CDC Software expects drop in licensing revenue

CDC Software expects drop in licensing revenue, sounds upbeat note on 4Q deals

• On 2:00 pm EDT, Tuesday October 13, 2009

NEW YORK (AP) -- China's CDC Software Corp. said Tuesday it expects to report at least a 36 percent drop in third-quarter licensing revenue.

The business software developer projected licensing revenue of $7.4 million to $7.6 million, down from $11.9 million a year earlier.

In the year-earlier period, when CDC Software was still a wholly owned subsidiary of CDC Corp., it posted overall sales of $60.5 million, including maintenance, consulting, services and hardware revenue.

The company did not provide a specific outlook for the fourth quarter but sounded an upbeat note. "In fact, we already closed several new deals early into this quarter and remain cautiously optimistic for our prospects," CEO Peter Yip said in a statement.

CDC Software shares rose 6 cents to $8.75 in morning trading.

(This version CORRECTS Corrects year-earlier revenue figures.)