SHANGHAI & ATLANTA--(BUSINESS WIRE)--CDC Software Corporation (NASDAQ: CDCS), a global enterprise software provider of on-premise and cloud deployments, today announced financial results for the quarter ended June 30, 2011. For the second quarter of 2011, Non-GAAP revenue(a) was $56.5 million and Non-GAAP net income(a) was $2.2 million, or $0.08 per share, compared to Non-GAAP revenue of $54.0 million and Non-GAAP net income of $8.0 million, or $0.28 per share in the second quarter of 2010.
In the second quarter of 2011, Adjusted EBITDA(a) was $5.2 million, compared to $11.4 million in the same period in 2010. In the second quarter of 2011, CDC Software continued to invest in sales and marketing and research and development (R&D) for both its on-premise and cloud segments. In addition, increased litigation expenses impacted earnings in the quarter. GAAP gross profit was $30.2 million and gross margin was 54 percent in the second quarter of 2011, compared to $27.9 million in gross profit and gross margin of 53 percent in the first quarter of 2011. DSO (days sales outstanding) in the second quarter of 2011 was 69 days, compared to 80 days for the second quarter of 2010.
Total Non-GAAP recurring revenue(a), which CDC Software defines as Non-GAAP maintenance(a) plus SaaS revenue, increased to $30.7 million in the second quarter of 2011, from $27.8 million in the second quarter of 2010. Second quarter 2011 services revenue was $15.4 million, compared to $16.1 million in the second quarter of 2010. During the second quarter of 2011, approximately 33 percent of license revenue was derived from North America, 48 percent from EMEA, and 19 percent from Asia/Pacific.
Application sales, which is comprised of license revenue plus Secured Total Contract Value (STCV) for Software-as-a-Service (SaaS) sales secured, was $16.2 million during the second quarter of 2011, compared to $13.5 million in the second quarter of 2010. Application sales for the second quarter of 2011 included license revenue of $8.7 million and record STCV, or bookings, for Software-as-a-Service (SaaS) sales of $7.5 million, compared to license revenue of $8.8 million and STCV of $4.7 million in the second quarter of 2010. Second quarter 2011 STCV marks record bookings since the company started its cloud business in the fourth quarter of 2009. STCV is the contract dollar amount for the duration of the contracts for all SaaS contracts secured, including new logo contracts, upsell, rental, as well as all renewals received by the end of the quarter.
Second quarter 2011 Total Contract Backlog (TCB) increased to $148.0 million, compared to $144.7 million, in the first quarter of 2011. TCB is defined as the sum of the remaining revenue value of SaaS and term license or rental contracts through the end of their respective term, the value of contracted renewals for current SaaS and rental contracts based on 12 months of value, plus maintenance revenues from existing contracts over the previous 12 months.
For the second quarter of 2011, CDC Software’s Cloud business segment reported Non-GAAP revenue of $6.7 million, an increase of approximately 18 percent from $5.7 million in the second quarter of 2010. The Cloud segment reported negative Adjusted EBITDA of $348,000 in the second quarter of 2011, compared to Adjusted EBITDA of $379,000 in the second quarter of 2010, due to increased investment activities.
Overall, earnings for CDC Software in the second quarter of 2011 have continued to be impacted by increased investments in sales and marketing, R&D as well as increased litigation expenses. The company expects that earnings will continue to be impacted going forward by expenses related to ongoing litigation as well as costs associated with the investigation being undertaken by the special committee of the board of directors.
“We are pleased with our Q2 2011 results, including an improvement in revenue on a sequential quarterly basis as well as the growth in our pipeline,” said Bruce Cameron, president of CDC Software. “While our cloud business has been seeing good progress from a revenue growth perspective, we are evaluating the synergies of each of our completed cloud acquisitions with respect to the company’s cross-sell strategy, as well as how each of these businesses impacts the company’s overall profitability both in the short and longer term. Indeed, our profitability in Q2 2011 was impacted primarily by continued increases in spending for sales and marketing, product engineering and litigation, however, we believe that we have also continued to position ourselves for higher organic growth in our business. With higher spending in sales and marketing, we have already seen increases in our sales pipeline.”
Cameron added, “Notable sales wins included a seven digit renewal and add-on SaaS deal of CDC TradeBeam for a leading clothing retailer, and key new logo customers for CDC Factory that included a leading cosmetic and beauty company, as well as a chemical manufacturer, both new markets for this business.”
Company Highlights:
During the second quarter of 2011, CDC Software introduced several new products and version upgrades for its core on-premise ERP, supply chain management and complaint management applications. New products included Pivotal Customer Service and Support, a new service and support module developed on the innovative Pivotal 6 platform, and a major technology upgrade of its Enterprise Performance Management (EPM) solution. Also, CDC gomembers’ on-premise not-for-profit enterprise solution introduced its Social Community and Mobile Membership application, a new social media application that can be accessed via a user’s mobile devices. CDC Respond, a complaint and feedback management suite of solutions launched a new module, Proactive Case Management (PCM), which helps organizations comply with recent legal and regulatory changes in the U.K.
New cloud products delivered in the second quarter of 2011 included TradeBeam GTM 2.5, a new version release of its global trade management solution featuring improved reporting and classification for screening purposes, and a new version upgrade of CDC eCommerce was offered that included extensive search capabilities for online shopping which further expanded the breadth of its multichannel offerings.
Major on-premise sales wins in the second quarter of 2011 included a seven digit CDC Respond deal to a large installed-base customer in the U.K. Another major deal for Q2 2011 included a CDC Factory sale to a new customer, a leading global cosmetics and beauty company. During the second quarter of 2011, three of the top five SaaS deals were from the company’s TradeBeam product line, and included a seven figure deal with a major clothing retailer.
Another key part of CDC Software’s growth strategy for both its on-premise and Cloud businesses is its indirect channels. For example, the company’s Strategic Alliance Program, which started in the fourth quarter of 2009, reported record OEM sales, comprised of on-premise revenue plus the STCV of SaaS contracts, in the second quarter 2011 of $901,000, an increase of more than 460 percent compared to the second quarter of 2010. The company signed a new reciprocal OEM partnership with Global Range, a provider of service-oriented architecture (SOA) solutions that includes CDC Software’s Event Management Framework, a real-time alerting and proactive event detection and resolution workflow solution, and Global Range’s integration adaptors.
