SHANGHAI, ATLANTA SYDNEY - 28 June, 2010 - CDC Software Corporation (NASDAQ: CDCS), a global provider of hybrid enterprise software applications and services, today announced that, based on preliminary financial projections and estimates, the company expects application sales during the second quarter of 2010 to increase about 66 percent over the second quarter of 2009 compared to its previously announced estimated increase of 33 to 42 percent. CDC Software posted application sales of $7.8 million in the second quarter of 2009.
CDC Software has revised its estimates for second quarter application sales upward primarily due to continued increases in new logo sales for its on-premise solutions, strong cross-sales of the company's products and expanded cloud sales as a result of acquisitions, investments and organic growth.
Application sales is comprised of license revenue plus new total contract value. New Total Contract Value (NTCV) is the contract dollar amount for the duration of the contracts for all new software-as-a-service (SaaS) contracts secured, including rental, as well as all renewal received by end of the quarter.
"We are pleased to revise upward our estimates for second quarter 2010 application sales," said Bruce Cameron, president of CDC Software. "We have seen a significant increase in new logo organic sales in our Front Office and Plant Floor on-premise solutions, which is the best sales performance for these products since 2008. We expect that the second quarter of 2010 will be our best quarter ever in terms of cross-selling our products and we have also seen a 95 percent renewal rate in our SaaS solutions that includes a seven digit renewal and up-sell deal.
"As one of the leading hybrid cloud software companies that offers enterprise solutions with on-premise and cloud deployment options, we are very pleased that our new logo sales have improved over prior quarters and that we have seen organic growth in both on-premise as well as our cloud solution offerings. With this improved sales performance and our commitment to continuing the execution of our planned SaaS acquisitions, strategic investments and organic growth, we are on track to reaching our previously announced strategy of developing recurring revenue streams of close to 70 percent of total revenue over the next few years."