License Revenue of $14.6 Million, a 4% Increase from Prior Year
Product-Related Bookings of $16.9 million, up 34% from Prior Year
HERNDON, Va. — (BUSINESS WIRE) — May 5, 2011 — Deltek, Inc. (Nasdaq: PROJ), the leading global provider of enterprise software and information solutions for professional services firms, government contractors, and government agencies, today announced financial results for the quarter ended March 31, 2011.
Q1 software revenue was $14.6 million, compared to $14.0 million in the first quarter of 2010, an increase of 4.0%. Product-related bookings were $16.9 million, a 34% increase from the first quarter of 2010. Product-related bookings reflect the total contract value of the company’s software products including both perpetual and term licenses sold during the quarter.
Subscription revenue, which consists of subscriptions to our information services products and includes software products sold on a subscription or term basis, was $7.0 million in Q1. Q1 of 2010 did not contain subscription revenues. Subscription revenue in Q1 was impacted by a purchase accounting write down of $1.7 million of deferred revenue associated with the acquisition of INPUT.
Maintenance revenue in the first quarter was $38.2 million, up from $32.6 million in the first quarter of 2010, an increase of 17.2%. Q1 maintenance revenue was impacted by a purchase accounting write down of $300,000 of deferred revenue associated with the acquisition of Maconomy. Consulting and other revenue for Q1 was $20.2 million, up 17.3% compared to $17.2 million in Q1 2010.
Total revenue for the first quarter of 2011 was $80.0 million, an increase of 25.3% from $63.8 million in 2010. Q1 total revenue was impacted by $2.0 million in deferred revenue write downs associated with the acquisitions of INPUT and Maconomy noted above.
Q1 GAAP operating loss was $7.1 million compared to GAAP operating income of $9.2 million in the prior-year period. Our GAAP results include the purchase accounting impacts and the costs associated with the Maconomy and INPUT acquisitions comprised of acquisition-related costs, restructuring charges and incremental intangible asset-related amortization expense. The total incremental effect of these items was $9.9 million. In addition, GAAP operating results were negatively affected by costs associated with the integrations of Maconomy and INPUT, an acceleration of our sales and marketing activities and product-related investments.
Q1 GAAP operating loss as a percentage of revenue was - 8.8%, reflecting acquisition and purchase accounting impacts. This compares to a GAAP operating margin of 14.4% in Q1 2010. The Q1 GAAP margin percentage was reduced by 12.4 percentage points as a result of the impacts of the Maconomy and INPUT acquisitions.
Non-GAAP operating income for the first quarter of 2011 was $6.3 million, compared to $13.8 million in Q1 2010. Non-GAAP operating income was negatively affected by the costs associated with the continuing integration and rationalization of our acquisitions.
Q1 Non-GAAP operating income as a percentage of revenue was 7.6%, compared to 21.6% in Q1 2010.
Q1 GAAP net loss was $6.6 million, or - $0.10 per diluted share, compared to net income of $4.2 million, or $0.06 per diluted share, in the first quarter of 2010.
Non-GAAP net income for the first quarter of 2011 was $1.6 million, or $0.02 per diluted share, compared to $6.9 million, or $0.11 per diluted share, in Q1 2010.
“Our Q1 results reflect our successful expansion into new verticals and geographies as well as continuing success selling solutions into existing market segments,” said Kevin Parker, president and CEO of Deltek. “We won key deals internationally, with over 30% of license revenue generated outside the U.S. Q1 product-related bookings were $16.9 million, an increase of 34% from a year ago, highlighting our increasing momentum in the marketplace.
“We are looking forward to a strong 2011 - with a growing international presence, an expanding solutions portfolio, new revenue streams and increasing margins. We’re already seeing positive results from these new opportunities, and we expect an acceleration of these trends in the coming quarters.”
Comparison of GAAP and Non GAAP Measurements:
Non-GAAP operating income and margin exclude the pre-tax impact of stock-based compensation, amortization of acquired intangible assets, purchase accounting impacts relating to acquisitions, acquisition-related costs and restructuring charges. Non-GAAP net income excludes the same items on a net-of-tax basis.
A reconciliation of GAAP to non-GAAP financial measures is provided in the tables at the end of this press release.
- Deltek acquired FedSources and The Washington Management Group for $26 million in an all-cash transaction. This acquisition extends and accelerates Deltek's unique portfolio of solutions that power the complete business lifecycle for government contractors – from business development and capture management to comprehensive financial and project management. The addition of these new capabilities to Deltek's INPUT and GovWin information solutions delivers unmatched capabilities for finding, winning, and managing government business.
- Deltek closed a number of significant deals both in North America and internationally with its Deltek Maconomy and Deltek People Planner solutions. Key new customers in North America include Stamats, a marketing and media firm; Boulay, Heutmaker, Zibell & Co, a leading independent accounting and financial consulting firm; and Orckestra, a Montreal-based information technology services provider. Internationally, Deltek signed strategic deals with COWI, one of the world’s largest consulting firms, and with Tauw, one of the largest consulting and engineering companies in Europe. Both companies will leverage Deltek solutions across multiple offices throughout Europe.
- Deltek received the 2011 MarketTools Achievement in Customer Excellence (ACE) award. The MarketTools ACE Award certifies, acknowledges, and celebrates outstanding achievement in customer satisfaction, employee satisfaction, and/or partner satisfaction. Deltek has now won the ACE award for four consecutive years, demonstrating the company’s ongoing commitment to delivering outstanding customer support satisfaction.
- Deltek announced the availability of Deltek Active Risk Manager (ARM), a new solution that improves project profitability for government contractors. Part of Deltek’s integrated governance, risk, and compliance solution set, Deltek ARM is a web-based enterprise risk management solution that helps improve project profitability and reduces unwanted surprises by centralizing the management of project scope, schedule and cost risks into one solution.
- Deltek released an enhanced version of Deltek Maconomy Analytix, an innovative business intelligence solution for professional services firms. This new solution, seamlessly integrated to the Deltek Maconomy ERP solution, turns business data into knowledge and leads to more effective decision-making by uniquely combining business reporting, ad hoc query, and deep analysis capabilities into one world-class business intelligence solution.
- Deltek opened a new office in Diegem, Belgium to serve its growing customer base in the Belgian and Luxembourg markets. This new office is part of Deltek’s strategy to further expand in Europe, a key growth market for the company.