Sales Up 8 Percent in the Third Quarter for SSA Global
June 12, 2006 Timothy Prickett Morgan
Conglomerate ERP software supplier SSA Global, soon to be a part of the larger Infor ERP conglomerate if its acquisition is not blocked by a lawsuit that was launched two weeks ago, has announced its financial results for its fiscal third quarter ended April 30.
In the quarter, SSA reported licenses revenues of $62.3 million, up 19 percent from last year and increasing to 32 percent of total sales for the company, compared to 29 percent in the year ago quarter. Total sales increased by 8 percent to $194.6 million, but net income fell by exactly half to $4.6 million. SSA said that it inked 1,361 deals in the quarter, including 57 deals with new customers that accounted for 9 percent (about $5.6 million) of its license revenues.
SSA had $140.6 million in cash in the bank as the quarter ended, and did not host a conference call, which was a bit odd for a public company, and cited the impending acquisition by Infor as the reason for not holding the call. The company’s stock price has been unaffected by the lawsuit, which, oddly enough, contended that the numbers for the third quarter would have caused SSA’s share price to rise and, therefore, Infor to pay more for SSA. Ironically, the lawsuit itself may have now be having the effect of holding down SSA’s share price (but the decrease in profits might be a bigger factor). There is just no way to tell what investors are thinking.