Hubwoo Announces Q3 2011 Revenues

PARIS, Oct. 27, 2011 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading global provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for Q3 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 Q3 acceleration towards profitability objectives.  Our record Q3 EBITDA as a proportion of revenues continues to reflect the solid cost foundation achieved through rationalization projects.  To now capitalize on this scalable cost base, we are investing in additional top line revenue growth initiatives.  These initiatives include a focus on direct revenue as well as channel revenue, predominantly from the SAP channel."

1.  Revenues:

Q3 2011 revenues showed solid quarter over quarter improvement compared to Q2 2011 (+4%), with the comparison to Q3 2010 showing a decline in total revenues (-4%), although the Services component progressed by 4% as compared to the same quarter last year.

SaaS(**), the recurring component of revenue, was EUR 6.8M.  This represented 74% of the total revenue for the quarter.

Sales activity on both SaaS and Services slowed during the quarter in both the Americas and Europe, mainly due to prospects postponing signature on several key projects.

(**) SaaS is a model of delivering technology where a software solution is hosted (cloud computing) as a service for its customers.  Clients do not buy the technology but pay a subscription fee to use it.

2.  General description of the financial situation

EBITDA and EBIT

Unaudited estimates  show that Hubwoo experienced strong growth in EBITDA, projected at EUR 1.4M for the Quarter (EUR 2.1M in H1 2011).  As a percentage of revenue, EBITDA for the quarter was 15%, which is a milestone indicator in line with that of best in class companies in the SaaS industry.

EBIT was positive at EUR 0.2M, after impact of extraordinary costs of EUR 0.3M.

3.  Major Q3 2011 events

New Buyer Contracts

Significant new contracts during the quarter included Akzo Nobel, Birdseye, MetPolice, and Rolls Royce.

Crossgate and SAP Network Alliance

The alliance which was announced in Q1 is now operating as a global collaboration across solution management, development, demand generation, marketing, and sales.  A promising sales pipeline has been built, and the first revenue from this new sales channel was recognized in Q3.  

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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