EX-99.7 8 dex997.htm PRESENTATION Presentation
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March 17 
, 2011
CDC Software
Financial Results for Q4 2010 and Full Year 2010
Exhibit 99.7
th


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Cautionary Note Regarding Forward-Looking Statements
The contents of this presentation, what we say during it, as well as the contents of our earnings press release contain certain forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act of 1995. We caution you that all forward-looking statements involve risks
and uncertainties.  These forward-looking statements include statements regarding our expectations regarding future revenue growth and financial
performance for any future period, our beliefs about our plans, goals, strategies and pipelines, and  factors that may affect them, our plans regarding future
activities and factors that may affect them, our expectations regarding any trends, and other statements we may make.
 
Important factors could cause actual results to differ materially from those in the forward-looking statements.  We urge you to read the company’s public
filings with the United States Securities Exchange Commission (“SEC”), our Annual Report on Form 20-F for the year ended of December 31, 2009 which
was filed with the SEC on June 1, 2010, our registration statements and other press releases – all of which are available on our corporate website at
www.cdcsoftware.com and at www.sec.gov. We also encourage you to review the press releases and filings of our ultimate parent company, CDC
Corporation.
All forward-looking statements are based upon information available to management as of the date thereof, and you are cautioned not to place any undue
reliance on any forward-looking statements, which speak only as of such date. We assume no obligation to update or alter the forward-looking statements
whether as a result of new information, future events or otherwise. Historical results are not indicative of future performance.
The financial results provided herein apply only to CDC Software Corporation, a subsidiary of CDC Corporation. These financial results do not apply to, and
are not indicative of, the consolidated financial results of CDC Corporation, or the financial results of CDC Games Corporation, China.com, Inc. or any of
their respective subsidiaries.  Investors are cautioned not to place reliance on the financial results set forth herein for purposes of any investment decision
with respect to the shares of CDC Corporation, and should read the foregoing in conjunction with the reports and other materials filed with the SEC by CDC
Corporation and CDC Software Corporation, from time to time.
This presentation also includes Non-GAAP Financial Measures, which are not  alternatives for measures prepared under generally accepted accounting
principles in the United States ("GAAP"). Non-GAAP Financial Measures have inherent limitations and should not be used as a substitute for, or considered
superior to, measures of financial performance prepared in accordance with GAAP.  Please see reconciliations of Non-GAAP Financial Measures to GAAP,
which are provided in our Q4 2010 earnings press release.


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Company Update
President
CDC Software
Bruce Cameron


CDC Software Q4 Financial Summary Non-GAAP* results:
Recurring Revenue
License Revenue**
Net Income
EPS
Adjusted EBITDA
Application Sales
TCB
Q4 2009
Q4 2010
Variance
Cash from Op.
Cash & Cash Equiv
Recurring Revenue
Total Revenue
License Revenue**
Net Income
EPS
Adjusted EBITDA
Application Sales
TCB
Q4 2009
Q4 2010
$26.6M
$55.0M
$10.5M
$10.8M
$0.37
$14.1M
$12.0M
$104.4M
$30.6M
$57.6M
$10.1M
$5.7M
$0.20
$9.0 M
$14.6M
$136.5M
+15%
+5%
-4%
-47%
-46%
-36%
+22%
+31%
Variance
Cash from Op.
$6.7M
$13.3M
+99%
Cash & Cash Equiv
$40.3M
$44.7M
+11%


Year Ended December 31, 2010 Financial Results
CDC Software Financial Year 2010 Summary Non-GAAP* results:
*Please see explanations and reconciliations of Non-GAAP financial measures in our Q4 2010 earnings press release
** Please note that License Revenue is a GAAP measurement
Recurring Revenue
Total Revenue
License Revenue**
Net Income
EPS
Adjusted EBITDA
FY 2009
FY 2010
$101.0M
$204.5M
$33.1M
$37.2M
$1.40
$53.7M
$115.2M
$217.5M
$35.9M
$29.3M
$1.03
$41.0M
+14%
+6%
+8%
-21%
-26%
-24%
Variance
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On-Premise and Cloud Businesses
o
Characterized by higher margins and modest growth
o
Highlights EBITDA, and operates purely as an EBITDA
play
o
Characterized by rapid growth and future EBITDA focus
o
Highlights strong revenue growth
The 2 businesses each have separate and distinct strategies and values:
On-Premise
Cloud
Introduced new products and version upgrades for core on-
premise ERP, supply chain management and complaint
management applications
Pivotal CRM and CDC Factory solutions reported 20% year
over year growth
R&D investments increased by 24% in Q4 2010 as a
result of numerous cloud integration projects and a major
new deliverable in the CDC Factory on-premise product
line
Key Integration Project between CDC eCommerce
platform and on-premise CDC Supply Chain solution for a
leading retail customer
Enhancement of CDC eCommerce
platform for better
storefront management around a customer’s products
Recent renewal and additional upgrade of a multi-year and
multi-million cloud deal with a Fortune 1000 company
The cloud business reported 10 new logo customers
Highlights:
Highlights:


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Company Goal -
70% Recurring Revenue
Goal of 70% of Total Revenue to be comprised of Recurring
Revenue in the next few years
* Estimations based upon current plans, goals and projections. Subject to change.
TCB is the total of the following sub-groups:
Remaining value of SaaS
and term license
Contracted renewals for current SaaS
and rental contracts
Annualized maintenance revenue from existing on-premise
contracts
Total Contracted Backlog (TCB)
(in millions)
With
our
steady
growth
in
TCB
from
$100
million
in
2009
to
$130+
million
in
2010,
we’re
committed
to
reach
70%
recurring revenue of total revenue over the next few years
$104.4
$136.5
Q4 '09
Q4 '10
2009
2010
Goal*
Recurring Revenue
49%
53%
70%
Recurring Revenue as % of Total Revenue


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Top 10 On-Premise Deals
Top 10 Cloud Deals
Product
Industry
Territory
License Revenue
CDC Supply Chain
Automotive
USA
$823K
CDC Back Office
Food & Beverage
USA
$490K
CDC Front Office
Paper Distribution
France
$488K
CDC Front Office
Aerospace
USA
$300K
CDC Factory
Food & Beverage
Netherlands
$299K
CDC Front Office
Financial Services
UK
$257K
CDC Supply Chain
Food & Beverage
USA
$255K
CDC Front Office
Financial Services
Canada
$216K
CDC Front Office
Chemicals
USA
$190K
CDC Front Office
Health Care
Australia
$150K
Total
$3.5M
Top Deals –
On-Premise and Cloud in Q4 2010
Product
Industry
STCV
CDC TradeBeam
Software/Internet
$540K
CDC TradeBeam
Life Sciences
$417K
CDC TradeBeam
Automotive
$382K
CDC gomembers
Not for Profit
$219K
CDC gomembers
Not for Profit
$158K
CDC TradeBeam
Life Sciences
$143K
CDC gomembers
Not for Profit
$140K
CDC MarketFirst
Life Sciences
$130K
CDCF OnePlan
Food & Beverage
$126K
CDC gomembers
Not for Profit
$117K
$2.4M


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Enterprise Sales Units
Application Revenue*
Strong growth in application sales during Q4 2010 was primarily due to significant growth in the company’s cloud
business, especially inTradeBeam and CDC gomembers product lines
Strong growth in application sales during Q4 2010 was primarily due to significant growth in the company’s cloud
business, especially inTradeBeam and CDC gomembers product lines
Application Sales
(in millions)
(# of Deals)
Comprised of:
(i)
License revenue
(ii)
STCV  (Secured Total Contract Value) for SaaS
* Please see explanations and reconciliations of Non-GAAP financial measures in our Q4 2010 earnings press release
$14.6
$12.0
Q4 '09
Q4 '10
Q4 '09
Q1 '10
Q2 '10
Q3 '10
Q4 '10
273
294
344
348
412


Added 11 OEM Partners in 2010
On Asset –
a leading provider of machine-to-machine (M2M) wireless asset tracking, sensing and control solutions
MIR3 –
a developer of real-time Intelligent Notification software
Since adding MIR3 as a partner in December 2010, a leading Pakistan telecommunications company and a Canadian
telecommunications company were added as customers of the partnership
Added 11 OEM Partners in 2010
On Asset –
a leading provider of machine-to-machine (M2M) wireless asset tracking, sensing and control solutions
MIR3 –
a developer of real-time Intelligent Notification software
Since adding MIR3 as a partner in December 2010, a leading Pakistan telecommunications company and a Canadian
telecommunications company were added as customers of the partnership
Strategic Alliance Program Highlights
Channel Revenue Growth
OEM Sales Pipeline Growth
(in ‘000s)
$1,750.0
$150.0
(in millions)
$3.6
$5.8
$6.5
Q4 '09
Q4 '10
2008
2009
2010
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CDC Front
Office
CDC Supply
Chain
CDC
Factory
CDC
gomembers
CDC
eCommerce
CDC Back
Office
Hybrid: On-Premise and Cloud
R&D Offshore Capabilities
Global Services Capability
Global Distribution
Broad Application Suite
Highly scalable
through organic
growth and
strategic
acquisitions
Back Office Support
Comprehensive Solutions and Services


