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UNIT4 results show impact of Cloud

Posted by admin on Wed, 18/01/2012 - 12:53
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A move to the Software as a Service (Saas) model is putting pressure on profits at software company UNIT4, which warned that profits for the year would be down despite a record month in December.
 
Additional investments in the FinancialForce SaaS business unit, and lower profits on SaaS/subscription sales contributed to the drop, the company warned. It also blamed the impact of reorganisation costs.  
 
Despite a record month in December, Unit4 has warned that Q4 2011 profits will be down compared to the same period in the previous year.
 
Preliminary results show that revenue for the full year will be around Euro 455m, compared with Euro 421.8m in 2010. 
 
Although SaaS/subscription revenue grew around 35% year on year, Unit4 said the move to SaaS is putting short-term pressure on profits, which was particularly noticeable on sales made during the last months of the year.

However, revenue for the quarter was up by around 3% to Euro 127m with full year revenues expected to hit Euro 455m, compared with Euro 421.8m in 2010. 

Full financial results for the quarter and the year are due on February 21.