Pre-Spin-Off, ERP Maker's Sales Drop

During its last quarter under the aegis of CDC Corp., CDC Software sees sales shrink even as it manages to turn a loss into a profit.


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Posted on Aug 19, 2009

Newly independent CDC Software this week reported a lackluster sales performance in the second quarter ended June 30, its final full quarter as a subsidiary of China-based CDC Corp.

Revenue for the mid-market ERP specialist dropped 24% to $50.6 million, from $66.8 million in the second quarter of 2008. (When it spun off as a separate company, CDC Software left behind the Global Services unit whose revenue it had reported while under the parent corporation’s banner. It did not include the Services division in its second-quarter numbers.)

License sales fell sharply year over year, declining 43% to $7.8 million, although officials touted a 10% sequential improvement in license sales from Q1.

Nevertheless, the former CDC subsidiary managed to turn a profit, netting $5.9 million, turning around a loss of $241,000 in the prior-year period.

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