|By Business Wire||
|July 24, 2014 12:39 PM EDT||
The Board of Directors of Axway Software, under the chairmanship of Pierre Pasquier, closed the financial statements for the first six months of 2014, which show:
- Total revenue of €114.9 million in H1/2014 with organic growth of 5.7% compared to the first half of 2013;
- Profit on operating activities of €5.4 million or 4.7% (compared with 6.7% in the first half of 2013);
- Net profit of €2.8 million.
|Key income statement items||HY 2014||HY 2013||FY 2013|
|(in M€)||( % Rev)||(in M€)||( % Rev)||(in M€)||(% Rev)|
|Profit on operating activities||5.4||4.7%||7.1||6.7%||37.5||15.8%|
|Profit from recurring operations||3.0||2.6%||4.6||4.3%||32.4||13.7%|
|Other income and expense||-1.0||-5.2||-5.3|
|Net financial costs and currency impact||-0.7||-0.5||-1.3|
|Net profit - Groupe share||2.8||2.4%||9.8||9.2%||35.6||15.0%|
|(in €)||(in €)||(in €)|
|Basic net earnings per share||0.13||0.48||1.75|
Comments on activity
On overall activity: The demand in Middleware's historical segments (MFT/B2B/Integration) is continuing to undergo a major transformation, confirming the importance of incorporating today's emergent yet extremely dynamic technologies (API and Operational Intelligence-OI). The impact of these new technologies in the Middleware segment is still limited and led to an overall stable level of licenses over Q2.
Revenue by region, France has sustained excellent growth over the past two years. The Rest of Europe remains well positioned with the exception of Germany on the second quarter. Axway's business remained under pressure in the United States where a slowdown in demand for infrastructure projects has been observed.
Revenue by geographical zone
|1st Quarter||2014||2013 Published||2013 Pro forma||
|Rest of Europe||14.1||12.3||12.3||14.3%||14.1%|
|2nd Quarter||2014||2013 Published||2013 Pro forma||Total Growth||
|Rest of Europe||15.0||14.4||14.5||3.7%||3.2%|
|1st Semester||2014||2013 Published||2013 Pro forma||Total Growth||
|Rest of Europe||29.0||26.7||26.8||8.6%||8.2%|
(1) at constant exchange rates and scope of consolidation
Revenue by activity, weak demand from the infrastructure market
has penalized Licenses, especially in the USA. There was a lack of
“major contract” wins during the second quarter, which was not
compensated by the very encouraging gains made in the API and OI
Maintenance's outstanding performance should be underscored and it now represents more than half (50%) of the overall business activity over the six-month period.
Services continue to make a turnaround with total growth of close to 10% during the first half.
Revenue by type of activity
(1) at constant exchange rates and scope of consolidation
Customers have greeted the OI (Operational Intelligence) technology,
coming from the Systar acquisition in the first half of 2014, as a real
enhancement to Axway's offering and the products synergies have been
developing very naturally.
In the first half of 2014, management devoted a considerable amount of energy to the Systar acquisition that was successfully completed in June 2014, now allowing an integration project to take place in the second half of 2014.
Profit on operating activities amounted to €5.4 million (4.7% of revenue). In comparison with the first half of 2013, the weaker performance of Licenses in the second quarter of 2014 should be taken into account.
Axway sustained a robust financial position at June 30, 2014, with a
cash balance of €41.3 million and equity totaling €255.3 million. Bank
indebtedness amounted to €60.9 million at June 30, 2014 including the
financing for the acquisition of Systar in April 2014. The company’s
debt at June 30, 2014 allows us to comfortably respect our banking
The June 30, 2014 net income per share of €0.13 per share is not directly comparable to the same period of 2013. The 2013 first semester net result integrates the GSA matter settlement with the American Department of Justice and the activation of the tax losses in the United States, made possible from the growth in profitability (historic and forecasted) of the US subsidiary of the group. Without the impact of these two exceptional items, our net result would have been €5.6 million or €0.27 per share as compared to €0.13 per share for the same period in 2012.
The consolidated interim financial statements were subject to a limited audit. The limited audit report is in the process of being published.
The integration of Systar's teams during the first half of 2014 led to
an increase in the Group's employees as at June 30, 2014.
At June 30, 2014, Axway’s workforce numbered 1,984 employees (722 in France and 1,262 outside France), an increase of 201 people from December 31, 2013 (and of 186 people from June 30, 2013).
Axway's positioning as a specialist in governing the flow of data is based on:
- A state-of-the-art offering requiring frequent product investments and enhancements to the functional scope (such as API and OI);
- Being a leading player in the market in formalizing and offering value propositions to customers with business investments and marketing as the driving factors in achieving this.
Axway's strategy is consistent with this approach. Using its position in governing the flow of data, it aims to reflect the changes in the Middleware market, which is seeking to implement solutions that go beyond the coverage of technological capabilities and respond to the challenges of the digital company.
As with each year, the performance in the first half does not provide any particular indication as to what the overall performance for the year will be. The following events should be taken into account for Axway: the slowdown in licenses recorded in the second quarter; the change in demand leading to a momentum differentiating the relevant technologies; the necessary efforts to integrate Systar in order for it to achieve an appropriate level of profitability at year-end as well as the expected volume of licenses by the end of the year, which is not fully visible at present. With this in mind:
- Axway confirms its outlook for positive organic growth in 2014;
- The operating profit margin should be similar to that of 2013.
Friday, July 25, 2014:
- 2:30 pm: French Society of Financial Analysts (SFAF) meeting at the Shangri-La Hotel in Paris (in French).
- 6:00 pm: Webinar (in English)
Thursday, October 30, 2014 (before the market opening): Publication of the Q3 2014.
