After an excellent fourth quarter, Axway closes 2012 with total growth of 3.3% (organic growth of -1

After an excellent fourth quarter, Axway closes 2012 with total growth of 3.3% (organic growth of-1.6%) and net profit up 15%

PARIS--(BUSINESS WIRE)-- Regulatory News:

Axway Software's (Paris:AXW) Board of Directors approved the financial statements for fiscal year 2012 at its meeting of 19th of February, chaired by Pierre Pasquier. The Group recorded an excellent performance in Q4 2012 with organic growth of +10.1% compared with Q4 2011, an upward correction to the trend for the first nine months of the year. In FY 2012:

  • Revenue was up 3.3% to €224.3 million (-1.6% organic growth);
  • Profit on operating activities amounted to €35 million, representing a margin of 15.6% (compared with €35.3 million and 16.3% in 2011);
  • Net profit was €24.7 million, giving a margin of 11.0% (compared with €21.5 million and 9.9% in 2011)
  FY 2012 FY 2011 FY 2010
 (in M€) ( % Rev)(in M€) ( % Rev)(in M€) ( % Rev)
Key income statement items         
Revenue224.3  217.2  208.4  
Organic growth-1.6%  5.7%  11.8%  
Profit on operating activities35.0 15.6%35.3 16.3%31.1 14.9%
Profit from recurring operations31.7 14.1%33.3 15.3%29.1 14.0%
Other income and expense-2.9  -4.0  -3.6  
Net financial costs and currency impact-0.1  -2.7  -2.0  
Income Taxes-4.0  -5.2  3.0  
Net profit 24.7 11.0%


21.5 9.9%26.6 12.8%
(in €) (in €) (in €) 
Basic net earnings per share 1.22  1.20  1.67  

*Using the same number of shares as in 2012 as the basis of calculation for 2011, earnings per share would be €1.06, yielding growth of 15% in EPS 2011-2012.

The Group continued its transformation efforts throughout the year while at the same time turning around its economic position in the fourth quarter. The highlights of 2012 included:

  • Preparation of a major evolution in its software portfolio;
  • Acquisition of Vordel;
  • Strengthened managerial structures;
  • Investments maintained to expand its business model (Cloud and indirect business).

Comments on the business

By type of business (in M€)

FY 2012 2012 2011 Published 2011 Pro Forma Total Growth Organic Growth1
Services 54.7 54.4 55.7 0.4% -1.8%

(1) at constant exchange rates and scope of consolidation.

Demand was particularly depressed for most of 2012, driving down organic growth in Licences by -15%, compared with 2011. However, this trend was reversed in the fourth quarter leading to an Organic growth for the Licences of a strong +14.1% vs. Q4 2011.

The Group recorded robust growth in its Maintenance business in fiscal year 2012 (over €98 million, up 11.4%), reflecting Axway's firm commitment to building customer loyalty across the board and increasing the average effective maintenance rate.

Services declined slightly for the year as a whole as a direct consequence of the downturn in licences, but rebounded 2.6% in Q4 2012. Services should benefit from new momentum generated by the strong performance in Licenses in the last quarter.

Breakdown by region (in M€)

FY 2012 2012 2011 Published 2011 Pro Forma Total Growth Organic Growth1
Rest of Europe55.653.056.54.9%-1.6%
Asia/Pacific 6.8 5.5 6.1 24.2% 10.3%

(1) at constant exchange rates and scope of consolidation

Growth in Axway's revenue in FY 2012 was contrasted, reflecting differing regional realities. In the United States, revenue increased throughout the year, with 25% growth in the fourth quarter. This demonstrates the resilience of our portfolios in terms of both quantity and quality. The economic environment in Europe was more challenging in 2012 (especially in France), reflected in the slight decline in Axway's business in this region. Nonetheless, the fourth quarter of 2012 saw the Group finalise a number of contracts (on hold since the start of the year), generating organic growth of +1.4% year-on-years. This Q4 2012 rebound was particularly marked in France (+9.8% compared with Q4 2011).