Share Buyback:
Between August 2009 and June 30, 2011, CDC Software, management, Peter Yip and family members and certain affiliates of the company, have purchased an aggregate of approximately 1.6 million shares at an average price of $7.75 per share. The Company has continued to repurchase its shares in the open market through a 10b5-1 trading plan.
Management News:
As previously announced, the company’s chief executive officer, Peter Yip is on administrative leave and John Clough, chairman of CDC Software, is serving as interim CEO for the company.
Concluding Remarks:
“We are pleased with our solid top line results and the progression of our cloud business in the second quarter of 2011,” said John Clough, interim CEO of CDC Software. ”While our profitability has been impacted by a variety of factors mentioned earlier, we plan to continue evaluating our investment programs relative to our expansion plans, including further investment in the cloud, as well as growth in regions like Brazil, Russia, India, and China. While there are currently negative drivers in the global economy which are beyond our control, we plan to focus on cash preservation and growth as we execute on our corporate strategy.”
Revised 2010 Information:
Results provided herein for 2010 have been revised from those previously reported in the company’s press releases due to certain year-end adjustments required to be made in connection with the audit of its financial statements for the year ended December 31, 2010.
The revisions recorded by the company included a $123.9 million goodwill impairment charge, $113.1 million of which related to its on-premise business and $10.8 million of which related to its Cloud business. The company also recorded a $1.3 million impairment charge for identifiable intangible assets in its on-premise segment and $7.5 million of tax related purchase accounting adjustments relating to the company’s TradeBeam acquisition. Furthermore, in accordance with U.S. GAAP, management has accrued an expected loss contingency of $10.0 million related to the ongoing litigation between the company’s subsidiary, Ross Systems, Inc, and Sunshine Mills, Inc. as of December 31, 2010, which is subject to further revision. Additional adjustments relate to changes in estimates which impacted the reserves for litigation settlements, purchase consideration payables, and valuation of deferred tax assets and deferred tax liabilities.
Conference Call
The Company's senior management will host a conference call for financial analysts and investors, Thursday, August 25, 2011 at 8:30 AM EDT.
USA and Canada Toll Free Number: (866) 903-3296
Int’l/Local
Dial-In #: (706) 643-6263
Pass code: # 91612723 Call Leader: Monish Bahl
This call is being webcast by Thomson Reuters and can be accessed at the following link: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=215971&eventID=3018326
Individual investors also can listen to the call through at the following link: www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via Thomsonone's password-protected event management site, StreetEvents (www.streetevents.com).
Instant Replay
For those unable to call in, a digital instant replay will be available after the call until Sept. 01, 2011. U.S. based Toll Free Number: +1800-642-1687, U.S.-based Toll Number: +1 706-645-9291. Conference ID number: ## 91612723
Footnotes:
a) Adjusted Financial Measures
This press release includes Non-GAAP revenue, Non-GAAP net income, Adjusted EBITDA, Non-GAAP recurring revenue and Non-GAAP maintenance, which are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) (collectively, the "Non-GAAP Financial Measures"). Non-GAAP Financial Measures are not alternatives for measures such as net income, earnings per share, and others, prepared under GAAP. These Non-GAAP Financial Measures may also be different from non-GAAP measures used by other companies. Non-GAAP Financial Measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.
Investors should be aware that these Non-GAAP Financial Measures have inherent limitations, including their variance from certain of the financial measurement principals underlying GAAP, should not be considered as a replacement for GAAP performance measures, and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These supplemental Non-GAAP Financial Measures should not be construed as an inference that the Company's future results will be unaffected by similar adjustments determined in accordance with GAAP. Reconciliations of Non-GAAP Financial Measures to GAAP are provided herein immediately following the financial statements included in this press release.
All dollar amounts are in U.S. dollars
Special Note Regarding CDC Software Financial Results
The financial results provided herein apply only to CDC Software Corporation, a subsidiary of CDC Corporation. These financial results do not apply to, and are not indicative of, the consolidated financial results of CDC Corporation, or the financial results of CDC Games Corporation, China.com, Inc. or any of their respective subsidiaries. Investors are cautioned not to place reliance on the financial results set forth herein for purposes of any investment decision with respect to the shares of CDC Corporation, and should read the foregoing in conjunction with the reports and other materials filed with the United States Securities and Exchange Commission by CDC Corporation and CDC Software Corporation, from time to time.
About CDC Software
CDC Software (NASDAQ: CDCS), The Customer-Driven Company™, is a global enterprise software provider of on-premise and cloud deployments. Leveraging a service-oriented architecture (SOA), CDC Software offers multiple delivery options for their solutions including on-premise, hosted, cloud-based SaaS or blended-hybrid deployment offerings. CDC Software’s solutions include enterprise requirements planning (ERP), manufacturing operations management, enterprise manufacturing intelligence, supply chain management (demand management, order management and warehouse and transportation management), global trade management, eCommerce, human capital management, government and not-for-profit, customer relationship management (CRM), complaint management, business intelligence/analytics and aged care solutions.
