SimCorp grows revenue 19.3% in Q1 2017 and wins a new client in North America
Summary
Q1 reported revenue was in accordance with early adoption of IFRS15 EUR 73.1m, an increase of 19.3% when compared with restated Q1 2016*, and an increase of 18.5% when measured in local currencies.
EBIT for the three-month period was EUR 10.2m, compared with EUR 7.5m in restated Q1 2016. Currency fluctuations impacted EBIT positively by EUR 0.8m during the quarter.
Net profit for Q1 2017 was EUR 7.5m compared with EUR 5.8m in restated Q1 2016.
At 31 March 2017, contracts equaling EUR 237m of the projected 2017 revenue had been secured compared with EUR 202m at the same time in 2016. The Group’s pipeline of potential license contracts supports the expected growth in revenue.
SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2017. Revenue growth measured in local currencies is still expected to be between 7% and 12%, and the expectation for EBIT margin measured in local currencies remains between 25% and 28%.
Klaus Holse, SimCorp CEO, comments: “The first quarter was a solid quarter for SimCorp. We are pleased to welcome a new client in the important North American market, and we are satisfied with our growing business with existing clients. Professional services are seeing substantial increases as the number of new implementations grows, and we continue to see clients successfully going live, which drives the significant growth in maintenance.”
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SimCorp’s Board of Directors today reviewed and approved the Group’s interim report for the three months ended 31 March 2017. Highlights of the report are:
Total order intake from new SimCorp Dimension licenses and add-on licenses for the first three months of the year was EUR 5.6m. This is EUR 5.3m lower than in the same period last year, which had an unusually strong order intake as a number of contracts were delayed from Q4 2015. At 31 March 2017, the order book amounted to EUR 12.8m, a decrease of EUR 3.2m when comparing with restated order book at 31 December 2016.
Income recognized from new licenses and add-on licenses was EUR 9.3m for the first three months, an increase of 27.9% compared with restated Q1 2016.
Sales of professional services continue to develop positively and grew 30.9% to EUR 27.9m when compared with the same period last year.
Maintenance income was EUR 34.4m, an increase of 9.7% from Q1 2016.
Total cost for the three months ending 31 March 2017, was EUR 63.0m, an increase of 17.0% compared with Q1 2016. The cost increase related primarily to building capacity for meeting the growth in business activities.
Cash flow from operating activities was EUR 25.6m compared with EUR 21.5m in Q1 2016.
SimCorp has chosen to make an early adoption of IFRS15 ‘Revenue from Contracts with Customers’ by recognizing the cumulative effect of EUR 20.9m as an opening balance increase to equity at 1 January 2017. Q1 and full year 2016 results have been restated to IFRS15 for illustrative purposes and to improve transparency. The early adoption of IFRS15 will reduce the financial impact of whether customers choose to acquire SimCorp’s Dimension on a perpetual license basis or on a subscription basis. In the eyes of the board of directors this reporting approach will provide an improved basis for assessing the ongoing performance of the company.
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Investor presentation
SimCorp’s Executive Management Board will present the report at a conference call today at 2.00 pm (CEST). Please use any of the following phone numbers to dial in to the conference call:
From Denmark: +45 3848 7513
From USA: +1646 254 3364
From other countries: +44(0)20 3427 1906
The pin code to access the call is 3587669.
At the end of the presentation there will be a Q&A session.
It will also be possible to follow the presentation via this link: http://edge.media-server.com/m/p/6ex69vk8.
The presentation will be available prior to the conference call 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)
Søren Strøm, Chief Financial Officer (Interim), SimCorp A/S (+45 3544 6853, +45 2019 3144)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)
Company Announcement no. 19/2017