Two earnings reports from enterprise software providers this week showed contrasting results, as mid-market ERP provider CDC Software revealed a 22% year-over-year revenue drop, and its larger counterpart IFS showed a 14% increase in revenue, buoyed by industries less exposed to global economic conditions.
CDC Software, a unit of diversified CDC Corp., brought in total revenue of $53.5 million in the fourth quarter of 2008, 22% less than the $68.4 million it reported in the year-earlier period. License revenue was down 46% to $9.2 million, from $17.1 million a year earlier, while maintenance revenue was nearly flat at $24.9 million. Revenue from consulting services dropped 22% to $18.4 million in the quarter, from $23.7 million.
CDC Corp.’s total revenue was $96.2 million in the period, down 10% compared with $106.9 million last year.
CDC said it is seeking “strategic growth alternatives” for three of its four core businesses: CDC Software, CDC Global Services, and CDC Games. A company spokesperson today said those options could include a full or partial sale of certain assets, mergers, partnerships, or capital market transactions.