ICG Company Procurian Demonstrates Strong Q1 Traction
ICG Group, Inc. (Nasdaq: ICGE) today announced that Procurian continued to make strong progress in the first quarter, signing three contracts that were in late stages of the pipeline at the beginning of the year. Given that these customer signings occurred late in the first quarter, Procurian will not begin to recognize a significant amount of revenue associated with these contracts until the second quarter of 2012.
"Delivering on the promising customer pipeline we described earlier in the year, we are excited to announce that Procurian has formalized long-term relationships with three leading global customers," said Walter Buckley, CEO of ICG. "This progress is a clear endorsement of the value of Procurian's unique offering, which helps its customers drive transformation in their procurement processes and sustainable changes to their cost structures."
As a result of ICG's recent acquisition of MSDSonline, as well as its improved visibility with respect to the remainder of 2012, ICG is increasing its 2012 guidance. ICG now expects to achieve annual core consolidated revenue in the range of $165 million to $175 million, up from its original revenue guidance range of $150 million to $160 million, and expects core consolidated EBITDA in the range of $17 million to $19 million, up from its original EBITDA guidance range of $16 million to $18 million. ICG expects MSDSonline to add approximately $12 million of revenue in 2012 from the date of acquisition through December 31, 2012, excluding the impact of purchase accounting. The majority of the impact of the new contracts at Procurian was already reflected in ICG's initial 2012 revenue guidance range, which was provided in connection with ICG's fourth quarter earnings call.
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