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Axway: Total Revenue Growth up 17.6% in the First Half of 2015. the Second Quarter Adds to the Organic Growth Observed in the First Quarter and Confirms the Trend.Regulatory News: The Board of Directors of Axway Software (Paris:AXW), convened under the chairmanship of Pierre Pasquier, closed the financial statements for the first six months of 2015. Highlights include:
Comments on activity On overall activity: Q2 2015 accelerated the organic growth seen by the Group in the first three months of the year and confirmed the trend. This led to a very solid H1 2015, validating the positioning chosen by the company. The middleware market is continuing its transformation, resulting in particular in a major change in demand on the traditional middleware segments (MFT/B2B/Integration) and the gradual ramp-up of emerging technologies (API, Operational Intelligence-OI), which have been gathering momentum since the start of the year. Revenue by region, France continued the excellent growth seen for more than two years now, with organic growth of above 9% in H1 2015. Q2 confirms a return to organic growth in the Americas, which increased 2% in the half-year. Rest of Europe saw a high quality Q2 with organic growth of 2.2%.
(1) at constant exchange rates and scope of consolidation By type of activity, licenses posted organic growth of 10.3% in Q2, which led to a very encouraging level of orders in H1. France, Germany and Asia/Pacific boasted the highest licenses performances. The strong overall level of licenses obtained in Q4 2014 boosted implementation projects, driving organic growth in services to 6.7% in Q2. The excellent performance of maintenance should be noted, now representing more than 50% of overall activity in the half-year.
(1) at constant exchange rates and scope of consolidation Profit from operating activities was €12.7 million (9.4% of revenue), a very significant rise on H1 2014. This reflects both the strong increase in revenue in the half-year (4.3% organic growth) and control of operating expenses. The company is currently undertaking a process of rationalisation as part of its efforts to improve the efficiency of its operational systems (R&D, commercial activity). This is reflected in an €8.1 million provision charge to "Other income and expenses" and resulted in a slight fall in operating profit. Financial position At 30 June 2015, Axway's financial position remains robust with a cash balance of €41.7 million and shareholders' equity totaling €307.5 million. Bank debt amounted to €6.6 million at 30 June 2015, including repayment of the portion of bank loans that had been drawn. The company's banking covenants are thus comfortably respected. Earnings per share amounted to €0.11 at 30 June 2015 compared with €0.13 in H1 2014. Net profit in H1 2015 includes the impact of the rationalization of production processes that the company has been implementing since the start of the year. The consolidated interim financial statements were subject to a limited audit. The limited audit report is in the process of being published. Changes in Workforce At 30 June 2015, Axway's workforce numbered 1,926 employees (692 in France and 1,234 in other countries), down by 35 people compared to end-2014. Strategy & Prospects The Middleware market is undergoing a transformation, both in terms of its technological scope to cover the requirements of digital, as well as in procurement practices by businesses (Software as a Service). Providers must therefore innovate to boost traditional segments (for example, MFT, B2B), incorporate appropriate technologies to serve mobile and cloud integrations and extend their business model. In this context, Axway has decided to revisit the strategic plan prepared in 2011 at the time of its IPO. This analysis, which is expected to be completed rapidly, will strengthen the company by identifying appropriate adjustments to best respond to market developments. As with each year, performance in H1 does not provide any particular indication of overall performance in the full year. In the short term, and continuing the trend seen in H1 2015, the next half-year looks encouraging, with promising commercial portfolios. Jean-Marc Lazzari, Chief Executive Officer of Axway, commented: "In our strategic reflection we have prioritised realignment with Axway's target markets and the positioning of our offers. This is a natural progression for a software company. From here, a medium-term development plan is being prepared, which will form the basis of the company's roadmap. This will of course be a central feature of presentations on the annual results". Financial Calendar Thursday 30 July 2015:
Tuesday 27 October 2015 (after market closing): Publication of Q3 2015 results. The company will publish its half-year financial report in French on 28 August 2015. 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.
Cash Flow Statement
Disclaimer 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. About Axway Axway (Euronext: AXW.PA), market leader in governing the flow of data, is a software company with more than 11,000 customers in the private and public sectors in 100 countries. For more than a decade, Axway has empowered leading organisations 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. Axway (Euronext: AXW.PA), They span B2B integration, Managed File Transfer, Operational Intelligence, API and identity management, and email security. For more than a decade, Axway has empowered leading organisations 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. More information is available at: www.investors.axway.com View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006207/en/ |