CDC Software’s acquisitions are part of its “integrate, innovate and grow” strategy. Fueling the success of this strategy is the company’s global scalable business and technology infrastructure featuring multiple complementary applications and services, domain expertise in vertical markets, cost effective product engineering centers in India and China, a highly collaborative and fast product development process utilizing Agile methodologies, and a worldwide network of direct sales and channel operations. This strategy has helped CDC Software deliver innovative and industry-specific solutions to more than 10,000 customers worldwide within the manufacturing, distribution, transportation, retail, government, real estate, financial services, health care, and not-for-profit industries. For more information, please visit www.cdcsoftware.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our expectations regarding the factors that will impact earnings in subsequent periods, our expectations with respect to our progress in revenue growth, including the continuation thereof, our expectations regarding our evaluation of any cross-selling synergies with our Cloud companies, our beliefs about our position for higher organic growth, our beliefs and expectations regarding our sales pipeline, our expectations and plans relating to any future repurchases of our shares, our plans to continue evaluating our investment programs relative to our expansion plans, our plans relating to our focus on cash preservation and growth as we execute our corporate strategy, our beliefs about any continued investment in sales and marketing and research and development for our Cloud and on premise businesses and the impact thereof on our earnings now and in future periods, including the continuation of such impact and the potential benefits of these investments, our beliefs regarding returns on our marketing investments, our beliefs regarding recurring revenue as a percentage of total revenue and the continued increase of that percentage, our expectations regarding SaaS revenue, including momentum and expectations for revenue performance, our beliefs regarding strategic partnerships, our beliefs regarding our corporate strategies and the effects thereof, our beliefs regarding any trends we may see, and other statements that are not historical fact, the achievement of which involve risks, uncertainties and assumptions. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including the following: (a) the risk of significant liability and losses from any litigation matters or other disputes in which we may be involved, including the litigation between Sunshine Mills, Inc. and Ross Systems; (b) the risk of ongoing, increased expenses and liability related to the Sunshine Mills litigation, other litigations matters we may now or in the future become a party to, and the investigation being undertaken by the special committee of the board of directors, as well as potential negative market perception related to the foregoing; (c) risks related to the potential impact of any litigation matters, including the Sunshine Mills matter and others, on our business, operations and financial condition; (d) risks related to the variability of, and basis for, any assessments and estimates made by management herein, including any impairment or other charges or accruals that we may make from time to time, which are subject to change; (e) the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; (f) risks related to our Cloud business; (g) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of current, new and potential customers, suppliers and strategic partners, including our expansion as a hybrid enterprise software provider of on-premise and cloud deployments; (h) the effects of restructurings and rationalization of operations in our companies; (i) the ability to address technological changes and developments including the development and enhancement of products; (j) the ability to develop and market successful products and services, including our expansion as a hybrid enterprise software provider; (k) the entry of new competitors and their technological advances; (l) the need to develop, integrate and deploy enterprise software applications to meet customer's requirements; (m) the possibility of development or deployment difficulties or delays; (n) the dependence on customer satisfaction with the company's software products and services; (o) continued commitment to the deployment of our enterprise software products, including on-premise and cloud deployments; (p) risks involved in developing software solutions and integrating them with other software and services; (q) the continued ability of the company's products and services to address client-specific requirements; (r) demand for and market acceptance of new and existing software and services, and the positioning of the company's solutions; and (s) the ability of our customers’ staff to operate the enterprise software and extract and utilize information from the company's products and services. If any such risks or uncertainties materialize or if any of the assumptions or estimates proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Further information on risks or other factors that could cause results to differ is detailed in our filings or submissions with the United States Securities and Exchange Commission, including our Annual Report on form 20-F for the year ended December 31, 2009, filed with the SEC on June 1, 2010, and those of our ultimate parent company, CDC Corporation. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise. Historical results are not indicative of future performance.
| CDC Software | ||||||||
