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The
Company Behind the Product When it comes to evaluating accounting software, too many evaluators dive right into the product without giving a second thought to the company behind the product. It is not prudent to disregard the stability and future of the accounting software publisher. Customers who have traveled this path before know that when you select an accounting software package, the resulting relationship is akin to a marriage. Once the product is installed, the customer becomes dependent upon the accounting publisher to supply updates for payroll taxes, sales taxes, and depreciation rates. The customer must also rely on the vendor to fix bugs, provide support, and continually enhance the product to run on the latest platforms and technologies. Like it or not, the continued success of the accounting software publisher has a direct bearing on the customer's continued success with the accounting software product. The bottom line is that some accounting software vendors have figured out the magical formula for producing top quality products, successfully distributing those products directly or through a profitable dealer channel, and supporting those products in an timely matter - all while remaining profitable and achieving a high level of customer satisfaction. Those companies that fall into this category should rate higher in your evaluation and selection process. With this in mind, presented below is an brief overview of Navision - the company. About Navision Software Founded in 1985, Navision claims to be a global provider of cost-effective and adaptable integrated business solutions that help companies in their quest to grow. The company claims to have 130,000 customers worldwide, 2,250 partners, and 1,100 employees in 29 countries. In December 2000, Navision Software merged with it's Danish rival - Damgaard. Its shares are listed on the Copenhagen Stock Exchange (CSE: NAVI). The company is headquartered in Vedbaek, Denmark. |
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1.
|
Company
Name |
Navision
US, Inc.
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2.
|
Address,
Phone, Web Address.
|
Navision
US, Inc.
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|
3.
|
Ownership |
Navision
is a public company headquartered in Vedbaek, Denmark. Its shares are
listed on the Copenhagen Stock Exchange
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4.
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Latest
Product Version |
Microsoft Axapta 2.5
|
|
5.
|
List of
all Products Sold by Navision. |
Navision
Attain
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|
6.
|
Navision’s
Key Management:
President and Chief
Executive Officer
President and Chief
Executive Officer
Executive VP, Chief
Financial Officer
Executive VP,
Worldwide Operations
Executive VP,
Corporate Product Officer
Senior Vice
President, Organization and HR
Senior Vice
President, International Sales
Director, Corporate
Infrastructure
Director, Corporate
Communications
US President
US
Director Marketing Comm.
US
Director Application Center |
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|
7.
|
Brief History of
Axapta
|
Axapta was first created in 1983 by brothers Erik and Preben Damgaard in Copenhagen, Denmark. The company claims that from the start, Axapta wanted to create an International product that was integrated, scalable and flexible so that they would be able to build 1 CD for all markets and platforms. It was Erik Damgaard's vision to build a platform that could evolve with technology and market demands.
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|
8.
|
Total
number of Navision customers |
128,000 |
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9.
|
Total number of customers (companies)
currently using the
Axapta product |
22,000 |
|
10.
|
Total number of users (individuals)
using the
Axapta product |
320,000 |
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Financial Highlights and Other Company Highlights: · Navision Software and Damgaard merged on December 21, 2000. Prior to this merger, the two companies were considered competitive rivals. However this merger was a strategic move towards creating a company with the power to achieve a global leading position in the mid-market. · Net revenues grew in 2001 by more than 18% to $175.9 million US (DKK 1,496 million). · Operating income equals approximately 15% of revenues. · In 2001, Excluding Scandinavia, revenue growth in Europe was 32% (up from $68 million US to $90 million US.) · In 2001, Revenues for the United States operations grew by 15%. · License revenue in the fourth fiscal quarter of 2000/2001 grew by 61% (from $42 million US up from $26 million US. · The total combined growth in revenues of Navision Financials/Attain and Microsoft Axapta was 40%. · Cost of revenues equaled 18.0% of revenues compared to the prior year’s 17.5% of revenues. Cost of revenues is primarily comprised of support costs and royalties to subcontractors. · Research and development costs (R&D) as percentage of revenues was equal to 20.9% compared to 21.6% for the prior fiscal year. This is in line with the overall goal of the Group, which is to invest approximately 20% of revenues in R&D. · Sales and distribution costs as a percentage of revenues was equal to 34.8% as compared to 36.5% in the prior year. · Administrative expenses as percentage of revenues equaled 11.0% in fiscal year 2001 compared to 14.2% the prior year. · Cash and cash equivalents at June 30, 2001 was $ 101 million compared to $97 million the prior year.
