Q4 EPS of $0.14 and Non-GAAP EPS of $0.20
Record Annual Total Revenue of $289 Million
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, 2008.
Fourth Quarter 2008 Results
Total revenue for the fourth quarter of 2008 was $71.7 million, compared to $77.0 million in the prior year period. License revenue for Q4 was $19.8 million, compared to $27.1 million in the fourth quarter of 2007. Consulting services revenue for Q4 was $21.9 million, compared to $22.3 million in the prior year period. Maintenance and support revenue in the fourth quarter of 2008 was $30.0 million, compared to $27.4 million in Q4 2007.
Non-GAAP net income for the fourth quarter of 2008 was $8.5 million, or $0.20 per diluted share, compared to $9.2 million, or $0.21 per diluted share, in the fourth quarter of 2007. GAAP net income for the fourth quarter of 2008 was $6.1 million, or $0.14 per diluted share, compared to $7.1 million, or $0.16 per diluted share, in the fourth quarter of 2007.
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, restructuring charges and New Mountain Capital fees.
“In the face of increasing economic uncertainty, we are pleased with our ability to achieve our Q4 revenue objectives, exceed our profit goals and generate strong cash flow. Our results reflect the continuing strength of our government contracting business, combined with our focus on expanding service margins and maintaining strong expense controls,” said Kevin Parker, Deltek president and CEO. “Despite the tough economic climate, in 2008 we achieved record total revenue, increased profitability, reported record operating cash flow, added 450 new customers to our installed base and achieved near double-digit license growth in our core government contracting business.”
Full-Year 2008 Results
Total revenue for 2008 was $289.4 million, compared to $278.2 million in 2007. License revenue for 2008 was $77.4 million, compared to $87.1 million in 2007. Consulting services revenue for 2008 was $91.6 million, compared to $83.4 million in 2007. Maintenance and support revenue in 2008 was $115.7 million, compared to $102.9 million in 2007.
Non-GAAP net income for 2008 was $32.4 million, or $0.73 per diluted share, compared to $29.5 million, or $0.71 per diluted share, in 2007. Full-year 2008 GAAP net income was $23.5 million, or $0.53 per diluted share, compared to $22.5 million, or $0.54 per diluted share, in 2007.
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, restructuring charges and New Mountain Capital fees.
A reconciliation of GAAP to non-GAAP financial measures is provided in the tables at the end of this press release.
Recent Highlights
- Q4 cash flow from operations increased more than 35% to $9.5 million, compared to $7.0 million in the prior-year period, resulting in a cash balance of $35.8 million at December 31, 2008. For 2008, cash flow from operations increased over 120% to $42.6 million, a new Company record.
- During Q4, Deltek added 130 new customers, a 9% increase over Q4 2007. For the year, Deltek added 450 new customers, a 7% increase over 2007.
- Deltek launched GovStart, a turn-key software solution that enables government contractors to quickly and easily implement a comprehensive business development solution. GovStart is an all-inclusive offering that includes Deltek’s industry-leading GovWin product, hosting, quick-start implementation and ongoing maintenance and support.
- Deltek held its inaugural customer conference for the EMEA region. This exclusive event was created as a forum for Deltek’s growing EMEA customer base to collaborate with each other and learn best practices for managing their project-focused businesses. Attendees joined Deltek executives at the conference to discuss the future product directions for Deltek’s industry-leading Vision and Enterprise Project Management solutions.
- Deltek received CustomerSat’s Achievement in Customer Excellence (ACE) ™ Award for “Customer Support Satisfaction.” This ACE award recognizes Deltek’s industry-leading success and effectiveness in building customer loyalty and delivering a premier customer support experience. This is the second year in a row that Deltek has received this award for outstanding customer service.
