CDC Software Files to Formally Withdraw Its Planned Initial Public Offering
17 July 2008 - 9:30PM
Business Wire
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.
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