| Unaudited Consolidated Balance Sheets | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 1 | ||||||||
| December 31, | June 30, | |||||||
| 2010 | 2011 | |||||||
|
ASSETS |
||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 44,679 | $ | 31,637 | ||||
| Restricted cash | 93 | 12 | ||||||
|
Accounts receivable (net of allowance of $4,458 at December 31, 2010 and $3,757 at June 30, 2011) |
40,928 | 43,959 | ||||||
| Prepayments and other current assets | 9,203 | 14,195 | ||||||
| Deferred tax assets | 12,126 | 12,133 | ||||||
| Total current assets | 107,029 | 101,936 | ||||||
| Property and equipment, net | 4,823 | 4,540 | ||||||
| Goodwill | 43,729 | 44,545 | ||||||
| Intangible assets | 58,951 | 50,345 | ||||||
| Deferred tax assets | 40,845 | 41,237 | ||||||
| Receivable from Parent | 30,014 | 37,485 | ||||||
| Note receivable due from related parties | 1,885 | 2,043 | ||||||
| Investment in cost method investees | 675 | 713 | ||||||
| Other assets | 3,222 | 2,667 | ||||||
| Total assets | $ | 291,173 | $ | 285,511 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 13,395 | 14,870 | ||||||
| Purchase consideration payables | 34 | 673 | ||||||
| Income tax payable | 4,677 | 4,050 | ||||||
| Short-term bank loans | 15,055 | 90 | ||||||
| Accrued liabilities | 34,612 | 39,706 | ||||||
| Restructuring accruals, current portion | 1,547 | 1,030 | ||||||
| Deferred revenue | 52,614 | 57,662 | ||||||
| Deferred tax liabilities | 349 | 447 | ||||||
| Total current liabilities | 122,283 | 118,528 | ||||||
| Long-term debt | 242 | 99 | ||||||
| Deferred tax liabilities | 17,708 | 17,788 | ||||||
| Purchase consideration payables, net of current portion | 786 | 110 | ||||||
| Other liabilities | 9,204 | 8,496 | ||||||
| Total liabilities | 150,223 | 145,021 | ||||||
| Contingencies and commitments | ||||||||
| Shareholders' equity: | ||||||||
|
Class A ordinary shares, $0.001 par value; 50,000,000 shares authorized; 5,210,638 shares issued as of December 31, 2010 and June 30, 2011; 3,934,186 and 3,621,762 shares outstanding as of December 31, 2010 and June 30, 2011, respectively |
5 | 5 | ||||||
|
Class B ordinary shares, $0.001 par value; 27,000,000 shares authorized; 24,200,000 shares issued as of December 31, 2010 and June 30, 2011; 23,789,362 shares outstanding as of December 31, 2010 and June 30, 2011, respectively |
24 | 24 | ||||||
| Additional paid-in capital | 252,278 | 254,469 | ||||||
|
Common stock held in treasury; 1,276,452 shares as of December 31, 2010 and 1,588,876 as of June 30, 2011 |
(10,423 | ) | (12,176 | ) | ||||
| Retained earnings | (101,267 | ) | (107,665 | ) | ||||
| Accumulated other comprehensive income (loss) | (75 | ) | 5,222 | |||||
| Total shareholders' equity | 140,542 | 139,879 | ||||||
| Noncontrolling interest | 408 | 611 | ||||||
| Total equity | 140,950 | 140,490 | ||||||
| Total liabilities and shareholders' equity | $ | 291,173 | $ | 285,511 | ||||
| CDC Software | ||||||||
| Unaudited Consolidated Statements of Operations | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 2 | ||||||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| 2011 | 2011 | |||||||
| REVENUE: | ||||||||
| Licenses (including royalties from related parties of $531 and $484, respectively) | $ | 6,399 | $ | 8,669 | ||||
| Maintenance (including royalties from related parties of $180 and $191, respectively) | 25,521 | 25,929 | ||||||
| Professional services (including royalties from related parties of $179 and $211, respectively) | 14,772 | 15,430 | ||||||
| Hardware | 1,161 | 1,646 | ||||||
| SaaS | 4,523 | 4,711 | ||||||
| Total revenue | 52,376 | 56,385 | ||||||
| COST OF REVENUE: | ||||||||
| Licenses | 3,501 | 3,560 | ||||||
| Maintenance | 5,121 | 5,533 | ||||||
| Professional services | 13,372 | 14,076 | ||||||
| Hardware | 878 | 1,422 | ||||||
| SaaS | 1,573 | 1,561 | ||||||
| Total cost of revenue | 24,445 | 26,152 | ||||||
| Gross profit | 27,931 | 30,233 | ||||||
| Gross margin % | 53 | % | 54 | % | ||||
| OPERATING EXPENSES: | ||||||||
| Sales and marketing expenses | 12,783 | 13,125 | ||||||
| Research and development expenses | 7,519 | 7,959 | ||||||
| General and administrative expenses | 9,324 | 10,524 | ||||||
| Operating expenses allocated to Parent | (2,184 | ) | (1,857 | ) | ||||
| Exchange loss | 519 | 1,912 | ||||||
| Amortization expenses | 1,606 | 1,635 | ||||||
| Restructuring and other charges | 1,074 | 148 | ||||||
| Total operating expenses | 30,641 | 33,446 | ||||||
| Operating loss | (2,710 | ) | (3,213 | ) | ||||
| Operating margin % | -5 | % | -6 | % | ||||
| Other income, net (including interest income from Parent of $251 and $250, respectively) | 104 | 343 | ||||||
| Loss before income taxes | (2,606 | ) | (2,870 | ) | ||||
| Income tax benefit (expense) | 385 | (904 | ) | |||||
| Net loss | (2,221 | ) | (3,774 | ) | ||||
| Net (income) loss attributable to noncontrolling interest | 14 | (215 | ) | |||||
| Net loss attributable to controlling interest | $ | (2,207 | ) | $ | (3,989 | ) | ||
| Net loss attributable to controlling interest per class A ordinary share - basic and diluted | $ | (0.08 | ) | $ | (0.15 | ) | ||
| Net loss attributable to controlling interest per class B ordinary share - basic and diluted | $ | (0.08 | ) | $ | (0.15 | ) | ||
| Weighted average shares of class A outstanding - basic and diluted | 3,808,395 | 3,695,071 | ||||||
| Weighted average shares of class B outstanding - basic and diluted | 23,789,362 | 23,789,362 | ||||||
| Total weighted average shares - basic and diluted | 27,597,757 | 27,484,433 | ||||||
| CDC Software | ||||||||
| Unaudited Consolidated Statements of Operations | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 3 | ||||||||
| Three months ended | ||||||||
| June 30, | ||||||||