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Five-Year
Financial Information for Navision
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Financial
Figures |
1996/ |
1997/ |
1998/ |
1999/ |
2000/ |
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Net
revenues |
309,542
|
486,652
|
1,008,484
|
1,260,141
|
1,496,003 |
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Gross
profit |
253,997 |
404,488 |
843,731 |
1,039,173 |
1,226,382 |
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Operating
income before goodwill amortization (EBITA) |
33,663
|
64,369 |
189,998 |
127,431 |
229,278 |
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Income
before financials |
33,277
|
61,107
|
174,353
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102,654
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198,903 |
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Net
income for the year before minority stockholders |
26,408
|
48,257
|
116,927
|
64,601
|
158,839 |
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Extraordinary
income after tax |
1,138
|
(7,106)
|
- |
- |
- |
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Net
income for the year |
43,215
|
41,151
|
121,501
|
64,316
|
158,445 |
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Total
assets |
237,022
|
354,804
|
1,070,915
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1,530,268
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1,701,330 |
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Cash
and securities |
62,415
|
107,531
|
523,114
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821,522
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856,954 |
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Stockholders´
equity |
87,264
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130,116
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695,320
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859,454
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1,018,155 |
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Cash
flow from operating activities |
32,926
|
71,648
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178,415
|
109,604
|
249,338 |
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Cash
flow from investing activities |
(27,306)
|
(40,651)
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(209,344)
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(64,345)
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(204,631) |
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Cash
flow from financing activities |
14,534
|
147 |
447,904
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275,358
|
(6,690) |
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Annual
growth in net revenues (%) |
34.8%
|
57.2%
|
107.2%
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25.0%
|
18.7% |
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Gross
margin (%) |
82.1%
|
83.1%
|
83.7%
|
82.5%
|
82.0% |
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Operating income before goodwill amortization/Net revenues (%)
|
10.9%
|
13.2%
|
18.8%
|
10.1%
|
15.3% |
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Operating
margin (%) |
10.8%
|
12.6%
|
17.3%
|
8.1%
|
13.3% |
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Net
margin (%) |
14.0%
|
8.5%
|
12.0%
|
5.2%
|
10.6% |
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Return
on equity (%) |
84.2%
|
37.9%
|
29.4%
|
8.4%
|
16.9% |
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Equity
ratio (%) |
36.8%
|
36.7%
|
64.9%
|
56.2%
|
59.8% |
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Research
and development costs (DKKt) |
(80,407)
|
(128,125)
|
(193,116)
|
(272,747)
|
(313,330) |
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Research
and development costs/Net revenues (%) (DKKt) |
26.0%
|
26.3%
|
19.1%
|
21.6%
|
20.9% |
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Average
number of employees |
340
|
466
|
774
|
1,074
|
1,112 |
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Net
revenues per employee (DKKt) |
910 |
1,044
|
1,303
|
1,173
|
1,345 |
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|
|
|
|
|
Earnings
per share - EPS (DKK) |
0.92
|
1.68
|
3.79
|
1.81
|
4.41 |
|
Annual
growth in earnings per share (%) |
N/A
|
83%
|
125%
|
(52%)
|
143% |
|
Cash
flow per share - CFPS (DKK) |
1.15
|
2.50
|
5.78
|
3.07
|
6.92 |
|
Book
value per share (DKK) |
3.04
|
4.54
|
22.52
|
24.08
|
28.24 |
|
Market
price per share at June 30 (DKK) |
-
|
-
|
179 |
327 |
189 |
|
Market
price per share/book value per share (DKK) |
-
|
-
|
7.95
|
13.58
|
6.69 |
|
Average
number of shares (thousands) |
28,677
|
28,677
|
30,880
|
35,697
|
36,051 |
Source: http://www.navision.com/hq/view.asp?documentID=877&categoryID=446
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