SSA Global (NASDAQ: SSAG), a leading provider of extended enterprise solutions and services, today announced financial results for the third quarter ended April 30, 2005.
We are extremely pleased to enter the public market with such solid financial results. For the quarter, we generated double-digit growth versus last year, in both revenue and adjusted net income, said Mike Greenough, chairman, president and CEO of SSA Global.
Total revenue for the third quarter rose to $180.4 million, an increase of 10 percent from $164.5 million in the third quarter of last year. Software license revenue was a record $52.5 million, up 27 percent from the third quarter last year. Software license revenue grew 16 percent organically and represented 29 percent of total revenue for the quarter.
During the third quarter, North America contributed 44 percent of total revenue, while Europe, Middle East and Africa (EMEA) contributed 41 percent, and Asia-Pacific/Japan (APJ) and Latin America contributed the remaining 15 percent. For the quarter ended April 30, 2005, 807 contracts were signed, including 40 new customers that represented 10 percent of license value associated with these contracts.
In April, the company released SSA ERPLX for the process manufacturing industry. This coupled with SSA ERPLN released last July, for discrete manufacturers, provides the foundation for SSA Globals go-forward and converged ERP product offering.
For the third quarter, the company reported GAAP net income of $9.2 million compared to $2.0 million for the third quarter of 2004.
On an adjusted basis, earnings grew 60 percent to $18.4 million or $0.26 per diluted share from $11.5 million or $0.16 per diluted share. The third quarter of 2004 includes one-time acquisition integration costs of $6.6 million or $0.06 per diluted share. (Adjusted earnings and earnings per diluted share excludes amortization of acquired intangibles, stock-based compensation expense, restructuring charges and benefits and includes an assumed 34 percent tax rate.) For the quarter, EBITDA was $34.2 million or 19 percent of total revenue.
Cash and cash equivalents at the end of the quarter totaled $129 million and operating cash flow for the quarter totaled $43 million. Days Sales Outstanding (DSO) were 83, down from 97 days at January 31, 2005 and down from 98 days in the third quarter of 2004.
Our license revenue growth is driven by our broad suite of products and our ability to solve our customers business issues. We are a total solution provider, added Greenough.
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