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CDC bucks recent trends: posts significant growth
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18/08/2009
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Manufacturing business software developer CDC Software, which owns Ross and MVI (the latter now CDC Factory), is bucking the trend and showing significant growth. The organisation has posted 21% and 45% increases in adjusted EBITDA for the second quarter and first six months of 2009 compared to same periods in 2008.
For the '09 second quarter revenue and adjusted EBITDA were $50.6 million and $13.7 million, respectively.
CDC Software CEO Peter Yip reports that the company also increased its operating cash flow in the same period, to $15.2 million, compared to $3.7 million last year – a 311% improvement.
His view of the reasons for this significant improvement: "Over the past several quarters, we have taken proactive steps to improve operational efficiencies and leverage our offshore product engineering centres in India and China. In addition, in the second quarter of 2009, we saw a 10% increase in license sales as compared to the first quarter of 2009."
Yip believes CDC has positioned itself for growth both through acquisitions and organically, given its scalable infrastructure. He says the company has developed a pipeline of acquisition targets, which it "may pursue in the next several quarters".
In the meantime, Yip says CDC expects to complete its previously-announced acquisition of supply chain event management solutions developer WKD (Categoric) during the third quarter of 2009.
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Author
Brian Tinham
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