Interim report for Q1 2016: Three North American Orders and Improved Outlook for The Year

EBIT for the three-month period was EUR 5.9m, compared with EUR 6.6m in the year-earlier period. Adjusted non-GAAP EBIT increased by 61% to EUR 10.6m.  

Net profit for Q1 2016 was EUR 4.5m compared with EUR 4.3m in Q1 2015.

SimCorp maintains its expectations for reported revenue growth and EBIT margin measured in local currency for 2016. Revenue growth measured in local currencies is still expected to be between 3% and 8%, and the expectation for EBIT margin measured in local currencies remains between 21% and 24%. However, SimCorp updates it expectations for the adjusted non-GAAP revenue growth in local currencies to be between 8% and 15% (previously between 8% and 13%) and the expectation for adjusted non-GAAP EBIT margin measured in local currencies to be between 24% and 28% (previously between 24% and 27%).

SimCorp will initiate a share buy back program of EUR 40m to be executed in the period from 10 May 2016 to 20 February 2017.

At 31 March 2016, contracts equalling EUR 202m of the projected 2016 reported revenue had been secured. This is EUR 5m more than at the same point in time last year.

Klaus Holse, SimCorp CEO, comments: “With three new SimCorp Dimension® contracts in the important North American market and a new SimCorp Coric contract in the UK, we are off to a good start in 2016. Our pipeline continues to develop, we see more new sales cases coming to the market and we experience an increasing demand for our professional services supported by our continued new service offerings. All in all, we are confident about our improved financial outlook for the year.“

SimCorp’s Board of Directors today reviewed and approved the Group’s interim report for the three months ended 31 March 2016. Highlights of the report are:

  • Total order intake from new licenses and add-on licenses for the first three months of the year was EUR 10.9m, which was EUR 2.2m lower than in the year-earlier period. The order book increased by EUR 4.9m compared with the order book at 31 December 2015 to EUR 29.0m at 31 March 2016. Page 5
  • Revenue for the first three months of the year increased 6.9% y/y measured in local currencies and EUR 59.6m in reported currency, an increase of 5.5% y/y. Page 6
  • Adjusted non-GAAP revenue for the first three months of the year was up 15.4% y/y measured in local currencies and EUR 64.4m in reported currency, an increase of 13.9% y/y. Page 6
  • Recurring revenue was EUR 37.7m compared with EUR 36.6m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 0.4m. Page 7
  • Non-recurring revenue was EUR 21.9m compared with EUR 19.9m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 0.4m. Page 7
  • Total cost for the three months ending 31 March 2016 was EUR 53.8m, an increase of 7.9% compared with the same period last year, of which currency fluctuations reduced costs by EUR 0.5m (0.9%-points). Page 7
  • EBIT for the first three months of the year was EUR 5.9m, a decrease of EUR 0.7m compared with the same period last year. Page 9
  • Adjusted non-GAAP EBIT for the first three months of the year increased by 61% to EUR 10.6m. Page 9
  • Cash flow from operating activities before financial items was EUR 24.2m compared with EUR 22.0m in the same period of 2015. Page 10
  • SimCorp maintains its expectations for full-year revenue growth measured in local currencies of 3-8% and an EBIT margin measured in local currencies of between 21% and 24%. Expectations for adjusted non-GAAP revenue growth in local currency is updated to be expected to be between 8% and 15% (previously between 8% and 13%) and the expectation for adjusted non-GAAP EBIT margin measured in local currencies is updated to be expected to be between 24% and 28% (previously between 24% and 27%). Based on currency rates prevailing at the end of April 2016, SimCorp expects a negative impact from currency fluctuations on full-year revenue growth of around 2% (unchanged) and a negative currency impact on EBIT margin of around 0.2% (previously around 0.5%). Page 11
  • At 31 March 2016, contracts equalling EUR 202m of the projected 2016 reported revenue had been secured, EUR 5m more than at the same time last year. The Group’s pipeline of potential license contracts supports the expected growth in revenue. Page 11

Investor meeting

SimCorp’s Executive Management Board will present this interim report at an investor meeting on Tuesday 10 May 2016 at 2:00 PM (CEST) 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://edge.media-server.com/m/p/hcp4taoj.

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)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Company Announcement no. 15/2016