Revenue Slides as Earnings Increase for CDC Software

CEO Peter Yip bumps up guidance for full-year earnings, even as he holds the revenue forecast steady.


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Posted on Nov 23, 2009

The third quarter of 2009 delivered a mixed bag of results to newly independent CDC Software, as sales trended lower and income rose against the prior year’s results.

In a report similar to recent announcements by other ERP software providers, CDC Software said today that revenue in the three months ended Sept. 30 fell 20% to $48.6 million, compared with $60.5 million in the same quarter in 2008. Meanwhile, net income surged to $6.2 million from $4.2 million in the comparable period last year.

Software licenses contributed strongly to the retreating top line, dropping 36% to $7.6 million from last year’s $11.9 million. CDC’s services business fell 30% to $14.9 million, but its maintenance revenue broke the mold, slipping just 4% to $25.4 million.

The company’s 45 new customers accounted for 38% of total software license revenue during the quarter.

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