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Axway Announces Solid Annual Results for 2016Regulatory News: Axway (Euronext: AXW.PA.) - Axway Software's Board of Directors, convened on 22 February, under the chairmanship of Pierre Pasquier, reviewed the consolidated financial statements for the year ended 31 December 2016. The 2016 performance confirmed the successful transition of Axway to its new position in supporting digital transformation. Revenue which crossed the 300M€ milestone in revenue, is accompanied by increased profitability and a highly satisfactory financial position. The company publishes today, 22 February 2017 concerning the acquisition of Syncplicity, an American company based in Silicon Valley and recognized for its EFSS (Enterprise File Sharing and Synchronization) technologies. This acquisition will further enhance the Amplify platform.
2016 Overview Within the context of its medium-term transformation plan, 2016 was a year of transition marked by the successful implementation of company strategy:
"2016 was the first full year of implementing our new strategy to support our customers with their digital transformation, through projects supported by API technologies, new services and cloud options. With Syncplicity's EFSS technologies we are confirming and renewing the historic data exchange offering now focused on Human-to-Human end-users". Jean-Marc Lazzari, Chief Executive Officer of Axway. 2016 was a solid year for Axway in terms of growth in revenue and improved margin: €301.1 million of revenue representing total growth of 5.8% and 16.9% profit on operating activities. The last quarter of the year was less dynamic than the first nine months, reflecting a shift in market demand toward value proposals based on subscription contracts (cloud). Revenue by region (in €m)
(1) at constant exchange rates and scope of consolidation The United States represented €122.9 million (+6.0% in organic growth) and was Axway's largest market for the second year in a row. France, with €94.2m, made good the downturn observed over the first 9 months with revenue virtually unchanged throughout the financial year. The Rest of Europe continued its sound development with organic growth of 7.4%, while the Asia/Pacific zone continued to report sustained growth of 10.7%. Revenue by activity (in €m)
(1) at constant exchange rates and scope of consolidation Licences, with revenue of €81.3m representing organic growth of 1.8%, continued to return positive performance while for the first year Axway saw increased market demand for cloud proposals concerning new contracts. Maintenance operations have been growing steadily for several years now. Service operations showed genuine momentum (+6.7% organic growth, 15.7% total growth), driven, in particular, by the development of cloud offerings. Cloud Activity, built into the Services line, speed up with a growth of +26.6% in recognized revenue. Financial position As at 31 December 2016, Axway's financial position was extremely solid with cash and cash equivalents amounting to €51.7 million, bank debt of €35.5 million and shareholders' equity of €374.8 million. As at 31 December 2016, net cash and cash equivalents was €16.3 million, enabling the Group to achieve financial ratios that comfortably meet the values required by banking covenants. The level of profit on operating activities (16.9% in 2016) was up in comparison with 2015, the consequence of a fine balance between commercial investments, R&D and G&A in relation to revenue. This reflects Axway's strong business model and provides the means to engage the investments needed for the company's development project. Net profit as at 31 December 2016 came to €31.5 million (10.5% of net margin). The audit process on the annual consolidated financial statements is currently being finalized. Workforce As at 31 December 2016, Axway employed 1,930 people (607 in France and 1,323 in other countries), up by 46 employees compared with 31 December 2015. Cash dividend Axway's Board of Directors intend, at the next General Shareholders' Meeting, to propose the distribution of a dividend of €0.40 per share in respect of the 2016 fiscal year. Strategy & Outlook 2016 allowed Axway to confirm its strategic options and its positioning in supporting digital transformation. The Axway teams have continued to develop digital offerings (API, Analytics and Mobile) by integrating new customer experience models renewed by the digital economy. The launch of the AMPLIFY digital platform represents a major investment for Axway, one that will enable it to stand out in the coming years. The acquisition of Syncplicity will help build loyalty and retention of all customers using MFT solutions, providing them with renewed solutions focusing on end-users and complementing the technologies of the AMPLIFY Digital engagement platform. After 2016, a year of transition boosted by a renewed offering and a stronger system, Axway is confirming its transformation and innovation strategy. This was achieved by maintaining operating margins and by prioritizing development in the USA, in addition to maintaining the level of operations in France. Revenue by region and by quarter (in €m)
Revenue by activity and by quarter (in €m)
Financial Calendar 2017
Notes on the financial tables The main accounting methods used by the Group are described in the notes to the annual financial statements of the Registration Document. Glossary Revenue: Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year. Organic growth of revenue: Growth of operations between revenue for the period and the reprocessed revenue data for the same period of the preceding fiscal year. Profit on operating activities: This indicator, such as defined in the Registration Document, corresponds to profit from the reprocessed counting operations data of the charge pertaining to the cost of services rendered by the beneficiaries of stock options and of restricted shares and of the provisions to amortisation of the affected intangible assets. Profit from recurring operations: This indicator corresponds to the operating profit prior to taking into account other operating income and expenses which correspond to unusual, abnormal, infrequent, non-predictive operating income and expenses, and of a particularly significant amount, presented in a distinct manner in order to facilitate understanding of the performance connected to current operations. Disclaimer The forecasts in this document are contingent upon risks and uncertainties as to the Group's future growth and profitability, in particular in cases of acquisitions. Readers are reminded that license agreements, which often represent investments for our clients, are more significant in the second half of the year and may therefore have a more or less favourable impact on full-year performance. Readers are also reminded that potential acquisitions could have an impact on the financial data provided above. The outcome of events or actual results may differ from those described in this document as a result of various risks and uncertainties set out in the 2015 Registration Document submitted to the Autorité des Marchés Financiers on 24 April 2016 under number D. 16-0393. The distribution of this press release in certain countries may be subject to laws and regulations in force. Natural persons present in such countries and those in which this press release is disseminated, published, or distributed should obtain information about such restrictions and comply with them. About Axway Axway (Euronext: AXW.PA) is a catalyst for transformation. With Axway AMPLIFY™, our cloud-enabled data integration and engagement platform, leading brands better anticipate, adapt and scale to meet ever changing customer expectations. Our unified, API-first approach connects data from anywhere, fuels millions of apps and delivers real-time analytics to build customer experience networks. From idea to execution, we help make the future possible for more than 11,000 organizations in 100 countries. Learn more about Axway by visiting www.investors.axway.com or via the Axway IR mobile application available at Apple Store & Android.
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