Q3 2009: Another strong order intake for Unit 4 Agresso, with a record EBITDA margin

Sliedrecht, the Netherlands, 12 October 2009

With significant orders across Unit 4 Agresso, Q3 2009 was better than expected. The expectation was that Q3 would end slightly below the same period in 2008, since that was a record 3rd quarter at the time (EBITDA +63%). But after a good July and August 2009, September was the best month of the year for the group, with record profitability.

In September 2009, Unit 4 Agresso scored a significant order from one of the most prestigious universities in the USA, which offers further growth potential in coming years. Growth was also seen in the public sector in the UK. A number of deals which were expected in the beginning of Q4 closed this quarter.

Q3 results*
The total Q3 revenue amounted to € 90.1 million, a decrease of 6% compared with the reported revenues over the third quarter of 2008. Based on constant currencies, the revenues declined 3%. The gross margin increased from 90.2% in Q3 2008 to 91.2% in Q3 2009. The EBITDA rose in total by 13% to € 18.9 million - due principally to synergies and cost savings. The EBITDA margin in Q3 2009 was 21.0%, compared to 17.5% in Q3 2008.

CFO Edwin van Leeuwen said: "Although it is too early to say that the economy is improving, we are glad that we have reduced the pressure on Q4. For the rest of the year (Q4) we need only a slightly higher EBITDA than Q3 to make our target. It is encouraging to see us continuing to win substantial deals for Agresso and CODA, particularly in competition with the large, traditional ERP players."

Financialforce.com - which was officially announced two weeks ago - is now showing a high level of attention and leads, keeping the new sales team busy on both sides of the Atlantic.

* Unaudited and compared with reported Q3 2008