Maconomy continues high licence growth in 2008

Maconomy concluded Q1 2008 with a 20% growth rate in the essential licence revenue compared to the same quarter last year. Management retains its expectations for 2008 with DKK 260 million in revenue and a profit before depreciation (EBITDA) of DKK 25 million.

The ERP company Maconomy today presented a quarterly report with revenue of DKK 54.0 million in the first quarter, up 8% from the first quarter of 2007. EBITDA in the first quarter of 2008 was a negative DKK 5.3 million. Adjusted for non-recurring costs of DKK 3.0 million, the result was an improvement of DKK 1 million compared to the first quarter of 2007.

Once again revenue growth was fuelled by strong growth in software licence sales, which rose by no less than 20% to DKK 14.9 million. Accordingly, Management retains its expectations for 2008 with revenue of around DKK 260 million, licence sales of DKK 90 million and a profit before depreciation (EBITDA) of DKK 25 million.

“With another satisfactory quarter in the books we continue to strengthen our business on growth as well as operational profitability,” says CEO Hugo Dorph, Maconomy. “We are fundamentally competitive when dealing with mid-sized knowledge-intensive organisations that manage their activities as projects.”

Maconomy stayed on its positive course as it continued its long streak of quarters with significant licence growth compared to the same quarter the year before. Licence revenue is the key driver for Maconomy’s continued growth as it is important that the company’s fixed software development costs are distributed on as many licences as possible. Additionally, licence revenue helps build the pipeline for consulting services as well as maintenance and support subscriptions several years down the road.

Maconomy managed to land deals with several large customers during the first quarter, including Deltares from Holland and Opera Software from Norway. Maconomy’s focus on a wider customer segment has already generated new customers within new subsegments and the aggregate number of users in March 2008 was nearly 108,000 compared to 93,000 users in March 2007. This growth enables Maconomy to implement further improvements of core functionality, usability and open standards planned in future versions of Maconomy’s ERP solution.

“Many of our recent wins back up the strategy we announced in December 2007 of expanding our focus beyond our core customer segments to the wider "Professional Services Organisations" segment. Continued success with this strategy will make us less dependent on the more cyclical customer segments of consulting and marketing communications, but even in those segments we see continued demand,” says Hugo Dorph.

Further information:

Hugo Dorph, CEO
(+45) 35 27 24 24

Ulrik Christensen, CFO
(+45) 35 27 23 67

pr@maconomy.com

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