| 2010 | 2011 | |||||||
| REVENUE: | ||||||||
| Licenses (including royalties from related parties of $501 and $484, respectively) | $ | 8,817 | $ | 8,669 | ||||
| Maintenance (including royalties from related parties of $70 and $191, respectively) | 23,862 | 25,929 | ||||||
| Professional services (including royalties from related parties of $8 and $211, respectively) | 16,078 | 15,430 | ||||||
| Hardware | 1,142 | 1,646 | ||||||
| SaaS | 2,677 | 4,711 | ||||||
| Total revenue | 52,576 | 56,385 | ||||||
| COST OF REVENUE: | ||||||||
| Licenses | 5,048 | 3,560 | ||||||
| Maintenance | 4,150 | 5,533 | ||||||
| Professional services (including cost from related parties of $484 and nil, respectively) | 12,063 | 14,076 | ||||||
| Hardware | 853 | 1,422 | ||||||
| SaaS | 1,603 | 1,561 | ||||||
| Total cost of revenue | 23,717 | 26,152 | ||||||
| Gross profit | 28,859 | 30,233 | ||||||
| Gross margin % | 55 | % | 54 | % | ||||
| OPERATING EXPENSES: | ||||||||
| Sales and marketing expenses | 10,083 | 13,125 | ||||||
| Research and development expenses | 7,164 | 7,959 | ||||||
| General and administrative expenses | 8,611 | 10,524 | ||||||
| Operating expenses allocated to Parent | (1,947 | ) | (1,857 | ) | ||||
| Exchange (gain) loss | (1,156 | ) | 1,912 | |||||
| Amortization expenses | 1,293 | 1,635 | ||||||
| Restructuring and other charges | 229 | 148 | ||||||
| Total operating expenses | 24,277 | 33,446 | ||||||
| Operating income (loss) | 4,582 | (3,213 | ) | |||||
| Operating margin % | 9 | % | -6 | % | ||||
| Other income (loss), net (including interest income from Parent of $274 and $250, respectively) | (14 | ) | 343 | |||||
| Income (loss) before income taxes | 4,568 | (2,870 | ) | |||||
| Income tax expense | (1,452 | ) | (904 | ) | ||||
| Net income (loss) | 3,116 | (3,774 | ) | |||||
| Net income attributable to noncontrolling interest | (141 | ) | (215 | ) | ||||
| Net income (loss) attributable to controlling interest | $ | 2,975 | $ | (3,989 | ) | |||
| Unaudited pro forma information: | ||||||||
| Net income (loss) attributable to controlling interest per class A ordinary share - basic and diluted | $ | 0.10 | $ | (0.15 | ) | |||
| Net income (loss) attributable to controlling interest per class B ordinary share - basic and diluted | $ | 0.10 | $ | (0.15 | ) | |||
| Weighted average shares of class A outstanding - basic and diluted | 4,509,011 | 3,695,071 | ||||||
| Weighted average shares of class B outstanding - basic and diluted | 23,923,457 | 23,789,362 | ||||||
| Total weighted average shares - basic and diluted | 28,432,468 | 27,484,433 | ||||||
| CDC Software | ||||||||
| Unaudited Consolidated Statements of Operations | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 4 | ||||||||
| Six months ended | ||||||||
| June 30, | ||||||||
| 2010 | 2011 | |||||||
| REVENUE: | ||||||||
| Licenses (including royalties from related parties of $996 and $1,016, respectively) | $ | 16,740 | $ | 15,068 | ||||
| Maintenance (including royalties from related parties of $165 and $371, respectively) | 48,731 | 51,450 | ||||||
| Professional services (including royalties from related parties of $11 and $391, respectively) | 31,350 | 30,202 | ||||||
| Hardware | 2,049 | 2,807 | ||||||
| SaaS | 4,207 | 9,234 | ||||||
| Total revenue | 103,077 | 108,761 | ||||||
| COST OF REVENUE: | ||||||||
| Licenses | 9,803 | 7,060 | ||||||
| Maintenance | 8,355 | 10,654 | ||||||
| Professional services (including cost from related parties of $484 and nil, respectively) | 25,557 | 27,449 | ||||||
| Hardware | 1,627 | 2,300 | ||||||
| SaaS | 2,269 | 3,134 | ||||||
| Total cost of revenue | 47,611 | 50,597 | ||||||
| Gross profit | 55,466 | 58,164 | ||||||
| Gross margin % | 54 | % | 53 | % | ||||
| OPERATING EXPENSES: | ||||||||
| Sales and marketing expenses | 20,070 | 25,908 | ||||||
| Research and development expenses | 13,946 | 15,478 | ||||||
| General and administrative expenses | 16,937 | 19,849 | ||||||
| Operating expenses allocated to Parent | (4,289 | ) | (4,041 | ) | ||||
| Exchange (gain) loss | (562 | ) | 2,431 | |||||
| Amortization expenses | 2,573 | 3,241 | ||||||
| Restructuring and other charges | 802 | 1,223 | ||||||
| Total operating expenses | 49,477 | 64,089 | ||||||
| Operating income (loss) | 5,989 | (5,925 | ) | |||||
| Operating margin % | 6 | % | -5 | % | ||||
| Other income, net (including interest income from Parent of $632 and $501 respectively) | 717 | 447 | ||||||
| Income (loss) before income taxes | 6,706 | (5,478 | ) | |||||
| Income tax expense | (2,032 | ) | (518 | ) | ||||
| Net income (loss) | 4,674 | (5,996 | ) | |||||
| Net income attributable to noncontrolling interest | (229 | ) | (202 | ) | ||||
| Net income (loss) attributable to controlling interest | $ | 4,445 | $ | (6,198 | ) | |||
| Unaudited pro forma information: | ||||||||
| Net income (loss) attributable to controlling interest per class A ordinary share - basic and diluted | $ | 0.16 | $ | (0.22 | ) | |||
| Net income (loss) attributable to controlling interest per class B ordinary share - basic and diluted | $ | 0.16 | $ | (0.22 | ) | |||
| Weighted average shares of class A outstanding - basic and diluted | 4,509,011 | 3,759,742 | ||||||
| Weighted average shares of class B outstanding - basic and diluted | 23,923,457 | 23,789,362 | ||||||
| Total weighted average shares - basic and diluted | 28,432,468 | 27,549,104 | ||||||
| CDC Software | ||||||||
| Unaudited Consolidated Statements of Cash Flow | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 5 | ||||||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| 2011 | 2011 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (2,221 | ) | $ | (3,774 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation expense | 766 | 746 | ||||||
