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SUBS SAP PRODWARE REVS Featured

ProwdwareThe growth in subscription revenue dented revenue for Prodware, a Sage and Dynamics reseller based in France, by 20.7 percent for the fourth quarter ended December 31. In issuing its financial reports this week, the company said the period's decline was 16.7 percent on a like-for-like basis.

For the year, the fall off was much less severe with revenue for 2017 about $206.7 million, off 4.6 percent from 2016, 3.6 percent on a like- for-like basis. The company will report earnings later. Prodware expects with the launch of new SaaS products it will generate incremental revenue starting in the second quarter. Besides the acceleration in subscription revenue in the final quarter of 2017, some significant projects were carried over to the first half of 2018. Service revenue also suffered because of the difficulty in recruiting production teams in a competitive job market. SaaS revenue for the year grew by 24.3 percent to roughly $28.4 million in the most recently complete year. That is 13.7 percent of total sales, compared to 10.5 percent in 2016. Revenue in French-speaking countries was approximately $94.4 million; about $112.3 million in other areas.

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