Cdc Corp. (MM) (NASDAQ:CHINA)
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From Jul 2019 to Jul 2024
CDC Corporation (NASDAQ: CHINA), a leading global enterprise software
and new media company, today announced that, given the current market
environment, CDC Software has filed to formally withdraw its
registration statement on Form F-1 previously submitted to the United
States Securities and Exchange Commission with respect to the planned
initial public offering of CDC Software common shares.
“In consultation with our underwriters and
members of the CDC Corporation Board of Directors, we have decided to
withdraw the IPO of CDC Software at this time,”
said Peter Yip, CEO of CDC Corporation. “The
capital markets are clearly strained and we have to focus exclusively on
improving core operating metrics, generating cash from operations, and
preserving cash. We cannot be distracted from these important goals by
the effort and expense required for an initial public offering.”
As a result of this decision, as well as other planned management
changes, Eric Musser, formerly the president and CEO of CDC Software, is
leaving the company to pursue other business interests. In addition,
Michael Latimore, formerly the chief financial officer of CDC
Corporation, has also left the company to pursue other opportunities. He
will continue to work at CDC until the end of July and has agreed to
provide consulting services to the company on a part-time, as-needed
basis. The company has also commenced a search for a CFO for CDC
Corporation.
“Our exclusive focus today is to improve our
operations and business fundamentals, primarily in the areas of cash
generation and profit margins,” added Yip. “As
a result of our decision to withdraw the planned IPO, as well as the
execution of a new business model, we have realigned our executive
management. This realignment made good business sense since it will
enable us to promote further efficiencies within all of the CDC
divisions, and ultimately, help us maximize shareholder value. At this
time, it simply does not make sense to have a CEO at our CDC Software
division. That is why I am very pleased with the current, revised
organizational structure.
“The team we now have in place has been
responsible for shortening quarterly reporting schedules, accelerating
the integration of past acquisitions, including standardizing the
entities on a common IT system, reorganizing our Global Business
Services Group and identifying and implementing the recent cost-cutting
moves,” said Yip.
“We believe that a key part of our future
success will be to continue to align ourselves as a strategic technology
partner for our clients by protecting their IT investments now and into
the future,” Yip added. “We
are committed to delivering best-of-breed technology and functionality.
I have been personally meeting with several of our existing customers
and prospects as well as major partners in key markets around the world
over the past year. I plan to continue this effort since I have received
very positive feedback from them on our strategy. We plan to enhance our
role as a vital partner to customers by helping them better manage their
operations at optimal efficiency in this challenging environment brought
about by a difficult credit market, and rising fuel, transportation and
commodity costs. We plan to accomplish this by using a three-pronged
approach. First, we expect to continue to enhance our customers’
existing strategic applications in Customer Relationship Management
(CRM), Global Manufacturing Operations Management (GMOM), Enterprise
Resource Planning (ERP), and Supply Chain Management (SCM). Secondly, we
intend to leverage our assets to bring new products to market quickly.
Finally, we plan to capitalize on leading partnerships to increase our
customers’ return on IT assets.”
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise
software applications and services, CDC Games focused on online games,
and China.com focused on portals for the greater China markets. For more
information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
About CDC Software
CDC Software, The Customer-Driven Company™,
is a provider of enterprise software applications designed to help
organizations deliver a superior customer experience while increasing
efficiencies and profitability. CDC Software's product suite includes:
CDC Factory (manufacturing operations management), Ross ERP (enterprise
resource planning) and SCM (supply chain management), CDC Supply Chain
(supply chain management, warehouse management and order management),
Pivotal CRM and Saratoga CRM (customer relationship management), CDC
MarketFirst (marketing automation and lead management), Respond
(customer complaint and feedback management), c360 CRM add-on products,
industry solutions and development tools for the Microsoft Dynamics CRM
platform, Platinum HRM (human resources) and business analytics
solutions.
