Hubwoo Announces Q4 2009 Results

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SAP based procurement solutions as-a-service

Greg Mark has done a tremendous job in structuring the Company’s strategy and finances for future growth. Therefore I have recommended to the Board who has approved unanimously to promote Greg as Chairman.

Paris (Vocus) January 29, 2010

Hubwoo (Euronext: HBW.NX), the world’s leading provider of on-demand procurement solutions for the SAP community, today announced financial information for Q4 2009, in accordance with the “Directive Transparence” financial disclosure requirements.

Greg Mark, Hubwoo CEO commented: “Despite a challenging global economic environment we are pleased to report 9% growth over 2008. Growth in Q4 over Q3 shows improved market conditions and a strong capacity to increase revenue in future quarters. In addition, our pipeline for both on-demand SRM 7.0 and SAP BusinessObjects Spend Performance Management and their associated implementation and data standardization and rationalization services remains strong thus validating the capital investments we made in both these solutions in 2009. Overall, we are pleased with the financial turnaround the company has made in 2009, as compared to 2008, and we look forward to 2010 with optimism.”

1. Revenue:

2009 revenue was €34.6 million, up 9% as compared to 2008. Growth was achieved from the recurring and highly predictable SaaS component of revenue, which was up 15% compared to 2008.

2009 services revenue was down 9% from 2008, mainly due to a lower ratio of Services to SaaS in recently signed contracts and, as mentioned in previous announcements, to the delay in signature of several large contracts in Q2 and Q3.

The supplier revenue component within SaaS, which is strongly dependent on the global economy and buyers’ level of spending in goods and services, was down 5% year over year, at €7.4 million.

Q4 2009 revenues are showing improvement compared to Q3 2009 (+5%), with the services component up 23%, showing improved market conditions for both new customer implementations as well as for incremental services to existing customers.    

2. General description of the financial situation

Cost and investment

Following continued efforts in cost optimisation, restructuring of specific areas of the business and reallocation of resources in those areas capable to deliver stronger growth and profitability, EBITDA of 2009 will show a dramatic improvement over 2008.
Q4 estimates on EBITDA confirm a positive trend and the achievement of a solid and stable cost base on which Hubwoo can build for future growth.

Following the successful capital increase in July, Hubwoo has completed an ambitious investment program (in the order of €800K over the quarter), encompassing network and infrastructure upgrades, the deployment of the new eAnalyze spend analysis solution, based on SAP BusinessObjectsTM Spend Performance Management, and the first phases of the SAP SRM 7.0 upgrade project.

On the financing side, Hubwoo has signed an additional significant leasing facility for future capital investments needs in 2010, that will be largely dedicated to scale its platform based on revenue growth expectations.

3. Major Q4 2009 events

Significant customer contracts with Unisys, Centre Hospitalier de Lens, Consol Energy, IBM, Britvic, Lloyds Partezis, and Centre Hospitalier de Valenciennes.

Milestone of 70,000 active suppliers on the Collaboration Hub, up over 75% from 2008.

Update to Board of Directors: Gregory A. Mark is appointed as Chairman of the Board, with Alain Andreoli as independent member of the Board. Alain Andreoli commented “Greg Mark has done a tremendous job in structuring the Company’s strategy and finances for future growth. Therefore I have recommended to the Board who has approved unanimously to promote Greg as Chairman.”

English version of the full press release
French version of the full press release

About Hubwoo (http://www.hubwoo.com)

Hubwoo the world’s leading provider of on-demand procurement solutions for the SAP community. The Company manages a business-to-business community with over 140 major international corporations as its customers (including 50 in the Global 1000) and over 70,000 active suppliers. Significant customers include Honeywell, Total, BASF, Evonik, EDF, Nokia, Michelin, Shell, Bayer, Henkel, Statoil, Hershey’s, Consol Energy, EcoPetrol, Carl Zeiss, Burton’s Foods, The Dow Chemical Company, ENI, and Graham Packaging. The Company has international offices in Europe, Americas and Asia and is a strategic partner of SAP and IBM.
Listed in Compartment C on the Euronext Paris Eurolist.
ISIN: FR0004052561, Euronext: HBW.NX, Google: HBW

Hubwoo Contacts
Rinus Strydom (SVP Marketing & Product Management)
Sergio Lovera (Chief Financial Officer)
Tel: +33 (0)1 53 25 55 00

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