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by Chris Chiappinelli, MA Editorial Staff
Posted on Friday, September 07, 2007 4:49:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | The diversified enterprise software provider reports big sales increases in second quarter and reveals another acquisition as it prepares to spin out its software group. |
| Keywords: | CDC Software, IPO, Catalyst, CDC Corp., Ross Systems, vertical acquisitions, software spinoff, record sales |
A robust second quarter served as the backdrop to another strategic acquisition by CDC Corp. this week, as the company looked to expand its supply chain offerings and customer base. In the second quarter, ended June 30, China-based CDC Corp. reported revenue of $103.9 million, a 35% increase over the $77 million recorded in last year's second quarter, and the first time the company has surpassed $100 million in quarterly sales. Software, maintenance, and services yielded $64.4 million, up 50% from $42.8 million in the like period a year earlier. Overall license revenue soared 87%, while organic products saw a 34% year-over-year jump in license revenue. New customers represented 54% of the software revenue in the quarter, according to a statement. The company also spent much more liberally to reap those rewards, with costs related to software and business services up 53% to $43.7 million, and administrative expenses 47% higher year over year. That contributed to a second-quarter net loss of $3.2 million, compared with net income of $7.9 million in the prior-year second quarter. [Click to continue] |
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