NetDimensions, a global provider of enterprise-class performance, knowledge and learning management systems, announces its final results for the year ended 31 December 2012.
•Revenue up by 12% to $13.8m ($12.3m in 2011)
•Deferred Revenue up by 36% to $6.1m ($4.5M in 2011)
•Invoiced Sales growth of 15% to $15.3m ($13.3m in 2011)
•Adjusted profit before tax of $0.4m ($1.3m in 2011) following substantial investment into global sales expansion and research and development
•Strong cash balance of $6.8m ($6.9m in 2011)
•71 new clients signed including Fresenius Medical Care, Eisai Pharmaceutical, Thames Water, Finnair, Mitsubishi and Geely Automotive
•New offices and legal entities established in Germany and Australia
•Key new alliances, including an independent software vendor ("ISV") partnership with IBM and a global reseller agreement with Qumas
•New product launches for NetDimensions Talent Suite, an integrated Talent Management System (TMS), and NetDimensions Talent Slate, an innovative tablet application for mobile workforces
Post Period-end Operations Highlights
•Successful $3.5m acquisition of eHealthcareIT on 1 March 2013
•Appointment of Matthew Chaloner as CFO of NetDimensions on 2 January 2013
Roger Durn, Chairman of NetDimensions, commented:
"The Board will substantially increase investment in 2013 as part of its long-term growth strategy to increase market share in the global Talent Management System ("TMS") market. We will pursue growth by simultaneously focusing on our core strengths in compliance for highly regulated industries and in the global healthcare industry following our successful acquisition of eHealthcareIT.
"The Board's strategic aim is to be the No. 1 player in the heavily compliant and highly regulated industries sector of the global TMS market. We have already gained traction as a leading specialised TMS provider focusing on clients who operate in these "highly complicated environments with high consequences" and will continue to invest money, time and effort to reach our goals. Our expectation is that since global regulatory requirements are both unavoidable and on the increase, we will enjoy not only higher revenue growth but also improved sales margins over time. We therefore look forward to 2013 with confidence."
Chairman's Statement 2012
The year ending 31 December 2012 was another year of solid progress for NetDimensions with both invoiced sales and GAAP revenue (revenue recognised in accordance with International Financial Reporting Standards) increasing to all-time highs. Deferred revenue was $6.1m, the best start of any financial year for bookable GAAP revenue.
The financial results for the year ending 31 December 2012 reflect the Board's continuing strategy of investing for future growth with invoiced sales up 15% to $15.3m ($13.3m in 2011) and GAAP revenue increasing by 12% to $13.8m ($12.3m in 2011).
Europe, Middle East and Africa (EMEA) became the best performing region in 2012 and now accounts for 51% of Group revenue. The North America region accounted for 32% of Group revenue and Asia Pacific (including China) 10%. The rest of the world made up 7% of overall revenue.
In 2012 the Group continued to focus on supplying software applications through their unique "Secure SaaS" (Software as a Service) offering. They report that revenue from this service increased by 36% to $4.5m ($3.3m in 2011). The Group also continued to develop their professional services business with revenue increasing by 53% in 2012 to $2.9m ($1.9m in 2011). NetDimensions professional services focus on implementation, configuration, customisation and support of their own products and services.
The Group's adjusted profit before tax was $0.4m ($1.3m in 2011). NetDimensions' profit before tax was $-0.2m ($0.6 profit in 2011).
NetDimensions continued to generate cash despite increased investment in the Group. Cash generated from operations was $1.1m in 2012 ($1.3m in 2011). The end-of-year cash balance was strong at $6.8m ($6.9m in 2011).
The Board also recognises the importance of continued product development and enhancement. 2012 investment in our technology groups increased by 15%, with total spend of US$2.3M (2011: US$2.0M).
The Company announced on 7 August 2012 that NetDimensions' shares would be made available for trade on America's OTCQX International stock market in addition to our primary listing on the London Stock Exchange AIM. NetDimensions shares are now offered for trading on OTCQX International in the form of American Depositary Receipts ("ADRs") at a ratio of 1 ADR to 5 ordinary shares.
Post period-end NetDimensions acquired eHealthcareIT for a total consideration of approximately US$3.5M. Founded in 2004 as a provider of e-learning and compliance solutions to U.S. hospitals, eHealthcareIT had delivered its solutions for the last six years via the NetDimensions Talent Suite.
Following the acquisition, eHealthcareIT was immediately rebranded NetDimensions Healthcare, a dedicated division of NetDimensions providing talent, learning, and compliance management solutions to the healthcare market. The acquisition gives NetDimensions a strong foothold in the US healthcare market and provides an excellent opportunity to grow the NetDimensions Healthcare business globally by leveraging our existing worldwide presence, established sales force and expanding product portfolio.
The acquisition is in line with NetDimensions' strategy to become a top global provider of talent management solutions for healthcare and other highly regulated industries. As a result of our long established and close working relationship with eHealthcareIT, the integration is progressing well.
The Board will substantially increase investment in 2013 as part of its long-term strategy to increase the Company's market share in the global TMS market.
To this end NetDimensions will pursue a number of growth options whilst continuing to focus on its core strengths in compliance and highly regulated industries.
In addition, the Group's new healthcare division will target the global healthcare industry. This global focus builds on the $3.5m acquisition of eHealthcareIT on 1 March 2013, a leading provider of compliance and talent management solutions to the U.S. healthcare industry.
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