PARIS--(BUSINESS WIRE)--
Regulatory News:
Axway (Paris:AXW) (Euronext: AXW.PA) will publish its first half accounts July 26, 2017 after the market close. A conference for the analysts will be held Thursday July 27, 2017 at 2:30 PM (new meeting time) at the Cloud Business Center (10 bis rue du 4 Septembre 75002 Paris France) and with a simultaneous webcast.
Note: Axway is currently in the process of finalizing the 2017 first half accounts and the auditors limited review procedures to be performed are not complete. All figures and information provided below are provisional and still could change.
After completing a preliminary consolidation of its first half 2017 accounts, Axway is announcing today preliminary revenue information and an anticipated range for its Profit from Operating Activities. Although the company continues to see positive progress in its Cloud business activities during the first half of 2017, during the second quarter of 2017 Axway experienced a drop in license revenue similar to that reported in the first quarter. These results are, from Axway group perspective, due to:
- delays in the finalization of license signatures, in addition to a lower forecast by comparison with the second quarter of 2016,
- the continued strategic priority to transition Axway’s Business model to integrate Cloud activity generated by the recent acquisitions has mobilized Axway resources during the last 6 months.
We expect that first half revenues will finalize as presented below:
| 1st Half Year (m€) | 2017 |
2016 |
2016 Restated 1 | Total Growth |
Organic |
|||||
| Licenses | 25.0 | 37.5 | 37.9 | -33.3% | -34.0% | |||||
| Cloud | 17.2 | - | 15.0 | - | 14.8% | |||||
| Maintenance | 73.5 | 70.2 | 70.8 | 4.6% | 3.7% | |||||
| Services | 27.1 | 37.0 | 28.2 | -26.7% | -3.9% | |||||
| Axway | 142.8 | 144.7 | 151.9 | -1.3% | -6.0% |
(1) at constant exchange rates and scope of consolidation
Due to the License and total revenue drop for the first half of 2017, Axway expects to have a lower Profit from Operating Activities rate which it forecasts will be between 3% and 5% of its total revenue for the first half of 2017.
The company is reviewing its full year perspective; however, the cumulative deficit of license revenue since the beginning of the year may be difficult to compensate. As a reminder, the signing of new Cloud contracts generates a lower impact in the current financial period as compared to license sales.
These facts, coupled with the recent acquisition, will put pressure on Axway’s ability to achieve full year Profit from Operating Activities rate (as a percentage of revenue) at the level of 2016.
An overview of first half earnings and outlook for the year will be provided at the July 26, 2017 financial results.
Disclaimer
This document is a free translation into English of the original French press release. It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text.
About Axway
Axway (Euronext: AXW.PA) is a catalyst for transformation. With Axway AMPLIFY™, our cloud-enabled data integration and engagement platform, leading brands better anticipate, adapt and scale to meet ever changing customer expectations. Our unified, API-first approach connects data from anywhere, fuels millions of apps and delivers real-time analytics to build customer experience networks. From idea to execution, we help make the future possible for more than 11,000 organizations in 100 countries. To learn more about Axway, visit www.investors.axway.com/en.
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