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Center of Excellence Units –
Hybrid Products Offering


Expansive Global Presence
Support, Professional
Services, and Consulting
Employees
557
NA : EMEA : Asia/Pac
License Revenue
Breakdown
51% : 32% : 17%
Employees
1,400
Resellers, Distributors,
and Franchise Owners
1,120
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Financial Update
CFO
CDC Software
Stephen Dexter


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(in millions)
Financial Highlights
Total Non-GAAP Revenue* Yearly Comparison
* Please see explanations and reconciliations of Non-GAAP financial measures in our Q4 2010 earnings press release
Days Sales Outstanding (DSO)
(# of days)
49%
53%
$204.5
$217.5
2009
2010
Recurring Revenue
Other Revenue
80
80
78
68
Q1'10
Q2'10
Q3'10
Q4'10


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$40.3
$36.4
$44.7
Q4 '09
Q3 '10
Q4 '10
$6.7
$13.3
Q4 '09
Q4 '10
Financial Highlights
Net Cash Provided by
Operating Activities
(in millions)
Cash and Cash Equivalents
(in millions)


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Adjusted EBITDA & Adjusted EBITDA Margin*
(i)
Company’s cloud business and related investments needed to expand the
business.
(ii)
Costs due to previous acquisitions, capitalized development costs and litigation
related to the Sunshine Mills case
Financial Highlights
(in millions)
Non-GAAP Net Income and EPS
*
(in millions)
* Please see explanations and reconciliations of Non-GAAP financial measures in our Q4 2010 earnings press release
2007
2008
2009
2010
Adjusted EBITDA and Adjusted EBITDA Margin were impacted by:
Note:
19%
$0.52
$0.66
$1.40
$1.03
2007
2008
2009
2010
Adjusted EBITDA
Adjusted EBITDA Margin %
Non GAAP Net Income
Non GAAP EPS
26%


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Selected Companies include SaaS, on-premise and hybrid software vendors
Peer Group Analysis
EPS: $1.03
Adjusted EBITDA: 19%
FY 2010 Non-GAAP** EPS*
Peer Group Analysis
FY 2010 Adjusted EBITDA* Margin
Peer Group Analysis
 
*Source: Based on publicly-available financial information obtained from Thomson Reuters as of 3/16/2011- www.thomsonone.com
** Please see explanations and reconciliations of Non-GAAP financial measures in our Q4 2010 earnings press release


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Summary
President
CDC Software
Bruce Cameron


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FY 2010 Non-GAAP earnings per share of $1.03 was in line with guidance
Recurring revenue increased 15% from the same period of last year, and 14% on a year-to-year basis
Total Contract Backlog and Application Sales increased 31% and 22% respectively, on a year-to-year basis
Growth in TCB from $104 million in 2009 to $130+ million in 2010; goal to reach 70% recurring revenue of total revenue over
the next few years
Cloud business shows signs of success reflected by its strong sales performance
Profitability
continues
to
be
impacted
by
the
high
upfront
costs
of
the
cloud
business
and
ongoing
litigation
Continue building network of OEM and channel relationships
Non-GAAP EPS still one of the highest among our selected software vendors peer group
FY 2010 Non-GAAP earnings per share of $1.03 was in line with guidance
Recurring revenue increased 15% from the same period of last year, and 14% on a year-to-year basis
Total Contract Backlog and Application Sales increased 31% and 22% respectively, on a year-to-year basis
Growth in TCB from $104 million in 2009 to $130+ million in 2010; goal to reach 70% recurring revenue of total revenue over
the next few years
Cloud business shows signs of success reflected by its strong sales performance
Profitability
continues
to
be
impacted
by
the
high
upfront
costs
of
the
cloud
business
and
ongoing
litigation
Continue building network of OEM and channel relationships
Non-GAAP EPS still one of the highest among our selected software vendors peer group
Summary


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Investor Inquiries
Senior Vice President
678.259.8510
mbahl@cdcsoftware.com
Monish Bahl
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