Axway: 2013 First-Half Revenue Growth in Line with Expectations with Total Growth of 8.1%. Improved

Axway: 2013 First-Half Revenue Growth in Line with Expectations with Total Growth of 8.1%. Improved Margins, with Profit from Operating Activities of 6.7% Compared with 5.6% in the First Half of 2012

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

The Board of Directors of Axway Software (Paris:AXW), under the chairmanship of Pierre Pasquier, closed the financial statements for the first six months of 2013:

  • First-half revenue amounted to €106.4 million, with organic growth of 4.8%;
  • Profit from recurring operations was €4.6 million, representing a margin of 4.3% (compared with 4.0% in the first half of 2012);
  • Net profit totalled €9.8 million, representing a margin of 9.2% (compared with 2.6% in the first half of 2012). This net profit includes exceptional operations recorded in the first half of 2013.
  S1 2013  S1 2012  FY 2012
 (in M€) (% Rev)(in M€) (% Rev)(in M€) (% Rev)
Key income statement items         
Revenue106.4  98.4  224.3  
Organic growth4.8%  -4.5%  -1.6%  
Profit on operating activities7.1 6.7%5.5 5.6%35.0 15.6%
Profit from recurring operations4.6 4.3%3.9 4.0%31.7 14.1%
Other income and expense-5.2  -0.9  -2.9  
Net financial costs and currency impact-0.5  -0.5  -0.1  
Income Taxes10.9  0.0  -4.0  
Net profit 9.8 9.2%  2.6 2.6%  24.7 11.0%
Basic net earnings per share (in €) 0.48  0.13  1.22  

Comments on activity

Revenue by region

First Quarter 2013 2012 Published 2012 Pro Forma Total Growth Organic Growth1
Rest of Europe12.312.713.6-3.5%-9.2%
Asia/Pacific 1.6 1.2 1.2 27.1% 27.1%
Second Quarter20132012 Published2012 Pro FormaTotal GrowthOrganic Growth1
Rest of Europe14.412.412.916.3%12.2%
Asia/Pacific 1.7 1.4 1.5 18.6% 10.0%
First Semester20132012 Published2012 Pro FormaTotal GrowthOrganic Growth1
Rest of Europe26.725.126.46.3%1.2%
Asia/Pacific 3.2 2.6 2.8 22.6% 17.7%

(1) At constant exchange rates and scope of consolidation

Axway's 2013 first-half revenue growth reflects:

  • confirmation of the recovery in activity in France initiated in the fourth quarter of 2012;
  • the momentum of the North American market, which remained buoyant despite a disappointing second quarter in which a number of large contracts were deferred;
  • a global context that remained difficult in Europe (excluding France) and particularly in the United Kingdom and southern Europe.

Revenue by activity

First Quarter 2013 2012 Published 2012 Pro Forma Total


 Organic Growth1
Services 13.6 13.4 13.5 1.8% 0.9%
Second Quarter20132012 Published2012 Pro FormaTotal


Organic Growth1
Services 13.4 13.3 13.6 0.5% -1.8%
First Semester20132012 Published2012 Pro FormaTotal


Organic Growth1
Services 27.0 26.7 27.1 1.1% -0.4%

(1) At constant exchange rates and scope of consolidation

The strong momentum in maintenance helped offset the weaker performance in licences in the second quarter in which a number of contracts were deferred in the United States and Germany.

The commercial portfolio was strong, boosted by middleware market drivers (Convergence, Cloud, Mobile) which altered demand, favouring solutions based on API technology in particular. This situation permits reasonable optimism about licences' activity in the second half of the year.

Services remained stable compared with the first half of 2012. Production projects connected with contracts signed in the fourth quarter of 2012 are not yet active.

Significant 2013 first-half revenue growth (particularly maintenance revenue) and a controlled cost structure led to a rise in operating margins from the first half of 2012 (profit from operating activities of 6.7% compared with 5.6%; profit from recurring operations of 4.3% compared with 4.0%).

The operating profit includes a provision of 6.2 million US dollars (4.7 M€) taking into account an agreement in principle obtained recently from the US Department of Justice related to the GSA dispute negotiations. The finalization of a settlement agreement is expected to occur in the second semester of 2013. As a reminder, the activity of Tumbleweed (acquired in 2008 by the group) with the US government has been challenged since 2011 by a client, the General Services Administration (GSA). See also our Reference Document 2012 (Section 5.5.1 page 99).

The tax benefit for the first half of the year integrates the release of a portion of the valuation allowance on the U.S. deferred tax assets made possible by the increase of the profitability (realized and forecast) of this American subsidiary.

Financial position

At 30 June 2013, Axway's financial position was strong with cash position of €54 million and shareholders' equity of €238.7 million. Net cash position at 30 June 2013 was €11.5 million as a result of acquiring Vordel, in 2012, by partial use of the credit line.

The consolidated interim financial statements were subject to a limited audit. The limited audit report is in the process of being published.


At 30 June 2013, Axway's workforce numbered 1,798 employees (628 in France and 1,170 outside France), an increase of 24 people from 31 December 2012 (and of 33 people from 30 June 2012).


The restructuring of the infrastructure markets brought by the emergence of Cloud and mobile technologies, is beginning to produce solid opportunities. This is reflected in real demand for integration technologies, an area where Axway has made sizeable investments (acquisition of Vordel, launch of the Axway 5 Suite).


The Group's good first-half performance has enabled it to confirm its full year objectives for 2013: positive organic growth and stability of its operating margin 2013.

Financial calendar

Thursday 1 August 2013 at 14.30: Hotel Meurice, Paris: SFAF analysts meeting.

Monday 28 October 2013: Publication of 2013 third quarter revenue.

The company will publish its half-year financial report in French on 29 August 2013. This report will be available the Financial Documents tab and also on the AMF

About Axway

Axway (NYSE Euronext: AXW.PA), a market leader in governing the flow of data, is a global software and services company with more than 11,000 private and public sector customers in 100 countries. For more than a decade, Axway has empowered the world's top organisations with proven solutions that help manage business-critical interactions through the exchange of data flowing across the enterprise, B2B communities, the cloud and mobile devices. Our solutions are offered on premise and in the cloud, with a comprehensive range of services. They span business-to-business integration, MFT (Managed File Transfer), API and identity management, and email security.

Axway is registered in France with headquarters in the United States and has 22 subsidiaries in 17 countries around the world.

More information is available at:

Income Statement

(in thousands of euros) S1 2013  S1 2012  FY 2012
Revenue :
Total Product Revenue79,38771,694169,640
Total Revenue :106,36698,371224,320
Costs of sales:
Product Revenue10,5479,88620,653
Total Costs of sales :36,28135,30971,723
Gross profit:70,08563,062152,597
as a % of Revenue65.9%64.1%68.0%
Operating expenses :
Sales and marketing33,87031,37764,077
Research and development17,64216,24332,508
General and administrative11,4439,97921,046
Total operating expenses :62,95557,599117,631
Profit on operating activities7,1305,46334,966
as a % of Revenue6.7%5.6%15.6%
Stock option releated expenses(645)(564)(1,147)
Amortization of intangible assets(1,898)(992)(2,130)
Profit from recurring operations4,5873,90731,689
as a % of Revenue4.3%4.0%14.1%
Other income and expenses(5,177)(877)(2,940)
Operating profit(590)3,03028,750
Cost of net financial debt(395)(240)(51)
Other financial revenues and expenses(83)
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