Highlights â Second Quarter 2007
â¢ Excellent second quarter with strong sales performance and business momentum. Revenues grew by 32% in the quarter and EBIT by 34% compared to Q2 06.
â¢ Licence revenues for the last twelve months were 32% up, and in the quarter were flat compared to Q2 06, lapping an unusually high comparative quarter which included revenues from two large Tier 1 retail deals. Maintenance revenues growth for the quarter accelerated to 48% compared to Q2 06 as a result of our strong signings growth over the last 12 months. Service margin was at 3% for the quarter compared to -16% for Q2 2006 as we continue to benefit from our services initiatives.
â¢ Business model significantly ahead of three year strategic plan â 12 month comparisons favourable and point to excellent top line and licence revenue growth, cost leverage and cash flow generation. In the 12 months to 30 June 07:
- Revenues up 36%
- Licence Revenues up 32%
- Maintenance Revenues up 30%
- Service Revenues up 48%
- Operating costs up 33%
- EBITDA up 47%
- EBIT up 53%
- Diluted EPS up 32%
- Cash Flow from Operations more than tripled at US$44.0m compared to US$13.6m in the 12 months to 30 June 2006
Based on our continued business momentum we are increasing our 2007 outlook for revenues and profitability for the sixth consecutive quarter
Andreas Andreades, Chief Executive, commented: âIt is a pleasure to report on such an outstanding performance and to increase our outlook for the second time for 2007. The business has performed exceptionally well across the board. We have been able to deliver above plan revenue and licence growth and continue to deliver significant profit improvement. Our outlook for 2007 is ahead of our strategic plan and targets for 2007 based on strong demand for our products and excellent execution. We continue to have product superiority and our investment and product roadmap is compelling. This means our win ratio against competition has remained consistently high at above 80%. Our growth initiatives are already delivering significant results and the integration of ACTIS.BSP is ahead of plan. Our distribution is in place and becomes more effective through our services initiatives. Our partnership with Metavante is developing successfully and management is focused on executing on the opportunity that we see to deliver exceptional growth and shareholder valueâ.