| Amortization expense | 4,688 | 4,493 | ||||||
| Provision for bad debts | 261 | 290 | ||||||
| Stock compensation expenses | 978 | 1,015 | ||||||
| Deferred income tax provision | (38 | ) | (302 | ) | ||||
| Exchange (gain) loss | 520 | (520 | ) | |||||
| Loss on disposal of property and equipment | - | 8 | ||||||
| Loss (gain) on disposal of available-for-sale securities | (22 | ) | 44 | |||||
| Amortization of debt issuance costs | 87 | 82 | ||||||
| Accrued interest income from Parent | (251 | ) | (438 | ) | ||||
| Accrued interest income | (30 | ) | (30 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,281 | ) | (1,234 | ) | ||||
| Deposits, prepayments and other receivables | (3,726 | ) | 195 | |||||
| Other assets | 340 | 846 | ||||||
| Accounts payable | 642 | 550 | ||||||
| Income tax payable | (1,182 | ) | 555 | |||||
| Accrued liabilities | 2,975 | 1,449 | ||||||
| Deferred revenue | 7,795 | (3,959 | ) | |||||
| Other liabilities | (413 | ) | (351 | ) | ||||
| Net cash provided by (used in) operating activities | 8,888 | (335 | ) | |||||
| INVESTING ACTIVITIES: | ||||||||
| Payment for prior year acquisitions | (500 | ) | (45 | ) | ||||
| Purchases of property and equipment | (325 | ) | (457 | ) | ||||
| Decrease (increase) in restricted cash | (1 | ) | 82 | |||||
| Net cash used in investing activities | (826 | ) | (420 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Advances to Parent, net | (4,023 | ) | (2,759 | ) | ||||
| Payments on short-term borrowings | (15,000 | ) | - | |||||
| Purchases of treasury stock | (844 | ) | (909 | ) | ||||
| Payments for capital lease obligations | (71 | ) | (54 | ) | ||||
| Net cash used in financing activities | (19,938 | ) | (3,722 | ) | ||||
| Effect of exchange differences on cash | 2,008 | 1,303 | ||||||
| Net decrease in cash and cash equivalents | (9,868 | ) | (3,174 | ) | ||||
| Cash at beginning of period | 44,679 | 34,811 | ||||||
| Cash at end of period | $ | 34,811 | $ | 31,637 | ||||
| CDC Software | ||||||||||||||||
| Unaudited Consolidated Statements of Cash Flow | ||||||||||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||||||||||
| Table 6 | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||||
| OPERATING ACTIVITIES: | ||||||||||||||||
| Net income (loss) | $ | 3,116 | $ | (3,774 | ) | $ | 4,674 | $ | (5,996 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
| Depreciation expense | 952 | 746 | 1,651 | 1,512 | ||||||||||||
| Amortization expense | 4,753 | 4,493 | 9,858 | 9,181 | ||||||||||||
| Provision for bad debt | 301 | 290 | 192 | 551 | ||||||||||||
| Stock compensation expenses | 552 | 1,015 | 996 | 1,993 | ||||||||||||
| Deferred income tax provision | - | (302 | ) | - | (340 | ) | ||||||||||
| Exchange (gain) loss | (1,155 | ) | (520 | ) | (532 | ) | - | |||||||||
| Loss on disposal of property and equipment | - | 8 | - | 8 | ||||||||||||
| Loss (gain) on disposal of available-for-sale securities | - | 44 | (319 | ) | 22 | |||||||||||
| Amortization of debt issuance costs | - | 82 | - | 169 | ||||||||||||
| Accrued interest income from Parent | - | (438 | ) | - | (689 | ) | ||||||||||
| Accrued interest income | (42 | ) | (30 | ) | (42 | ) | (60 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (1,042 | ) | (1,234 | ) | (1,626 | ) | (3,515 | ) | ||||||||
| Deposits, prepayments and other receivables | 623 | 195 | (1,988 | ) | (3,530 | ) | ||||||||||
| Other assets | (724 | ) | 846 | (917 | ) | 1,186 | ||||||||||
| Accounts payable | (3,339 | ) | 550 | (3,446 | ) | 1,192 | ||||||||||
| Income tax payable | 1,077 | 555 | 1,280 | (627 | ) | |||||||||||
| Accrued liabilities | (2,435 | ) | 1,449 | (3,740 | ) | 4,424 | ||||||||||
| Deferred revenue | (2,062 | ) | (3,959 | ) | (397 | ) | 3,836 | |||||||||
| Other liabilities | (625 | ) | (351 | ) | (360 | ) | (764 | ) | ||||||||
| Net cash provided by (used in) operating activities | (327 | ) | (335 | ) | 4,649 | 8,553 | ||||||||||
| INVESTING ACTIVITIES: | ||||||||||||||||
| Acquisitions, net of cash acquired | (21,075 | ) | - | (23,321 | ) | - | ||||||||||
| Payment for prior year acquisitions | (2,100 | ) | (45 | ) | (2,100 | ) | (545 | ) | ||||||||
| Purchases of property and equipment | 85 | (457 | ) | (221 | ) | (782 | ) | |||||||||
| Dispose (Purchase) of marketable securities | (390 | ) | - | 731 | - | |||||||||||
| Investment in cost method investees | (1,920 | ) | - | (1,920 | ) | - | ||||||||||
| Decrease in restricted cash | 18 | 82 | 18 | 81 | ||||||||||||
| Net cash used in investing activities | (25,382 | ) | (420 | ) | (26,813 | ) | (1,246 | ) | ||||||||
| FINANCING ACTIVITIES: | ||||||||||||||||
| Proceeds from issuance of class A ordinary shares | - | - | - | - | ||||||||||||
| Borrowings from (advances to) Parent, net | (17 | ) | (2,759 | ) | 1,722 | (6,782 | ) | |||||||||
| Short-term borrowings (payments), net | 13,535 | - | 14,272 | (15,000 | ) | |||||||||||
| Purchases of treasury stock | (1,506 | ) | (909 | ) | (2,849 | ) | (1,753 | ) | ||||||||
| Payments for capital lease obligations | (270 | ) | (54 | ) | (388 | ) | (125 | ) | ||||||||
| Net cash provided by (used in) financing activities | 11,742 | (3,722 | ) | 12,757 | (23,660 | ) | ||||||||||
| Effect of exchange differences on cash | (1,044 | ) | 1,303 | (1,451 | ) | 3,311 | ||||||||||
| Net decrease in cash and cash equivalents | (15,011 | ) | (3,174 | ) | (10,858 | ) | (13,042 | ) | ||||||||
| Cash at beginning of period | 44,502 | 34,811 | 40,349 | 44,679 | ||||||||||||
| Cash at end of period | $ | 29,491 | $ | 31,637 | $ | 29,491 | $ | 31,637 | ||||||||
| CDC Software | ||||||||
