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Total Revenue, License and Subscription Revenue, and Consulting Revenue All Increase as Infor Continues Successful Transition to Cloud Computing
NEW YORK, NY --(Marketwired - March 08, 2016) - Infor, a leading provider of beautiful business applications specialized by industry and built for the cloud, today announced strong results for the third quarter of its fiscal 2016, ended January 31, 2016. Total revenues increased 2 percent at actual currency rates and 7 percent in constant currency1 compared to Q3 in fiscal 2015, with software license fees and subscriptions revenues up 23 percent at actual currency rates and 27 percent in constant currency over the same period. Non-GAAP total revenues2 increased 3 percent at actual currency rates and 7 percent in constant currency compared to Q3 in fiscal 2015, with non-GAAP software license fees and subscriptions revenues2 up 28 percent at actual currency rates and 32 percent in constant currency over the same period. Infor also experienced strong growth for Infor Consulting Services (ICS). Infor added more than 600 new customers in the quarter.
"Q3 was another strong quarter for Infor with ongoing growth in our business as we continue to set the standard for successfully transitioning to a cloud business model," said Charles Phillips, CEO of Infor. "Infor's investments in product, brand building, consulting services enablement, and salesforce coverage continue to pay off as reflected in our new sales deal pipeline which, propelled by SaaS, is at the highest levels in company history as we enter our fourth quarter."
The Retail and Healthcare verticals each continue to grow with strong performance in the quarter supported by high SaaS bookings growth in Financial Services and GT Nexus, which saw the best performance in SaaS bookings in its history this quarter, the first full quarter after GT Nexus was acquired by Infor in September 2015.
Infor also announced a $25 million investment in retail analytics provider Predictix in Q3, continuing the company's push to deliver much-needed innovation to an industry facing continued disruption. As part of the agreement, Infor will become a reseller of Predictix, deploying, managing and supporting the applications in the Infor cloud, and will infuse Predictix into development of Infor CloudSuite Retail, a new modern suite of enterprise applications delivered in the cloud and designed for today's retailing landscape.
Infor builds beautiful business applications with last mile functionality and scientific insights for select industries delivered as a cloud service. With over 14,000 employees and customers in more than 200 countries and territories, Infor automates critical processes for industries including healthcare, manufacturing, fashion, wholesale distribution, hospitality, retail, and public sector. Infor software helps eliminate the need for costly customization through embedded deep industry domain expertise. Headquartered in New York City, Infor is also home to one of the largest creative agencies in Manhattan, Hook & Loop, focused on delivering a user experience that is fun and engaging. Infor deploys its cloud applications primarily on the Amazon Web Services cloud and open source platforms. To learn more about Infor, please visit www.infor.com.
Infor customers include:
This press release contains forward-looking statements that state Infor's intentions, beliefs, expectations, or predictions for the future. Forward-looking statements often include use of the future tense with words such as "will," "may," "intends," "anticipates," "expects" and similar conditional or forward-looking words and phrases. These forward-looking statements are neither promises nor guarantees, but are only predictions and may differ materially from actual future events or results. Such statements are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Infor undertakes no obligation to update or revise the information contained herein.
Important factors that could cause a material difference between these forward-looking statements and actual events include, among other things: our ability to increase revenues from new license sales and retain existing customers; whether we are able to complete and deliver products and services within required time frames and budgets to meet increasingly competitive customer demands and performance guaranties; risks inherent in fluctuating international currency exchange rates in light of our global operations and the unpredictable effect of geopolitical world and local events; our ability to manage expenses effectively and maintain profitability; our ability to achieve revenue from products and services that are under development; the competitive environment in which we operate and resulting pricing pressures; and whether the anticipated effects and results of our new product offerings and successful product implementation will be realized. These and other potential risks and uncertainties that relate to Infor and its business and operations are summarized in more detail from time to time in our filings with the United States Securities and Exchange Commission. Please refer to Infor's most recent quarterly and annual reports available through the website maintained by the SEC at www.sec.gov for more information on the risk factors that could cause actual results to differ.
1 In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percent change in the results from one period to another period using constant currency disclosure. To present this information, results for our entities in the third quarter of fiscal 2016 reporting in currencies other than the U.S. Dollar are converted into U.S. Dollars at constant exchange rates (i.e. the rates in effect in the third quarter of fiscal 2015) rather than the actual exchange rates in effect during the third quarter of fiscal 2016.
2 This press release contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (GAAP). Non-GAAP total revenues and software license fees and subscriptions revenues include pro forma adjustments to increase total revenues and software license fees and subscriptions revenues that we would have recognized if we had not adjusted acquired deferred revenues to their fair values as required by GAAP. These non-GAAP disclosures have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of Infor's results as reported under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Infor's management uses these non-GAAP measures in its analysis of Infor's performance because it believes these measures are material and will be used as a measure of Infor's performance by investors.
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