CIMdata PLM Industry Summary Online Archive
27 October 2004
Financial News
SSA Global Reports Fourth Quarter and Fiscal Year 2004 Results
SSA GlobalT announced its financial results for the fourth quarter and for fiscal year ended July 31, 2004.
Total revenues for the fourth quarter were $175.4 million, compared to $92.9 million in the prior year's quarter, up 89 percent. License revenues were $49.4 million, up 62 percent compared to the fourth quarter of fiscal 2003. License revenue represented 28 percent of total revenue for the quarter ended July 31, 2004.
SSA Global's business strategy to acquire market share and grow customer share has resulted in year-over-year revenue increases. SSA Global acquired Baan in July 2003 and more recently has integrated the businesses of supply chain execution provider, EXE® Technologies, Inc.; transportation management software developer, Arzoon®, Inc., and process manufacturing solutions provider, Marcam.
Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) for the fourth fiscal quarter ended July 31, 2004 was $28.4 million compared to $16.2 million in the fourth quarter of fiscal 2003. EBITDA was $30.5 million for the quarter ended July 31, 2004 when excluding acquisition integration and other one-time costs of $2.1million. Net income for the fourth quarter was $4.2 million compared to $29.2 million last year. Net income in the fourth quarter of fiscal 2003 included a tax benefit of $19.4 million related to the reinstatement of deferred tax assets.
During the fourth quarter, North America delivered 43 percent of total revenue with Europe, Middle East and Africa (EMEA) at 38 percent. The emerging growth markets in Latin America and Asia-Pacific/Japan provided the remaining 19 percent of total revenue. In the fourth quarter of fiscal 2004, 662 software license contracts were signed, including 71 new SSA Global customers who purchased extended enterprise resource planning (ERP) solutions.
Total revenues for the fiscal year ending July 31, 2004, were $637.8 million, an increase of 115 percent from $296.6 million for the same period last year. License revenues were $158.8 million, up 69 percent compared to the prior year. Software license revenue represented 25 percent of total revenue. Revenues include contributions from recently integrated acquisitions.
EBITDA for the fiscal year 2004 was $105.7 million compared to $63.7 million last year. EBITDA was $122.5 million for the twelve months ended July 31, 2004 excluding acquisition integration and other one-time costs of $16.8 million. Net income for the twelve months ended July 31, 2004 was $20.0 million compared to $52.3 million in the prior year period. Fiscal 2003 net income included a tax benefit of $10.6 million related to the reinstatement of deferred tax assets. Excluding acquisition integration and other one-time costs, fiscal 2004 net income would have been $30.4 million.
"These results reflect our customers' continued acceptance of SSA Global's business strategy, solution strategy and the tremendous efforts of outstanding SSA Global professionals," said Mike Greenough, chairman, president and CEO of SSA Global. "As a team, we will continue to focus on positive results and satisfaction of our growing customer base."
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