Re-dubbed SSA Global to focus on consolidating, verticalizing solutions
Chicago September 23, 2003 Enterprise software provider SSA Global Technologies today unveiled its new brand and name, SSA Global, along with a new product strategy that will focus on functional consolidation of its current solutions lineup, incremental product modernization, business-process integration and verticalization of its solutions.
SSA Global has been on a buying streak of late, acquiring most of enterprise software company Baan from Invensys, supply chain execution provider EXE Technologies and Ironside Technologies, a provider of e-commerce systems for manufacturing and distribution companies. Last year SSA purchased the supply chain management, financial management and human-resource-management product lines of interBiz, the e-business applications division of Computer Associates.
Now the company said that it would consolidate its technically and functionally similar products into unified solutions. As SSA Global customers upgrade, they will see improved functionality and reduced complexity, according to the solution provider. A key objective, SSA said, is to protect customers' prior investment in the company's software.
SSA Global also said it will continue to update its solutions through internal development, continued acquisitions and industry alliances. For example, a recent partnership with Firepond will bring new Java-based configuration technologies to the SSA Global portfolio.
In addition, SSA said it is increasingly tailoring its solutions to specific industries in an effort to lower the total cost of ownership through reduced customization and integration costs for its customers. Targeted industries include aerospace and defense, automotive, chemicals, consumer packaged goods and the other verticals that SSA serves.
Finally, SSA said that its business process integration strategy will allow extension products to be integrated with any core SSA Global enterprise resource planning (ERP) system. This integration will allow solutions to span entire business processes, encompassing multiple products, diverse information sources and legacy systems, the solution provider said, adding that the recent Ironside acquisition has already supported the integration of new order management functionality into several SSA Global solutions.
"Our customers want enhanced value from their currently installed systems, as they simultaneously invest for the future," said Cory Eaves, vice president of solutions management and research at SSA Global. "As we have demonstrated over the past year, we will continue to build, acquire and partner for products that deliver on this strategy to serve our targeted markets."
Currently SSA offers solutions covering corporate performance management (CPM), customer relationship management (CRM), financial management, human capital management (HCM), product lifecycle management (PLM), supply chain management (SCM) and supplier relationship management (SRM).
Earlier this month SSA reported results for its fiscal fourth quarter and year ended July 31. For the fourth quarter the company reported total revenue of $85.2 million, an increase of 19 percent over the fourth quarter of fiscal year 2002. Software license revenues were $29.9 million, up 41 percent over the prior year quarter and represent 35 percent of total revenue in the quarter. Fourth quarter earnings before interest, taxes, amortization (EBITA) were $22.1 million, or 26 percent of total revenue. Cash-on-hand as of quarter's end was $65 million.
Total revenues for the year were $285.4 million, an increase of 50 percent from 2002. EBITA income was $65.5 million, which represents 23 percent of total revenue. For the year, software license fees represented 33 percent of total revenues, with the remaining 67 percent coming from maintenance and services.
