SimCorp signed five new contracts in the second quarter of the year – four related to SimCorp Dimension and one related to the recently acquired SimCorp Coric.
Revenue for H1 2014 increased 7% measured in local currencies and 5% in EUR and amounted to EUR 108.4m, EUR 5.3m higher than for the same period last year.
EBIT for the six-month period was EUR 16.8m, compared with EUR 18.3m the year-earlier period. Currency exchange rate fluctuations have impacted EBIT positively by EUR 0.1m in the six-month period.
Net profit for H1 2014 was EUR 12.7m compared with EUR 12.9m in H1 2013.
SimCorp now expects revenue growth measured in local currencies to be 8-10% (previously 10%) including the impact of the Equipos acquisition. The expectation for EBIT margin is increased by around half a percentage point in both local and reported currencies and is now around 24.5% (previously 24%) and around 24.3% (previously 23.8%), respectively.
At 30 June 2014, contracts equaling EUR 193m of the projected 2014 revenue had been secured, EUR 10m more than at the same point in time last year.
Klaus Holse, SimCorp CEO comments: “The sale of new licenses picked up in Europe during Q2 after a slow start to the year. The challenges in the North American market are expected to continue into 2015, but with our new head of North America on board from September we have taken an important step to address the situation in this key market”.
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SimCorp’s Board of Directors today considered and approved the Group’s interim report for the six months ended 30 June 2014. Highlights of the report are:
- Revenue for H1 was up 7% y/y in local currencies and 5% y/y in reported currency to EUR 108.4m, including revenue of EUR 2.0m SimCorp Coric. Q2 revenue increased by 9% compared with the same period last year and amounted to EUR 58.8m, including revenue of EUR 1.5m SimCorp Coric. Page 6
- H1 order inflow was EUR 9.1m compared with EUR 15.2m in H1 2013. Q2 order inflow increased by 22% compared with Q2 2013 to EUR 7.1m. The order book decreased by EUR 2.3m during the quarter, and amounted to EUR 9.6m at 30 June 2014, compared with EUR 14.7m at the same time in 2013. Page 5
- Income recognized from licenses and add-on licenses amounted to EUR 14.2m in the six-month period, a decrease of 1% y/y, and amounted to EUR 10.4m in Q2, an increase of 22% compared with the year-earlier period. Page 6
- Revenue from professional services remained at a satisfactory level. Professional service fees for the first six months of the year were EUR 38.4m, up 8% relative to the same period last year. In Q2 professional fees were EUR 20.2m, an increase of 6% compared with the same period last year. Page 6
- Maintenance income for the six months was EUR 54.2m, an increase of 5% relative to the same period last year. Maintenance income in Q2 2014 was EUR 27.5m, an increase of 6% compared with the year-earlier period. Page 6
- Total cost for the six months amounted to EUR 91.6m, an increase of 8% compared with the same period in 2013. Excluding the impact of SimCorp Coric the growth was 4.5%. In Q2 total cost was EUR 46.9m, an increase of 9.6% on the same period last year. Excluding the impact from SimCorp Coric the growth was 5.1%. Page 7
- H1 EBIT showed a profit of EUR 16.8m, which is 8% or EUR 1.5m lower than the same period last year, including a negative impact of EUR 1.0m from SimCorp Coric. Q2 EBIT was EUR 11.9m, against EUR 11.3m in Q2 last year, including a negative impact of EUR 0.5m from SimCorp Coric. Page 8
- The H1 cash flow from operating activities was EUR 15.8m compared with EUR 22.4m in the same period of 2013 as a result of temporary delays in receivables. Page 10
- The impact on the full year expectations from the Equipos Ltd. acquisition is maintained at a 2% points impact on revenue measured in both local and reported currencies and a 0.5% point negative impact on EBIT margin in both local and reported currencies. Page 10
- SimCorp now expects full year revenue growth measured in local currencies of between 8% and 10% (previously 10%) and expects EBIT margin measured in local currencies to be around 24.5% (previously 24%). Based on currency rates at 31 July 2014 SimCorp now expects full-year revenue growth in reported currency of 7% to 9% (previously 8.5%) and EBIT margin in reported currency of around 24.3% (previously 23.8%). Page 12
- At 30 June 2014, contracts equaling EUR 193m of the projected 2014 revenue had been secured, EUR 10m more than at the same time last year. The Group’s pipeline of potential license contracts supports the expected growth in revenue. Page 12
SimCorp’s Executive Management Board will present this interim report at an investor meeting Monday 1 September 2014 at 9:00 a.m. at the company’s headquarters, Weidekampsgade 16, 2300 Copenhagen S. The meeting will be open to the public, and a live webcast of the presentation can be followed via this link, where it will be possible to ask questions online: http://www.media-server.com/m/p/7rqrqb2d.
The presentation will be available afterwards via SimCorp’s website www.simcorp.com.
Enquiries regarding this announcement should be addressed to:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000) or
Thomas Johansen, Chief Financial Officer, SimCorp A/S (+45 3544 6858, +45 2811 3828)
Company Announcement no. 34/2014