Hubwoo Announces Q2 2011 Revenues

PARIS, July 28, 2011 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading global provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for Q2 2011, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Greg Mark, Hubwoo CEO commented: "We are pleased at the Company's continued positive momentum on EBITDA profitability and the solid and scalable cost base that has been put in place.  While H1 revenue growth was modest, the company operates from a solid foundation. With legacy contracts renegotiated to market levels, a reorganized European sales force, and the SAP and Crossgate channels now in place, the Company is now in a good position to increase order intake as well as profitability."

1. Revenues:

H1 2011 revenues are globally stable year on year (+1%), with relatively flat SaaS revenues over the period (-1%), mainly as a consequence of re-pricing of legacy European contracts down to market levels during 2010, as communicated in previous financial releases. The services component of revenue was up 6%, reflecting a relatively dynamic activity on implementations of new customers and evolutions for existing ones.    

Q2 2011 revenues show a marginal decline compared to Q2 2010 (-3%), with the services component down 8% for the quarter. This single quarter trend on services revenue reflects the relatively slow level of new order intake in Q1 and Q2, in both Europe and the Americas.

Sales activity in general was slower than expected in Q2 due to customer contract delays, some of which have already been realized as of the time of this release, and due to the restructuring of the sales force in Europe for future growth.

2. General description of the financial situation

EBITDA and EBIT

Unaudited H1 estimates on EBITDA confirm again a positive figure and the trend of a solid and scalable cost base. The first estimates show a strong improvement against H1 of 2010 in EBITDA profitability. The  H1 financial statements will be published on August 31, 2011.

Unaudited estimates of EBIT, excluding restructuring and exceptional costs, show a significant improvement against H1 2010 and will approach profitability, confirming the H2 2010 trend.

3. Major Q2 2011 events

New Buyer Contracts

Significant new contracts during the quarter included 50 Hertz Transmission, Bombardier, Consol Energy, Ecopetrol, Kerry, Lanxess, Rolls Royce, Wilo, and WR Grace.

Crossgate and SAP Network Alliance

The alliance which was announced in Q1 has progressed into a commercialized joint solution that is certified as a solution extension by SAP AG and is now operating as a global sales collaboration.  The sales pipeline that was built in Q2 is promising, with orders from this new sales channel already realized as of the date of this release.  

About Hubwoo (www.hubwoo.com)

Hubwoo is the world's leading provider of on-demand procurement solutions for the SAP community.  The Company manages a Business Network with over 200,000 active suppliers and over 150 major international corporations as buyer customers of which 50+ are in the Global 1000.  Significant customers include Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Michelin, Henkel, Statoil, The Hershey Company, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, and The Dow Chemical Company.  

Hubwoo has major operations in France, multiple U.S. centers, Germany, the U.K., Philippines, Belgium, and Eastern Europe.

Listed in Compartment C on the Euronext Paris Eurolist.

ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP

SOURCE Hubwoo

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