Y2G Associates, the leading provider of tools, technology and services that improve the performance of software companies worldwide, is reporting that software industry operating performance metrics over the past year and most recent quarters are improving. Cash flow and cash management challenges have driven operational improvements within software companies, while organic growth and valuations of these same companies are gaining at slower rates than previous years. Y2G acknowledges that the industry focus on capital spending and returns on outside investments are significant factors driving the recent consolidation activities within the enterprise software market.
"Over the past year, the decline in cash flow fundamentals, improvements in operating performances and gains in profitability indices are improving at a slower rate than market capital valuations," said David Cahn, CEO, Y2G Associates. "While performance metrics have improved on average in the single digits, capital spending has seen a 60 percent increase, which is fueling a market capitalization growth of approximately 28 percent."
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