| Unaudited Reconciliation From GAAP Results to Adjusted EBITDA | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 7 | ||||||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| Consolidated | 2011 | 2011 | ||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||
| Operating loss | $ | (2,710 | ) | $ | (3,213 | ) | ||
| Add back restructuring and other charges | 1,074 | 148 | ||||||
| Add back depreciation expense | 766 | 746 | ||||||
| Add back amortization expense | 1,606 | 1,635 | ||||||
| Add back amortization expense included in cost of revenue | 3,082 | 2,858 | ||||||
| Add back stock compensation expense | 978 | 1,015 | ||||||
| Add back exchange gain | 519 | 1,912 | ||||||
| Add back deferred revenue grind (1) | 263 | 82 | ||||||
| Adjusted EBITDA | $ | 5,578 | $ | 5,183 | ||||
| Adjusted EBITDA margin % | 11 | % | 9 | % | ||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| On Premise | 2011 | 2011 | ||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||
| Operating income | $ | 3,835 | $ | 1,703 | ||||
| Add back restructuring and other charges | 1,036 | 1,091 | ||||||
| Add back depreciation expense | 449 | 415 | ||||||
| Add back amortization expense | 1,254 | 1,477 | ||||||
| Add back amortization expense included in cost of revenue | 2,823 | 2,602 | ||||||
| Add back exchange gain | 519 | 1,912 | ||||||
| Add back deferred revenue grind (1) | 39 | 8 | ||||||
| Adjusted EBITDA | $ | 9,955 | $ | 9,208 | ||||
| Adjusted EBITDA margin % | 22 | % | 18 | % | ||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| Cloud | 2011 | 2011 | ||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||
| Operating loss | $ | (1,438 | ) | $ | (224 | ) | ||
| Add back restructuring and other charges | 38 | (943 | ) | |||||
| Add back depreciation expense | 317 | 331 | ||||||
| Add back amortization expense | 353 | 158 | ||||||
| Add back amortization expense included in cost of revenue | 258 | 256 | ||||||
| Add back deferred revenue grind (1) | 224 | 74 | ||||||
| Adjusted EBITDA | $ | (248 | ) | $ | (348 | ) | ||
| Adjusted EBITDA margin % | -4 | % | -5 | % | ||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| Corporate | 2011 | 2011 | ||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||
| Operating loss | $ | (5,107 | ) | $ | (4,692 | ) | ||
| Add back stock compensation expense | 978 | 1,015 | ||||||
| Adjusted EBITDA | $ | (4,129 | ) | $ | (3,677 | ) | ||
| Adjusted EBITDA margin % | 0 | % | 0 | % | ||||
| (1) Deferred revenue grind represents the fair value adjustment required to reduce the historical deferred revenue liabilities from acquisitions to the fair value of the Company’s legal performance obligations plus a normal profit margin based on fulfillment effort. | ||||||||
| CDC Software | ||||||||||||||||
| Unaudited Reconciliation From GAAP Results to Adjusted EBITDA | ||||||||||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||||||||||
| Table 8 | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Consolidated | 2010 | 2011 | 2010 | 2011 | ||||||||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||||||||||
| Operating income (loss) | $ | 4,582 | $ | (3,213 | ) | $ | 5,989 | $ | (5,925 | ) | ||||||
| Add back restructuring and other charges | 229 | 148 | 802 | 1,223 | ||||||||||||
| Add back depreciation expense | 952 | 746 | 1,651 | 1,512 | ||||||||||||
| Add back amortization expense | 1,293 | 1,635 | 2,573 | 3,241 | ||||||||||||
| Add back amortization expense included in cost of revenue | 3,457 | 2,858 | 7,282 | 5,940 | ||||||||||||
| Add back stock compensation expenses | 551 | 1,015 | 996 | 1,993 | ||||||||||||
| Add back exchange gain | (1,156 | ) | 1,912 | (562 | ) | 2,431 | ||||||||||
| Add back deferred revenue grind (1) | 1,444 | 82 | 2,647 | 345 | ||||||||||||
| Adjusted EBITDA | $ | 11,352 | $ | 5,183 | $ | 21,378 | $ | 10,760 | ||||||||
| Adjusted EBITDA margin % | 21 | % | 9 | % | 20 | % | 10 | % | ||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| On Premise | 2010 | 2011 | 2010 | 2011 | ||||||||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||||||||||
| Operating income | $ | 9,244 | $ | 1,703 | $ | 13,914 | $ | 5,497 | ||||||||
| Add back restructuring and other charges | 229 | 1,091 | 811 | 2,127 | ||||||||||||
| Add back depreciation expense | 585 | 415 | 1,218 | 865 | ||||||||||||
| Add back amortization expense | 1,174 | 1,477 | 2,344 | 2,730 | ||||||||||||
| Add back amortization expense included in cost of revenue | 3,203 | 2,602 | 6,837 | 5,425 | ||||||||||||
| Add back exchange gain | (1,157 | ) | 1,912 | (561 | ) | 2,432 | ||||||||||
| Add back deferred revenue grind (1) | 284 | 8 | 633 | 47 | ||||||||||||
| Adjusted EBITDA | $ | 13,562 | $ | 9,208 | $ | 25,196 | $ | 19,123 | ||||||||
| Adjusted EBITDA margin % | 28 | % | 18 | % | 26 | % | 20 | % | ||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Cloud | 2010 | 2011 | 2010 | 2011 | ||||||||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||||||||||
| Operating loss | $ | (1,522 | ) | $ | (224 | ) | $ | (2,003 | ) | $ | (1,623 | ) | ||||
| Add back restructuring and other charges | - | (943 | ) | (10 | ) | (905 | ) | |||||||||
| Add back depreciation expense | 367 | 331 | 433 | 647 | ||||||||||||
| Add back amortization expense | 120 | 158 | 229 | 511 | ||||||||||||
| Add back amortization expense included in cost of revenue | 254 | 256 | 445 | 515 | ||||||||||||
| Add back deferred revenue grind (1) | 1,160 | 74 | 2,014 | 298 | ||||||||||||
| Adjusted EBITDA | $ | 379 | $ | (348 | ) | $ | 1,108 | $ | (557 | ) | ||||||
| Adjusted EBITDA margin % | 7 | % | -5 | % | 11 | % | -4 | % | ||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Corporate | 2010 | 2011 | 2010 | 2011 | ||||||||||||
| (a) Reconciliation from GAAP results to Adjusted EBITDA | ||||||||||||||||
| Operating loss | $ | (3,140 | ) | $ | (4,692 | ) | $ | (5,922 | ) | $ | (9,799 | ) | ||||
