Exact Software Announces Full-Year Results for 2007

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Exact reports strong organic license revenue growth of 7.5% mainly fueled by Exact Synergy

Revenue growth and organizational realignment drives EBIT margin to 20.5%

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Delft

, February 7, 2008 – Exact Holding N.V. (Exact) announces its full-year results 2007.

 

Financial Highlights

·         

Total revenue excluding foreign exchange rate effects grew by 6.3% to € 257.4 million. Including foreign exchange rate effects revenue grew by 4.1% to € 252.1 million (2006: € 242.1 million).

·         

EBITDA amounts to € 57.0 million, representing an EBITDA margin of 22.6% (2006: 21.7%).

·         

EBIT increased by 8.5% to € 49.8 million representing an EBIT margin of 19.8% (2006: 19.0%).
Excluding a one-off charge to settle a legal case in the

USA

(€ 1.9 million), EBIT margin improved to 20.5%.

·         

Net income increased by 13.7% to € 39.1 million (2006: € 34.4 million).

·         

EPS increased by 12% to € 1.59 (2006: € 1.42). Cash EPS increased by 17% to € 2.02 (2006: € 1.73).

·         

A final dividend payout of € 0.83 per share will be proposed in addition to the interim dividend of € 0.76 per share paid in August 2007, amounting to a total dividend for 2007 of € 1.59. This represents a 100% payout of net income in line with dividend policy.

 

Strategic and Operational Highlights

·         

Organic

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license revenue grew by 7.5% as a result of an increase in new business sales and further penetration of Exact Synergy in the existing customer base.

·         

Growth of Exact Synergy-related revenue remained very strong at 18.5% across all targeted segments.

·         

Successful execution of Exact’s parenting strategy focusing on international companies contributed substantially to the organic license revenue growth and led to a healthy growth of Exact Globe.

·         

Exact Online continued its very strong performance; the total number of subscriptions has exceeded 5,000.

·         

Major contract wins: Adecco, FC Sevilla, TÜV Süd, Coldwell Banker, Ordina and KPN.

·         

Acquisition and successful integration of Solid Data (BE) in January and alphaSIGMA (

USA

) in April in line with Exact’s acquisition strategy.

·         

Acquisition of Longview Solutions (CAN) in November, a leading provider of Corporate Performance Management (CPM) software, strengthening Exact’s business empowerment software portfolio.

·         

Successful realignment of organizational structure into regions contributed to EBIT margin improvement to 20.5% excluding a one-off charge to settle a legal case in the

USA

(2006: 19.0%).

 

Outlook

·         

Exact gives guidance of 7-9% organic license revenue growth and an EBITDA level of 24% for 2008 results, excluding acquisitions and net of FX impact. This is subject to no material changes in the economic climate. 

 

Key financial figures

 

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2006

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2007

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Change

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2007

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Change

(in € thousands)

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excl. Longview

3)

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License revenue

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71,351

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77,398

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8.5%

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77,067

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8.0%

Maintenance revenue

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123,780

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125,214

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1.2%

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124,551

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0.6%

Service revenue

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46,934

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49,497

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5.5%

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48,304

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2.9%

Total

revenue

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242,065

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252,109

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4.1%

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249,922

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3.2%

EBITDA

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52,583

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57,036

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8.5%

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57,038

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8.5%

EBITDA margin (in %)

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21.7

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22.6

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0.9 pts

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22.6

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0.9 pts

EBIT

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45,909

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49,792

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8.5%

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50,161

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9.3%

EBIT margin (in %)

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19.0

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19.8

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0.8 pts

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20.1

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1.1 pts

Net income after tax

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34,390

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39,112

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13.7%

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39,313

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14.3%

Net income margin (in %)

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14.2

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15.5

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1.3 pts

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15.7%

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1.5 pts

Diluted EPS* (in €)

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1.42

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1.59

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12.0%

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1.60

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12.7%

Diluted Cash EPS* (in €)

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1.73

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2.02

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16.8%

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2.03

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17.3%

*Based on average diluted number of shares outstanding (2007: 24.03 million; 2006: 24.03 million)

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Rajesh Patel

, CEO Exact Holding N.V.:

“Since 2006 Exact has been executing a clear and concise strategic plan in order to drive profitable growth. The fruits of diligent execution have been seen over the last 24 months and especially in 2007.  In terms of organic growth we are on track and in 2007 we have executed our largest acquisition in history. I am very satisfied with the results and our execution, which demonstrate that we have made the right choices and decisions.”

 

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About Exact Software

Established in 1984, Exact Software is one of the world’s leading providers of business software solutions. Its integrated solutions comprise traditional enterprise resource planning (ERP) as well as related software solutions such as human resource management (HRM), customer relationship management (CRM), corporate performance management (CPM), project management and electronic workflow.

Exact is headquartered in Delft, the Netherlands and has offices in Europe, the Middle East, North, Central and South America, Asia, Australia and Africa. With around 2750 employees, subsidiaries in more than 40 countries, and solutions available in 40 languages, Exact currently serves customers in more than 125 countries.

Revenues in 2007 amounted to € 252.1 million. Exact Holding N.V. has been listed on Euronext Amsterdam since June 1999.

 

For further information:

Media Relations

Werner van Bastelaar

Edelman

Tel: +31 (0) 20 3010980

e-mail:Werner.vanBastelaar@edelman.com

Investor Relations

Leon Albers

Tel: +31 (0)15 7501219

e-mail:

ir@exactsoftware.com

Exact Holding N.V.

Poortweg 6

2612 PA

Delft

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News Source : Exact Software Announces Full-Year Results for 2007