CIMdata PLM Industry Summary Online Archive
10 June 2004
Financial News
ESI Group Q1 2004 sales up 24%
ESI Group announced its consolidated sales for the first quarter of the current fiscal year (three months ended April 30 2004).
Quarterly sales
€ ‘000 |
Q1-2004 |
Q1-2003 |
Change as a % |
Licences |
10,592 |
7,826 |
+35% |
Services and other revenues |
3,070 |
3,185 |
- 4% |
Total |
13,662 |
11,010 |
+24% |
Financial year to 31 January
Consolidation date of new acquisitions:
EASi SW: consolidated since September 2003,
CFDRC SW: consolidated since February 2004.
Q1-2004 sales came to € 13.7m, up 24% from Q1-2003. Q1 sales were positively affected by acquisitions, which accounted for 17% of sales growth, despite a negative currency effect of -3%, and by a slight transfer effect from the previous quarter. Organic growth amounted to 7% (including 12% for license revenues), versus a 2% drop in Q1-2003. This growth amounted to 10% at constant perimeter and exchange rates, compared with 4% in Q1-2003. As of 30 April 2004, sales generated abroad accounted for 84% of total sales.
The seasonal skew of quarterly sales is expected to continue in 2004 as in the previous years.
In line with the end of FY2003 trends and under the impact of the recent acquisitions, the breakdown of sales between license and service revenues continued to shift in favor of licenses, which recorded +35% growth to € 10.6 million and now account for 78% of total sales, compared with +22% for services. The license renewal rate (excluding M&A and maintenance) is 90%, reflecting an excellent performance of the installed base.
License revenues improved organically in each geographical target zone. Consolidated Q1 sales broke down as follows: Europe: 39%; Asia: 45%; and America: 16%.
Stability of the Service business (down -1% at constant perimeter and exchange rates) reflected the absence of a significant take-off in research projects, particularly in the United States, amplified by the negative impact of exchange rates.
Alain de Rouvray, Chairman and CEO of ESI Group, stated: "Sales in the first quarter of FY2004/05 confirmed our cautiously optimistic forecast that business is on the upturn, expecting a double-digit growth, while we will remain focused on profitability restoration."
The company had a net cash of € 22.5m at 30 April 2004.
For further information, visit http://www.esi-group.com
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