As you know, Infor is a private company and our financials are not publically available. Yet, given the current state of the economy, I have been asked: “How is Infor doing these days?” So, I’d like to provide you with some insight on the overall state and health of our company. Let me reassure you that your investments in our software, services, and maintenance are safe and secure for the long run.
Infor is built to last.
Infor’s targeted acquisition strategy has been a core component of our historical growth. We have been, and will continue to be, selective about which technology businesses we acquire. We only acquire products and services that offer incremental value to the customers and markets we serve, drive a lower total cost of ownership, or increase our long-term financial viability.
We aggressively built our business and, in less than seven years, now generate more than $2.1 billion in annual sales. By way of comparison, it took both Microsoft and Oracle 17 years to reach the same level.
The results of our growth strategy speak for themselves:
Customer satisfaction is at an all-time high. In December, we won the CustomerSat Achievement in Customer Excellence (ACE) award for high marks in overall customer support. Other winners of the award included Trane, Toshiba, Wells Fargo, and Cessna.
More than 94% of customers renewed their maintenance and support relationships with us this year. This is an exceptional renewal rate and evidence that our customers continue to place value on our support and product deliverables.
During the last four quarters, we “won back” 425 maintenance customers. That’s more than double the previous four quarters. Our ability to win back customers that went off maintenance for awhile is a testament to our compelling product development plans and vision for the future.
Equally important, during the last four quarters we added 2,165 new customers. These companies chose our applications in competitive situations, further validating the strength of our products and company.
Are we financially stable? Absolutely.
We generate significant cash flow and have a solid cash balance. While we have accumulated debt to finance some of our acquisitions, we were fortunate to have financed at the height of the debt markets in 2007, affording us low-interest rates with flexible terms. We are also backed by Golden Gate Capital and Summit Partners, two of the leading private equity funds in the US with over $19 billion of capital under management. Our global scale, leadership position, profitability, current liquidity, and access to additional capital markets make us a viable and a secure partner for the future.
Finally, I believe that being a private company is an advantage for us during these stressful and challenging times. With patient investors and a successful business, we can take a longer term view and do the right thing for our customers and our company.
What can you expect from us?
Two things: Continued innovation and lower total cost of ownership. At our user conference in Las Vegas last fall, we announced an additional $325 million investment over the next four years in our Infor Open SOA technology innovation and modernization program. More specifically, we committed to delivering 19 new interoperable technology components by the end of 2009. This incremental investment has not been affected by the economy, and we are on track to deliver all 19 components as planned. Additionally, we recently released Infor MyDay, the role-based interface that increasingly you will see as part of our solutions.
We’re working hard to drive down your total cost of ownership. As we refine products, we also continue to improve implementation and delivery costs. In addition to Business Editions and new “Software as a Service” offerings, we have launched a Managed Services group that offers multiple ways to lower costs on the deployment and management of your software, including application outsourcing.
In conclusion, as you navigate these turbulent times, I want you to know that Infor is a stable, healthy and innovative business partner that is making long-term investments in your future. You can depend on us, and together we will get through this difficult period.
As always, I appreciate your business and ongoing support.