PARIS--(BUSINESS WIRE)--Regulatory News:
Axway (Paris:AXW) today announces that it has achieved its 2022 objective to rationalize its product portfolio thanks to several operations carried out in recent months. In line with its strategy to focus on its core products and divest from businesses that are no longer aligned with its growth and profitability ambitions, the Company has disposed of or discontinued several specialized products since the beginning of the year.
Patrick Donovan, Chief Executive Officer, declared:
“During 2022, we have been working on refocusing our product strategy to enable us to concentrate more effectively on the strengths within our portfolio, which are our MFT, B2B, Amplify APIM and Axway Financial Accounting Hub offerings. However, with over 20 years of presence in our markets, we also have a number of specialized products. Many of them are in line with our long-term goals and will continue to evolve in our catalog, but others no longer meet the requirements of our current strategy. As we intended, several of these non-growing and/or unprofitable products have been subject to strategic actions. At the beginning of the year, we discontinued certain products and organized the migration of our historical customers to other solutions. In Q2, we donated a product to the open-source community and stopped its development and support. In mid-September, we proceeded with a first disposal and we have just finalized a second one. All the products concerned were mobilizing significant resources, without sufficient cohesion with our major offerings. We are therefore continuing to improve our operational efficiency, to deliver even more value to our customers and partners worldwide.”
Financial impacts1
The various operations described above will have an accretive effect on Axway's growth as of 2023. For information purposes, the products disposed of or discontinued represented approximately 5% of the Company's revenue in 2021.
As some of the products concerned still had an unamortized intangible asset value or related goodwill, Axway will recognize in its 2022 financial statements a non-cash charge related to their write-off estimated at between €75m and €85m. The tax impact of the latest transactions is currently being assessed and will be communicated in detail on the announcement of the 2022 annual results.
Axway also specifies that the operations undertaken to rationalize its product portfolio are not likely to affect the ability of its Board of Directors, should it decide, to propose and have the Company to pay a dividend for the 2022 financial year.
Financial Calendar
Wednesday, February 22, 2023, after market closing: Publication of 2022 Full-Year Results
Wednesday, February 22, 2023, 6:30 pm (UTC+1): 2022 Full-Year Results Virtual Analyst Conference
Disclaimer
This press release contains forward-looking statements that may be subject to various risks and uncertainties concerning Axway’s growth and profitability. Activity during the year and/or actual results may differ from those described in this document as a result of a number of risks and uncertainties set out in the 2021 Universal Registration Document filed with the French Financial Markets Authority (Autorité des Marchés Financiers, AMF) on March 24, 2022, under number D.22-0145. The distribution of this document in certain countries may be subject to prevailing laws and regulations. Persons present in these countries and in which this document is disseminated, published, or distributed, should obtain information about such restrictions, and comply with them.
About Axway
Axway enables enterprises to securely open everything by integrating and moving data across a complex world of new and old technologies. Axway’s API-driven B2B integration and MFT software, refined over 20 years, complements Axway Amplify, an open API management platform that makes APIs easier to discover and reuse across multiple teams, vendors, and cloud environments. Axway has helped over 11,000 businesses unlock the full value of their existing digital ecosystems to create brilliant experiences, innovate new services, and reach new markets. Learn more at axway.com
1 Non-audited figures, audit procedures by the Statutory Auditors are in progress.
