As has become its habit, mid-market enterprise applications provider CDC Software today provided a sneak peek of its quarterly performance, saying it expects to grow applications sales nearly 50% year over year.
The maker of CDC Factory and an arsenal of ERP and CRM products said that for the third quarter, which will end on Sept. 30, it expects applications sales to be worth $11.3 million, up 49% compared with the $7.6 million in applications sales it reported in last year’s third quarter.
The company said sales of CDC Factory, its manufacturing operations management product, have been a strong contributor to the uptick, and that the EMEA region stood out among other geographies as a sales driver this quarter.
To reflect its expansion into SaaS ERP and other software-as-a-service offerings to augment its on-premise sales, CDC is using a financial metric called “secured total contract value” to generate its year-over-year comparisons. Since customers pay for SaaS packages on a monthly basis, CDC and other SaaS vendors lose out on the upfront windfall associated with traditional on-premise software license sales. Because of that, CDC has factored into its comparisons the total contract value of SaaS sales, even though the revenue will not arrive until ensuing quarters.