Click here to close now.




















Welcome!

@CloudExpo Authors: Liz McMillan, Pat Romanski, Mike Kavis, Don MacVittie, Elizabeth White

News Feed Item

Q3 2012 Axway: Decreased Business with Negative Organic Growth of -6.6% for the First Nine Months of the Year.

Regulatory News:

Axway (Paris:AXW) announces revenues of €50.7 million in Q3 2012. The Group is faced with falling demand for the fourth quarter in a row, with difficulties expected to continue in the economy as a whole, in Europe and in France in particular.

Business activities

3rd quarter by activity                                    
€m       2012       2011

Reported

      2011

Pro Forma

      Total Growth       Organic Growth1
                             
Licences 12.6 19.7 21.0 -35.9% -39.9%
Maintenance 24.9 20.8 22.2 19.9% 12.4%
Services       13.2       13.1       13.4       0.4%       -1.7%
Axway 50.7 53.6 56.6 -5.4% -10.3%
(1) At comparable exchange rates and scope of consolidation

By type of activity, licences (35% of revenue on a rolling 4 quarter basis) contracted sharply (-39.9%) compared with Q3 2011, which was particularly robust, especially in the United States (organic growth of almost 21%). Maintenance income (more than 39% of revenue on a rolling 4 quarter basis) grew strongly in line with expectations. Services dropped slightly, especially in the US, as a consequence of the downturn in licences for several quarters.

3rd quarter by region                                    
€m       2012       2011

Reported

      2011

Pro Forma

      Total
Growth
      Organic Growth1
                             
Europe 28.3 29.9 30.0 -5.5% -5.7%
Americas 20.8 22.4 25.1 -6.8% -16.8%
Asia/Pacific       1.6       1.3       1.5       23.1%       4.0%
Axway 50.7 53.6 56.6 -5.4% -10.3%
(1) At comparable exchange rates and scope of consolidation

By region, the contraction occurred across all regions and was accentuated by an unfavourable basis for comparison in the United States, where several agreements had been signed in Q3 2011(in particular with the federal government). Business was also down significantly in France, reflecting the postponement of infrastructure projects for a year now. Economic conditions remain difficult in the rest of Europe and especially in the south, but client projects remain active leading the group to adopt an improved outlook for the year-end.

Year to date 9 months by activity                            
€m       Year to date 2012       Year to date 2011 Reported       Year to date 2011 Pro forma       Total

growth

      Organic Growth1
                             
Licences 37.2 51.6 54.0 -27.9% -31.1%
Maintenance 72.1 61.5 64.4 17.2% 11.9%
Services       39.8       40.5       41.2       -1.7%       -3.4%
149.1 153.6 159.6 -2.9% -6.6%
Year to date 9 months by region                        
€m Year to date 2012 Year to date 2011 Reported Year to date 2011 Pro forma Total

Growth

Organic Growth1
                             
Europe 85.9 93.3 94.1 -7.9% -8.7%
Americas 58.9 56.4 61.1 4.4% -3.6%
Asia/Pacific       4.3       3.9       4.4       10.3%       -2.3%
149.1 153.6 159.6 -2.9% -6.6%
(1) At comparable exchange rates and scope of consolidation

Year to date for the first nine months of 2012, Axway is withstanding a generally very depressed economic environment, reflected in the decline in organic growth (-6.6%). As companies put investment decisions on hold, orders have fallen with a resulting decline in licence revenue. However, the steady rise in maintenance activities (+11.9%) is very encouraging and manifests the Group's proactive approach to building customer loyalty.

Axway enjoys a very robust financial position with respect to both banking covenants and debt. At end-September 2012, the company had a net cash position slightly in excess of €40 million.

Outlook

Faced with a significant fall-off in demand for the past year, and the continuing uncertainty in the economic environment to the end of the year, Axway no longer maintains its initial performance objectives of positive organic growth and at least maintaining its operating margin for full-year 2012. Cost-cutting measures have been implemented for a number of months to mitigate the impact of falling demand on the company's margins while safeguarding its competitive positioning. Moreover, it is important to remember the quantitative significance of the fourth quarter in assessing the Group's performance for the year as a whole. While the prospects of achieving a good Q4 2012 are real, success will depend on a recovery in the quarterly deal closings.

Financial calendar
Tuesday, 19 February 2013: publication of annual results
Wednesday, 20 February 2013: SFAF analysts' meeting, Paris

About Axway

Axway (NYSE Euronext: AXW.PA), the Business Interaction Networks company, is a software company with more than 11,000 customers in 100 countries. For more than a decade, Axway has provided leading organizations around the world with proven technology solutions that exchange, integrate, manage, secure and govern the business-critical interactions that accelerate enterprise performance.

Our award-winning solutions span business-to-business integration, managed file transfer, business operations monitoring, process management, and email and identity security – offered on premise or on demand (Cloud), together with professional and managed services.

Axway is registered in France with headquarters in the United States and offices around the globe.

More information is available at: http://www.axway.com/

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...