Period-end Trading Update

RNS Number : 4736H

WANdisco Plc

12 July 2012

 



12 July 2012

WANdisco plc

Period-end Trading Update

H1 Subscription Bookings increase by 60 per cent year-on-year

Sheffield - WANdisco plc (LSE: WAND), a leading provider of global collaboration software to the software development industry, is pleased to provide the following update for the six months ended 30 June 2012.

Trading for the period from 1 January 2012 to date was strong, delivering substantial growth in subscriptions.

In the second quarter, subscription bookings reached a record level of $1.84 million, representing a 43 per cent increase year-on-year. When combined with bookings of $1.54m achieved in the first quarter, the Company achieved total bookings for the first half of $3.38 million: a 60 per cent increase year-on-year.

New customers included Ricoh, which purchased WANdisco's new uberSVN product and Pitney Bowes, which adopted WANdisco's Subversion MultiSite product.   The Company also secured its first product sale in China with Huawei, which purchased Subversion MultiSite to solve network latency issues between China and Canada.

Renewal rates by value were 230 per cent, based on subscription licence values booked during the period. Renewals included Juniper Networks, Cisco Systems, Vanguard, McGraw Hill, Telenav, McAfee, ING and Disney.  Many of these customers purchased additional user licences, added-on more sites or committed for longer time periods to WANdisco's products. After adjusting for multi-year deals, the annualised renewal rate by booking value was 113 per cent.  All subscription licenses, including multi-year deals are paid up-front, in cash, at the commencement of the term.

During the period the Company launched a new online training subscription product and sold two significant deals to existing customers: John Deere and Syniverse. Other product highlights included the launch of Subversion MultiSite 4.1, incorporating a significantly updated access control product, and the launch of WANdisco's new uberSVN product, also incorporating embedded, enterprise-class, access control.

The Company has generated further cash during the period.  When combined with the $23 million of cash raised following the successful admission of the Company to AIM on 1 June 2012, the business is now in a strong position to accelerate its growth further by enlarging its sales team and investing in new products, in particular in the Big Data market, as well as enhancing its existing product lines.

Historically, the second half of WANdisco's financial year is its strongest, due to the higher levels of renewals that arise.  As a consequence, the Directors are confident that the Company remains on track to achieve its targets for the current financial year.

The Company will announce its interim results in the week commencing 24 September 2012.

For further information please contact:

WANdisco plc:
David Richards, Chairman and Chief Executive Officer	via FTI Consulting
Nick Parker, Chief Financial Officer
FTI Consulting:	[phone]
Matt Dixon / Sophie McMillan / Jon Snowball
Panmure Gordon & Co.	[phone]
Fred Walsh / Giles Stewart (Corporate Finance)
Adam Pollock, Charles Leigh-Pemberton (Corporate Broking)

Ends

About WANdisco plc

·      WANdisco (LSE: WAND) is a leading provider of global collaboration software to the software development industry and is headquartered in Sheffield. WANdisco's differentiated patent-pending technology provides a cost-effective solution to the problems faced by organisations with globally distributed software engineering teams. By using WANdisco's technology in conjunction with Apache Subversion ("Subversion"), an open source version control system, software developers at globally distributed sites are able to access the same data program at all times which helps improve productivity, and prevent downtime and data loss.

·      WANdisco currently has more than 200 customers globally, a number of which are in the US Fortune 100. Customers include some of the world's most well-known and well regarded companies across a broad range of industry sectors such as AT&T, Aviva, Barclays, Hewlett Packard, Honda, Intel, John Deere, Johnson & Johnson, Juniper Networks, Motorola, NCR, Nokia, NTT and Wal-Mart.

·      WANdisco's technology and products operate in the Application Development market. According to Gartner Inc. in its report entitled "Market Share Analysis: Application Development Software, Worldwide, 2010" which was published on 21 April 2011, ("Gartner Report") this market, which is currently valued at $8.64bn in 2011, is forecast to grow to $9.41 billion in 2015.

·      The Group uses an annual subscription licence model to sell its products, providing a predictable revenue stream and a foundation for further expansion. Revenue has increased by 30.0 per cent. from $3.0 million in 2010 to $3.9 million in 2011 and EBITDA before share based payments and exceptional costs has increased from a loss of $0.8 million in 2010 to a profit of $0.2 million in 2011.

·      The Group's success to date has allowed it to grow organically without any venture capital, angel investors or private equity funding.  

·      David Richards, Jim Campigli and Dr. Yeturu Aahlad were the core founders of WANdisco, Inc. in 2005. They were subsequently complemented by Nick Parker, Chief Financial Officer, and by Paul Walker (former CEO of The Sage Group plc) and Ian Duncan (former Group Finance Director of Royal Mail Holdings plc) as non-executive directors. The WANdisco senior team has significant experience of operating in the technology industry and of managing high-growth companies.

·      To date, WANdisco has focussed on exploiting its technology within the software development industry. Going forward, the directors believe that there is potential to apply the technology to other significant markets, including the Big Data market, and thereby continue the Group's strategy of rapid organic growth through product expansion and customer acquisition.

 

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