The company will publish its half-year financial report in French on August 29, 2014. This report will be available at www.finance.axway.com under the Financial Documents tab and also on the AMF website: www.amf-France.org.
|(in thousands of euros)||HY 2014||HY 2013||FY 2013|
|Licenses||27 837||26 970||75 583|
|Maintenance||57 395||52 417||106 348|
|Total Product Revenue||85 232||79 387||181 931|
|Services||29 638||26 979||55 613|
|Total Revenue :||114 870||106 366||237 544|
|Costs of sales:|
|Product Revenue||11 498||10 547||20 721|
|Services||28 106||25 734||51 407|
|Total Costs of sales :||39 604||36 281||72 128|
|Gross profit:||75 266||70 085||165 416|
|as a % of Revenue||65.5%||65.9%||69.6%|
|Operating expenses :|
|Sales and marketing||37 180||33 870||70 763|
|Research and development||20 186||17 642||33 636|
|General and administrative||12 491||11 443||23 549|
|Total operating expenses :||69 858||62 955||127 948|
|Profit on operating activities||5 408||7 130||37 468|
|as a % of Revenue||4.7%||6.7%||15.8%|
|Stock option releated expenses||(437)||(645)||(1 352)|
|Amortization of intangible assets||(1 991)||(1 898)||(3 679)|
|Profit from recurring operations||2 980||4 587||32 437|
|as a % of Revenue||2.6%||4.3%||13.7%|
|Other income and expenses||(969)||(5 177)||(5 271)|
|Operating profit||2 012||(590)||27 166|
|Cost of net financial debt||(407)||(204)||(674)|
|Other financial revenues and expenses||(276)||(275)||(656)|
|Income taxes||1 633||10 881||9 759|
|Net Profit of the consolidated group||2 962||9 813||35 595|
|as a % of Revenue||2.6%||9.2%||15.0%|
|Net Profit - Groupe share||2 759||9 813||35 595|
|as a % of Revenue||2.4%||9.2%||15.0%|
|Basic net earnings per share (in Euro)||0.13||0.48||1.75|
|Simplified Balance Sheet||30/06/2014||31/12/2013||30/06/2013|
|(in M€)||(in M€)||(in M€)|
|Property, plant and equipment||6.9||6.3||5.9|
|Other non-current assets||57.0||45.7||30.4|
|Other current assets||13.4||8.3||22.7|
|Cash and cash equivalents||41.3||49.2||54.1|
|SHAREHOLDERS’ EQUITY AND LIABILITIES|
|Capital reserves and results||214.2||217.4||198.0|
|Total shareholders’ equity||255.3||258.4||238.7|
|Financial debt – long term portion||51.1||28.5||37.9|
|Other non-current liabilities||22.0||15.5||19.6|
|Financial debt – short-term portion||13.0||9.5||4.7|
|Other current liabilities||111.1||80.1||96.8|
|TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES||452.6||392.0||397.7|
|Cash Flow Statement||HY 2014||HY 2013||FY 2013|
|(in M€)||(in M€)||(in M€)|
|Net profit for the period||3.0||9.8||35.6|
|Net charges to amortizations, depreciations and provisions||4.6||8.1||8.0|
|Other income and expense items||0.6||1.0||1.7|
|Cash from operations after cost of net debt and tax||8.2||18.9||45.3|
|Changes to operating working capital requirements||21.3||19.8||(3.6)|
|Costs of net financial debt||0.4||0.4||0.7|
|Income tax paid net of accrual||(2.2)||(12.1)||(14.1)|
|Net cash from operating activities||27.7||27.0||28.3|
|Net cash used in investing activities||(52.5)||(1.5)||(3.6)|
|Proceeds on shares issued||1.0||0.5||2.2|
|Change in loan||23.9||-||(4.4)|
|Net interest paid||(0.4)||(0.4)||(0.7)|
|Net cash from (used in) financing activites||16.6||(6.8)||(9.7)|
|Effect of foreign exchange rate changes||0.4||-||(1.2)|
|NET CHANGE IN CASH AND CASH EQUIVALENTS||(7.9)||18.7||13.8|
|Opening cash position||49.2||35.4||35.4|
|CLOSING CASH POSITION||41.3||54.1||49.2|
This document is a free translation into English of the original French press release. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.
Axway (NYSE Euronext: AXW.PA), a market leader in governing the flow of data, is a global software company with more than 11,000 public- and private-sector customers in 100 countries. For more than a decade, Axway has empowered leading organizations around the world with proven solutions that help manage business-critical interactions through the exchange of data flowing across the enterprise, among B2B communities, cloud and mobile devices. Our award-winning solutions span business-to-business integration, managed file transfer, operational intelligence, API and identity management, and email security– offered on premise and in the Cloud with professional and managed services. Axway is registered in France with headquarters in the United States and offices in 19 countries.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Jul. 29, 2015 02:30 PM EDT
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 29, 2015 02:30 PM EDT Reads: 281
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 29, 2015 02:17 PM EDT
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Jul. 29, 2015 02:00 PM EDT Reads: 1,162
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 02:00 PM EDT Reads: 330
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 29, 2015 01:45 PM EDT Reads: 417
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Jul. 29, 2015 01:00 PM EDT Reads: 1,054
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
Jul. 29, 2015 01:00 PM EDT Reads: 1,944
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 12:00 PM EDT Reads: 326
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Jul. 29, 2015 11:00 AM EDT Reads: 355
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Jul. 29, 2015 11:00 AM EDT Reads: 257
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 29, 2015 10:15 AM EDT Reads: 1,104
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 29, 2015 09:00 AM EDT
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 29, 2015 07:30 AM EDT Reads: 274
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Jul. 29, 2015 07:00 AM EDT Reads: 178