Financial position

Axway had very robust financials position at 31 December 2012, with a net debt of €6,7 million and equity totalling €233,9 million.

The Vordel acquisition was financed through a part of the bank credit line and leaves Axway with a very reasonable debt level (€40 million) at 31 December 2012.

Although affected by the overall fall in licence revenues, the operating profit margin was 15.6% (vs. 16.3% in 2011). This solid result reflects the robustness of the Axway business model, while maintaining the investments required to maintain its competitive edge - which remains intact and is a key growth driver. Net profit at 31 December 2012 was €24.7 million (11% of net margin), up from €21.5 million in 2011(9.9% of net margin).


Axway employed 1,774 people at 31 December 2012 (629 in France and 1,145 in other countries), an increase of 19 employees from the previous year's headcount.

Throughout fiscal year 2012, Axway beefed up its management teams through a drive to recruit top managers. These strategic hires constitute a major advantage for Axway as it pursues its development plan.

Cash dividend

The Board of Directors of Axway will propose, at the next General Shareholders Assembly, the distribution of €0.35 dividend per share for the financial year 2012, totalling €7,112,363.30.


Axway reaffirms that the implementation of infrastructures to govern data flows remains critical to ensuring agile and efficient information systems. Axway confirms the relevance of its approach of providing leading technology solutions to large enterprises and their ecosystem. The company has maintained investment levels to prepare for a major development in its product line, and finalised the acquisition of Vordel, a deal that delivers additional growth drivers (governance of Cloud and mobile data flows).

To reach its market leadership objective, Axway deploys its development strategies based on the following structural priorities:

  • Reinforce its 'specialist' positioning, focusing exclusively on 'governance of data flows';
  • Continually improve its technological platform to remain the leading infrastructure for large enterprises in the long term;
  • Intensify the vertical approach (by economic sector) to reinforce the focus on key accounts.


During 2012, the Group demonstrated the strong resilience of its model and continued to commit the investments required for the successful completion of its medium term goal. 2012 was a transformative year on many fronts.

Nonetheless, uncertainty continues to cloud the economic outlook in the main geographical markets (in France for example) and verticals (financial services especially). Demand remains crucial to achieving growth, particularly in the Licences segment. Confident in its medium-term outlook, the Group must however take the particular seasonal component of its business into account, where the fourth quarter plays a critical role in the company's overall full-year performance.

Accordingly, Axway's target for FY 2013 is to deliver positive organic growth and to maintain its operating margin.

Breakdown of revenue by quarter - Breakdown by region


1st Quarter




2011 Published


2011 Pro Forma


Total Growth


Organic Growth1

Rest of Europe12.711.611.89.6%8.0%
Asia/Pacific 1.2 1.2 1.3 5.7% -4.4%
2nd Quarter20122011 Published2011 Pro FormaTotal GrowthOrganic Growth1
Rest of Europe12.411.712.25.6%1.2%
Asia/Pacific 1.4 1.4 1.6 2.9% -10.1%
3rd Quarter20122011 Published2011 Pro FormaTotal GrowthOrganic Growth1
Rest of Europe11.611.912.0-2.5%-3.0%
Asia/Pacific 1.6 1.3 1.5 23.1% 4.0%
4th Quarter20122011 Published2011 Pro Forma Total GrowthOrganic Growth1
Rest of Europe18.917.920.65.6%-8.3%
Asia/Pacific 2.5 1.6 1.7 57.8% 45.5%

(1) at constant exchange rates and scope of consolidation.

Breakdown of revenue by quarter - By type of business (in M€)

1st Quarter 2012 2011 Published 2011 Pro Forma Total


 Organic Growth1
Services 13.4 13.3 13.4 0.2% -0.1%
2nd Quarter20122011 Published2011 Pro FormaTotal


Organic Growth1
Services 13.3 14.1 14.4 -5.8% -7.8%
3rd Quarter20122011 Published2011 Pro FormaTotal


Organic Growth1
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