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UNIT4 INCOME DROPS, REVS RISE Featured

Edwin van Leeuwen, Unit4A variety of factors pushed down EBITDA and net income for Unit4 for fiscal 2013. The Netherlands-based software vendor said this week that the valuation of a tax asset in 2012 and cost related to Project Unique were among factors that resulted in net income of $20.3 million for the most recently ended year, down 37 percent from 2012. I have not found a description of Product Unique yet. Meanwhile, total revenue hit $672.3 million, a rise of 4.4 percent from the prior year.

The company reported the change in software buying patterns that is affecting the industry. Unit4, which markets the Coda and Agresso lines, said SaaS and subscription revenue in 2013 were 42.3-percent high than the year before and revenue from those streams now exceeds sales of software licenses. CEO Edwin van Leeuwen said while the rapid growth in SaaS and subscription put some pressure on margins, Unit4 countered that through cost controls and greater efficiency. He also noted license revenue fell less than expected. Meanwhile, the annual run rate for FinancialForce.com, jointly owned by Unit4 and Salesforce.com, rose by 85 percent to $30.6 million. We won't see a report from Unit4 for 2014, at least not under the current ownership as the company is being acquired by private equity group Advent International via a cash tender offer.

 

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