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CEGID GROUP 
By Cegid Group
Third quarter 2013
SSRS sales: ?41.6M (Q3 2012: ?41.6M)
SaaS sales: up 34%
Total sales: ?57.1M (Q3 2012: ?59.9M)
First nine months of 2013
SSRS sales: ?128.3M (up 6%)
Recurrent revenues: ?110.8M (60% of total sales)
Total sales: ?185.8M (9 mos. 2012: ?185.2M)
Continued strong growth in SaaS businesses
| Consolidated sales (? M) Unadjusted scope* | Q3 2013 | Q3 2012 | Change Q3 | 9 mos. 2013 | 9 mos. 2012 | Change 9 mos. |
| Licenses | 5.6 | 7.6 | -26.7% | 21.5 | 22.2 | -2.9% |
| SaaS | 9.7 | 7.3 | +34.5% | 27.9 | 19.5 | +43.0% |
| Maintenance | 25.2 | 25.1 | ns | 75.7 | 75.6 | ns |
| Other | 1.1 | 1.6 | -31.2% | 3.2 | 3.7 | -14.0% |
| Total Software and software-related services (SSRS) | 41.6 | 41.6 | ns | 128.3 | 121.0 | +6.0% |
| Professional services | 10.0 | 11.1 | -10.5% | 38.8 | 41.4 | -6.3% |
| Total SSRS and professional services | 51.6 | 52.7 | -2.1% | 167.1 | 162.4 | +2.9% |
| Hardware distribution and other | 5.5 | 7.2 | -23.3% | 18.7 | 22.8 | -18.0% |
| TOTAL | 57.1 | 59.9 | -4.6% | 185.8 | 185.2 | +0.4% |
| of which recurrent | 37.3 | 35.0 | +6.5% | 110.8 | 103.2 | +7.4% |
*changes in scope during Q3 2013: ?0.2M; during the first nine months of 2013: ?1.2M
Third quarter 2013
Against a background of strong growth in SaaS (On Demand solutions, employment/tax filing portals), sales of SaaS solutions (?9.7 million) rose more than 34% compared with the third quarter of 2012. The volume of contracts signed in the third quarter increased by more than 60% compared with the same period of the previous year(1).
Given the changing product mix, Q3 revenues from Licenses totaled ?5.6 million, vs. ?7.6 million a year earlier, keeping in mind that July 2012 was particularly high and created an unfavorable base of comparison. After including software maintenance revenues and other sales, total revenues from software and software related services (SSRS) remained in line with that of Q3 2012 (?41.6 million).
Revenues from SSRS and professional services, which saw a decline in service activities, totaled ?51.6 million (?52.7 million in Q3 2012). Hardware distribution and other sales, down by almost 24%, was in line with the trend toward higher value-added sales.
Total sales in the third quarter of 2013 stood at ?57.1 million, vs. ?59.9 million in Q3 2012 (down 4.6% unadjusted and down 4.9% at constant scope).
The recurrent portion of sales (SaaS, portals, software and hardware maintenance), up 6.5% from Q3 2012 (6.1% at constant scope), totaled ?37.3 million or 65% of total sales.
: estimated, unaudited amount, evaluated on the basis of contracts recognized during the period and extrapolated over 36 months in accordance with standard sales terms and conditions.
First nine months of 2013
Cegid's sales in the first nine months of the year totaled ?185.8 million, vs. ?185.2 million in the year-earlier period. "Licenses + SaaS" sales amounted to ?49.4 million, rising almost 19%.
As of September 30, 2013, future contract revenues from SaaS & portals-i.e. revenue to be recognized before 2018-represented an estimated value of more than ?57 million. This total was up 52.5% from September 30, 2012 (?37.6 million) and included more than ?3 million from new customers, the rate of increase having accelerated from the year-on-year rise of 46% as of June 30, 2012.
Recurrent revenues (SaaS, portals and maintenance) thus totaled ?110.8 million and represented 60% of consolidated sales for the first nine months (up 7.4% compared with the first nine months of 2012).
Internationally, Cegid saw continued expansion, with sales over the first nine months of 2013 (excl. recurrent revenues) rising 13%, essentially in the Retail sector.
| Consolidated sales (? M) Unadjusted scope | Q3 | 9 mos. ended Sept. 30 | of which "SSRS and professional services" | of which "Hardware distribution and other" | |
| CPAs, small companies | 2013 | 22.8 | 70.8 | 60.6 | 10.2 |
| 2012 | 23.5 | 71.3 | 58.4 | 12.9 | |
| Mid-market and groups | 2013 | 14.7 | 48.0 | 46.9 | 1.1 |
| 2012 | 15.0 | 47.5 | 46.4 | 1.1 | |
| Vertical markets | 2013 | 15.6 | 53.6 | 47.7 | 5.9 |
| 2012 | 16.8 | 52.7 | 45.7 | 7.0 | |
| Public sector | 2013 | 3.4 | 11.6 | 11.6 | 0.0 |
| 2012 | 3.9 | 11.4 | 11.4 | 0.0 | |
| Miscellaneous | 2013 | 0.6 | 1.8 | 0.3 | 1.5 |
| 2012 | 0.7 | 2.3 | 0.5 | 1.8 | |
| Total | 2013 | 57.1 | 185.8 | 167.1 | 18.7 |
| 2012 | 59.9 | 185.2 | 162.4 | 22.8 | |
Effect of changes in the scope of consolidation in Q3 2013: ?0.2 million
Effect of changes in the scope of consolidation in the first nine months of 2013: ?1.2 million
(estimated, unaudited figures)
Breakeven point under control and improvement in financial structure
The continuing favorable trend of the product mix and its effect on the gross margin, combined with tight control over operating expenses, made it possible to maintain the monthly breakeven point, estimated at ?18.3 million as of September 30, 2013, below that of September 30, 2012 (?18.9 million).
First-half 2013 cash flow, plus the third quarter amount, together with a change in working capital requirements in Q3, generated surplus cash of around ?11 million. This was used to pay down financial debt to ?63.1 million (vs. ?74.1 million as of September 30, 2012).
As of September 30, 2013, Cegid had a syndicated line of credit totaling ?200 million, of which ?133.5 million was available. This line provides Cegid with a significant drawdown capacity for future years, which it can use to finance its investment needs. Between 2014 and 2017, it will be amortized annually on June 30.
Outlook
Cegid has numerous strengths that should enable it to take advantage of a return to better economic conditions, specifically recurrent revenues and tight control of costs together with action plans aimed at supporting the transformation process by sharing skills and rationalizing product and service ranges.
Calendar
The full calendar of publication dates and upcoming events can be found at the following address: http://www.cegid.com/calendrier-financier:
http://www.cegid.com/calendrier-financier
(The figures included in this press release are unaudited, preliminary estimates.)
This English translation is for the convenience of English-speaking readers. However, only the French text has legal value. Consequently, the translation may not be relied upon to sustain any legal claim, nor should it be used as the basis of any legal opinion. Cegid Group expressly disclaims all liability for any inaccuracy herein.
Financial communication
Stock market: Euronext Paris Segment C
ISIN code: FR0000124703
Reuters: CEGI.PA
Bloomberg: CGD FP
ICB: 9537 Software
Indices: Small, Mid and Small, ITCAC and All-Tradable
Cegid Group
52 quai Paul Sédallian
69279 Lyon Cedex 09
Tel.: +33 (0)4 26 29 50 20
dirfin@cegid.fr / www.cegid.com
http://hugin.info/143382/R/1734902/581192.pdf
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: CEGID GROUP via Thomson Reuters ONE
