HERNDON, Va.—(BUSINESS WIRE)—February 20, 2008— Deltek, Inc. (Nasdaq: PROJ), the leading provider of enterprise applications software for project-focused businesses, today announced financial results for its fourth quarter and full year ended December 31, 2007.
Fourth Quarter 2007 Results
License revenue for the fourth quarter was $27.1 million, an
increase of 15% from the fourth quarter of 2006, a new Company record.
For the quarter, consulting services revenue increased 8% to $22.3
million, and maintenance and support revenue increased 21% to $27.4
million from the prior year period. Total revenue for the fourth
quarter increased 15% from the fourth quarter of 2006 to $77.0
million, also a new Company record.
Non-GAAP net income for the fourth quarter increased 22% to $9.2
million, or $0.21 per diluted share, compared to $7.6 million, or
$0.19 per diluted share, in the fourth quarter of 2006. Non-GAAP net
income excludes the net-of-tax impact of stock-based compensation,
retention payments associated with the Company's 2005
recapitalization, amortization of acquired intangible assets and New
Mountain Capital fees.
GAAP net income for the fourth quarter of 2007 increased 12% to
$7.1 million, compared to $6.4 million in the fourth quarter of 2006.
Diluted earnings per share was $0.16 in the fourth quarter of both
2007 and 2006, primarily as a result of additional shares issued in
the Company's November 2007 initial public offering offset by the
increase in GAAP net income during the quarter.
Full-Year 2007 Results
License revenue for 2007 was $87.1 million, an increase of 16%
over 2006. 2007 consulting services revenue increased 25% to $83.4
million, and maintenance and support revenue increased 24% to $102.9
million over 2006. Total revenue for 2007 increased 22% from 2006 to
Non-GAAP net income for 2007 increased 43% to $29.5 million, or
$0.71 per diluted share, compared to $20.6 million, or $0.51 per
diluted share, in 2006.
Full-year 2007 GAAP net income increased 47% to $22.5 million, or
$0.54 per diluted share, compared to $15.3 million, or $0.38 per
diluted share, in 2006.
For details regarding the reconciliation of GAAP to non-GAAP
financial measures, please refer to the reconciliation tables included
in this press release.
"Our strong Q4 performance was driven by growing demand for our
comprehensive suite of solutions for project-based organizations,"
said Kevin Parker, president and CEO of Deltek. "Looking back over
2007, it was a very successful year for Deltek. We saw 22% growth in
our total revenue driven by 16% growth in our full year license
revenue, delivered new versions of our solutions and significantly
expanded our presence internationally. The market response to our
strategy, coupled with our focus on our strategic initiatives, makes
us confident in our outlook for 2008."
-- Deltek recently launched Vision 5.1 - the latest version of
its industry-leading software solution for project-focused
professional services firms. Utilizing the innovative business
intelligence capabilities of Microsoft SQL Server, Vision 5.1
takes analytical reporting to a whole new level by
consolidating project and general ledger data into flexible
views that can be tailored to a user's needs. With the
adoption of Vision 5.1, professional services firms can drive
increased operational efficiency and gain greater insight into
the financial health of their organizations.
-- Deltek recently expanded its senior leadership team by hiring
Taylor Macdonald as the Vice President of Worldwide Channels
and Sales Alliances. In this new position, Macdonald will be
responsible for driving the further expansion of Deltek's
global channel and alliance operations. Macdonald brings over
19 years of experience to Deltek and, among many accolades he
has received, has been named one of the "Top 100 Most
Influential People" in the accounting profession by Accounting
-- To further accelerate the Company's international presence,
Deltek recently announced a reseller agreement with Wilde FEA
Ltd., a leading U.K.-based engineering consulting company.
Wilde will be a key business partner responsible for selling
and supporting Deltek's Vision enterprise software solution
into the architectural and engineering markets. This move
follows Wilde's own successful implementation of Vision and is
consistent with Deltek's commitment to extend its partner
network and offerings into the U.K. and other European
-- Deltek continues to build a strong presence in the Canadian
market. Challenger Geomatics Ltd., based in Edmonton, Canada,
recently moved to Deltek Vision to dramatically streamline its
accounting and planning processes. Challenger Geomatics
provides innovative professional land surveying services
throughout Canada and the world to a wide range of industries
including oil and gas, construction and local government
-- Deltek received CustomerSat's 2007 Achievement in Customer
Excellence (ACE)(TM) Award for "Customer Support
Satisfaction." Deltek received this award for demonstrating
industry-leading customer service throughout 2007.
Conference Call Information
Deltek will host a conference call at 5:00 p.m. Eastern Standard
Time today to discuss the Company's fourth quarter and full-year
results. To access this call, dial 1-877-381-6419 in North America and
1-706-643-9496 outside North America. The conference call also will be
available via webcast at
investor.deltek.com A replay of this
call will be available through February 27, 2008. To access this
replay, dial 1-800-642-1687 in North America and 1-706-645-9291
outside North America. The confirmation number is 30713090.
PROJ) is the leading provider of enterprise
applications software designed specifically for project-focused
businesses. For more than two decades, our software applications have
enabled organizations to automate mission-critical business processes
around the engagement, execution and delivery of projects. More than
12,000 customers worldwide rely on Deltek to measure business results,
optimize performance, streamline operations and win new business. For
more information, visit www.deltek.com.
Use of Non-GAAP Financial Measures
This press release and the related conference call described above
contain certain non-GAAP financial measures, including non-GAAP net
income. Information about other non-GAAP financial measures that are
referred to in the related conference call may be accessed on the
Company's website at
investor.deltek.com The Company defines
non-GAAP net income as GAAP net income before the net-of-tax impact of
stock-based compensation, retention payments associated with the
Company's 2005 recapitalization, amortization of acquired intangible
assets and New Mountain Capital fees.
The Company believes that the presentation of these non-GAAP
financial measures provides useful information to its investors and
lenders because these measures enhance their overall understanding of
the Company's financial performance and the prospects for the future
of the Company's ongoing business operations. The Company believes
that by reporting these measures, it provides insight and consistency
in its financial reporting and presents a basis for comparison of its
business operations between current, past and future periods. In
addition, the measures provide a basis for the Company to compare its
financial results to those of other comparable publicly traded
companies and are used by its management team to plan and forecast its
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
which are prepared in accordance with U.S. GAAP and may be different
from non-GAAP financial measures used by other companies. Investors
are encouraged to review the reconciliations of our GAAP to non-GAAP
financial measures, which are set forth below and on our website.