CIMdata PLM Industry Summary Online Archive
10 September 2004
Financial News
ESI Group: H1-2004/05 Sales: up 18.7% to € 25,1 m - Significant Progress of Licenses Growth
ESI Group , solution provider in virtual prototyping and manufacturing processes, announced its consolidated sales for the first half of the current fiscal year (ended July 31 2004).
Acquisitions integrated during FY2004/05:
• EASi SW: software business integrated since September 2003
• CFDRC SW: software business integrated since February 2004
Quarterly and first-half sales:
€ 000 |
Q2-2004 |
Q2-2003 |
% change (in real terms) |
H1-2004 |
H1-2003 |
% change (in real terms) |
Licences |
8,472 |
6,778 |
+25% |
19,064 |
14,604 |
+30.5% |
Services and other income |
2,987 |
3,373 |
(11%) |
6,058 |
6,557 |
(7.6%) |
Total |
11,460 |
10,151 |
+13% |
25,122 |
21,161 |
+18.7% |
Financial year ended 31 January
H1-2004/05 sales came to € 25.1 million, up 18.7%. The increase would have been 20.8% at constant exchange rate. Despite an economic slowdown of the service business, first-half organic growth was 3.3% (up 5% in volume and at constant exchange rates) due to the good license sales performance. The seasonal skew of quarterly sales is expected to continue in 2004 as in the previous years.
License sales were up 30.5% and 9.3% at a constant perimeter (10.8% in organic and at constant exchange rates) reflecting a significant improvement in organic growth (vs down 4% in the first half of 2003).
The recent acquisitions boosted the weight of license revenues in total sales automatically to 76% of H1-2004/05 sales, versus 69% in H1-2003/04.License renewal rate remained at a satisfactory level: 83% (vs 85% in H1-2003/04).
Alain de Rouvray, Chairman and CEO, ESI Group, stated: "This is a positive performance in line with our expectations: the integrated acquisitions continue to contribute significantly to total growth, the installed base is very strong and new business is promising as shown by its sharp improvement. The decline in services sales, partly due to the postponed renewal of certain innovative projects in the United States and Europe, was largely anticipated."
Due to the acquisitions, international operations accounted for 84% of first-half sales, versus 80% in the first half of FY2003/04. The geographical breakdown of sales remained roughly the same as last year with 44% for Europe, 40% for Asia and 16% for America. Organic growth was particularly strong in Asia despite a negative currency effect and Germany continued to turn in sharp growth in a still contrasted European environment.
The slight slowdown in the Transportation sector was offset by better-than-expected growth in the Electronics, Defense and Aerospace Industry sectors, reflecting the growing needs for digital simulation in these sectors that contribute to the increased diversification of our business.
Good performance of historic products: The PAM range of products (ESI Group's historic product line) continued to grow at a steady pace with a 7% increase in H1 sales and a 12% increase in licenses revenues. The flagship products PAM-CRASH and PAM-SAFE in particular strengthened their leadership in the safety simulation segment for Transport customers. The current success of the integrated CRASH/SAFE solution is amplified by its enrichment by EASi's multi-trade environment products and strengthens the Group's outlook in this steady growth market.
The available cash stood at € 18 m on 31 July 2004, in line with our expectations.
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