| Add back stock compensation expenses | 551 | 1,015 | 996 | 1,993 | ||||||||||||
| Adjusted EBITDA | $ | (2,589 | ) | $ | (3,677 | ) | $ | (4,926 | ) | $ | (7,806 | ) | ||||
| Adjusted EBITDA margin % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| (1) Deferred revenue grind represents the fair value adjustment required to reduce the historical deferred revenue liabilities from acquisitions to the fair value of the Company’s legal performance obligations plus a normal profit margin based on fulfillment effort. | ||||||||||||||||
| CDC Software | ||||||||
| Unaudited Reconciliation From GAAP Results to Non-GAAP Net Income | ||||||||
| (Amounts in thousands of U.S. dollars except share and per share data) | ||||||||
| Table 9 | ||||||||
| Three months ended | ||||||||
| June 30, | ||||||||
| 2010 | 2011 | |||||||
| (a) Reconciliation from GAAP net income (loss) attributable to controlling interest to Non-GAAP net income and Non-GAAP net income per share | ||||||||
| Net income (loss) attributable to controlling interest | $ | 2,975 | $ | (3,989 | ) | |||
| Add back restructuring and other charges | 229 | 148 | ||||||
| Add back amortization expense | 1,293 | 1,635 | ||||||
| Add back amortization expense included in cost of revenue | 3,457 | 2,858 | ||||||
| Add back stock based compensation | 551 | 1,015 | ||||||
| Add back exchange loss (gain) | (1,156 | ) | 1,912 | |||||
| Add back deferred revenue grind (1) | 1,444 | 82 | ||||||
| Add back non cash tax expense | 871 | 542 | ||||||
| Tax effect on all reconciling items | (1,629 | ) | (1,989 | ) | ||||
| Non-GAAP net income | $ | 8,035 | $ | 2,214 | ||||
| Non-GAAP net income as a % of revenue | 15 | % | 4 | % | ||||
| Total weighted average shares outstanding (basic and dilutive) | 28,432,468 | 27,484,433 | ||||||
| Non-GAAP net income per share (basic and dilutive) | $ | 0.28 | $ | 0.08 | ||||
| Three months ended | ||||||||
| March 31, | June 30, | |||||||
| 2011 | 2011 | |||||||
| (a) Reconciliation from GAAP net loss attributable to controlling interest to Non-GAAP net income and Non-GAAP net income per share | ||||||||
| Net loss attributable to controlling interest | $ | (2,207 | ) | $ | (3,989 | ) | ||
| Add back restructuring and other charges | 1,074 | 148 | ||||||
| Add back amortization expense | 1,606 | 1,635 | ||||||
| Add back amortization expense included in cost of revenue | 3,082 | 2,858 | ||||||
| Add back stock based compensation | 978 | 1,015 | ||||||
| Add back exchange gain | 519 | 1,912 | ||||||
| Add back deferred revenue grind (1) | 263 | 82 | ||||||
| Add back non cash tax expense (benefit) | (231 | ) | 542 | |||||
| Tax effect on all reconciling items | (1,956 | ) | (1,989 | ) | ||||
| Non-GAAP net income | $ | 3,128 | $ | 2,214 | ||||
| Non-GAAP net income as % of revenue | 6 | % | 4 | % | ||||
| Total weighted average shares outstanding (basic and dilutive) | 27,597,757 | 27,484,433 | ||||||
| Non-GAAP net income per share (basic and dilutive) | $ | 0.11 | $ | 0.08 | ||||
| (1) Deferred revenue grind represents the fair value adjustment required to reduce the historical deferred revenue liabilities from acquisitions to the fair value of the Company’s legal performance obligations plus a normal profit margin based on fulfillment effort. | ||||||||
| CDC Software | |||||||||
| Unaudited Reconciliation From GAAP Revenue to Non-GAAP Revenue | |||||||||
| (Amounts in thousands of U.S. dollars) | |||||||||
| Table 10 | |||||||||
| Three months ended | |||||||||
| GAAP Results | June 30, 2010 | March 31, 2011 | June 30, 2011 | ||||||
| On Premise | |||||||||
| Licenses | $ | 8,608 | $ | 6,201 | $ | 8,601 | |||
| Maintenance | 23,546 | 24,690 | 25,125 | ||||||
| Professional services | 14,763 | 13,706 | 14,347 | ||||||
| Hardware | 1,142 | 1,161 | 1,646 | ||||||
| Total On Premise | 48,059 | 45,758 | 49,719 | ||||||
| Cloud | |||||||||
| Licenses | $ | 209 | $ | 198 | $ | 68 | |||
| Maintenance | 316 | 831 | 804 | ||||||
| Professional services | 1,315 | 1,066 | 1,083 | ||||||
| SaaS | 2,677 | 4,523 | 4,711 | ||||||
| Total Cloud | 4,517 | 6,618 | 6,666 | ||||||
| Total revenue | $ | 52,576 | $ | 52,376 | $ | 56,385 | |||
| Three months ended | |||||||||
| (a) Non-GAAP Adjustment (1) | June 30, 2010 | March 31, 2011 | June 30, 2011 | ||||||
| On Premise | |||||||||
| Licenses | $ | - | $ | - | $ | - | |||
| Maintenance | 284 | 32 | 6 | ||||||
| Professional services | - | 6 | 2 | ||||||
| Total On Premise | 284 | 38 | 8 | ||||||
| Cloud | |||||||||
| Licenses | $ | - | $ | - | $ | - | |||
| Maintenance | 509 | 36 | 16 | ||||||
| Professional services | 179 | 39 | 9 | ||||||
| SaaS | 472 | 149 | 49 | ||||||
| Total Cloud | 1,160 | 224 | 74 | ||||||
| Total revenue | $ | 1,444 | $ | 262 | $ | 82 | |||
| Three months ended | |||||||||
| (a) Non-GAAP Results | June 30, 2010 | March 31, 2011 | June 30, 2011 | ||||||
| On Premise | |||||||||
| Licenses | $ | 8,608 | $ | 6,201 | $ | 8,601 | |||
| Maintenance | 23,830 | 24,722 | 25,131 | ||||||
| Professional services | 14,763 | 13,712 | 14,349 | ||||||
| Hardware | 1,142 | 1,161 | 1,646 | ||||||
| Total On Premise | 48,343 | 45,796 | 49,727 | ||||||
| Cloud | |||||||||
| Licenses | $ | 209 | $ | 198 | $ | 68 | |||
| Maintenance | 825 | 867 | 820 | ||||||
| Professional services | 1,494 | 1,105 | 1,092 | ||||||
| SaaS | 3,149 | 4,672 | 4,760 | ||||||
| Total Cloud | 5,677 | 6,842 | 6,740 | ||||||
| Total revenue | $ | 54,020 | $ | 52,638 | $ | 56,467 | |||
| (1) Non-GAAP adjustment represents deferred revenue grind adjustment required to reduce the historical deferred revenue liabilities from acquisitions to the fair value of the Company’s legal performance obligations plus a normal profit margin based on fulfillment effort. | |||||||||