These industry-specific solutions are used by more than 6,000 customers
worldwide within the manufacturing, financial services, health care,
home building, real estate, wholesale and retail distribution
industries. The company completes its offerings with a full continuum of
services that span the life cycle of technology and software
applications, including implementation, project consulting, outsourced
business services, application management and offshore development. CDC
Software is the enterprise software unit of CDC Corporation (NASDAQ:
CHINA) and is ranked number 12 on the MBT 2007 Global 100 List of
Enterprise and Supply Chain Management Application vendors. For more
information, please visit www.cdcsoftware.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding our expectations
regarding our business and strategic focus, as well as the continuation,
success and effects thereof, the continuation of service or employment
of any of our current or former officers or employees, our efforts to
remain efficient and maximize shareholder value, our beliefs regarding
the key parts for our future success and our ability to successfully
undertake this strategy, our beliefs regarding the ability of our
solutions to help our customers achieve their goals, our ability to
market enhanced solutions and functionality to customers, our beliefs
regarding our past and present cost savings initiatives, our belief in
our need to focus on improving core operating metrics, generating cash
from operations, and cash preservation, our ability to help protect
customers IT investments now and into the future, our ability to enable
our customers to manage their operations at optimal efficiency during
this challenging environment, our plans to execute our strategy by
taking a three pronged approach and the effectiveness thereof, our
ability to continue to perpetually enhance our customers’
existing strategic applications in Customer Relationship Management
(CRM), Global Manufacturing Operations Management (GMOM), Enterprise
Resource Planning (ERP), and Supply Chain Management (SCM), our ability
to leverage our assets to bring new products to market quickly and our
plan to capitalize on leading partnerships and future acquisitions to
increase our customers’ return on IT assets,
and other statements that are not historical fact, the achievement of
which involve risks, uncertainties and assumptions. If any such risks or
uncertainties materialize or if any of the assumptions proves incorrect,
our results could differ materially from the results expressed or
implied by the forward-looking statements we make. These statements are
based on management's current expectations and are subject to risks and
uncertainties and changes in circumstances. There are important factors
that could cause actual results to differ materially from those
anticipated in the forward looking statements, including the following:
(a) the ability to realize strategic objectives by taking advantage of
market opportunities in targeted geographic markets; (b) the ability to
make changes in business strategy, development plans and product
offerings to respond to the needs of current, new and potential
customers, suppliers and strategic partners; (c) the effects of
restructurings and rationalization of operations; (d) the ability to
address technological changes and developments including the development
and enhancement of products; (e) the entry of new competitors and their
technological advances; (f) the need to develop, integrate and deploy
enterprise software applications to meet customer's requirements; (g)
the possibility of development or deployment difficulties or delays; (h)
the dependence on customer satisfaction with the company's software
products and services; (i) continued commitment to the deployment of the
enterprise software solutions; (j) risks involved in developing software
solutions and integrating them with third-party software and services;
(k) the continued ability of the company's enterprise software solutions
to address client-specific requirements; (l) demand for and market
acceptance of new and existing enterprise software and services and the
positioning of the company's solutions; (m) the ability of staff to
operate the enterprise software and extract and utilize information from
the company's enterprise software solutions; (n) the continued
cooperation of our strategic and business partners; (o) risks relating
to economic conditions and other matters beyond our control; (p) the
risk that the preliminary financial results provided herein could differ
from our actual results of operations and financial condition; and (q)
the continued strength of revenues from our installed base customers..
Further information on risks or other factors that could cause results
to differ is detailed in filings or submissions with the United States
Securities and Exchange Commission made by CDC Corporation in its Annual
Report for the year ended December 31, 2007 on Form 20-F filed on June
30, 2008. All forward-looking statements included in this press release
are based upon information available to management as of the date of the
press release, and you are cautioned not to place undue reliance on any
forward looking statements which speak only as of the date of this press
release. The company assumes no obligation to update or alter the
forward looking statements whether as a result of new information,
future events or otherwise.