion: | CDC Corporation Informations Thread |
| Autor (Datum des Eintrages): | Langen63 (17.04.08 22:35:24) |
| Beitrag: | 4,645 von 4,866 (ID:33913533) |
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