CIMdata PLM Industry Summary Online Archive
26 July 2012
Financial News
Lectra: First Half 2012
Today, Lectra’s Board of Directors, chaired by André Harari, reviewed the consolidated financial statements for the first half of 2012, after a limited review by the Statutory Auditors.
(Unless stated otherwise, comparisons between 2012 and 2011 are like-for-like.)
Q2 2011: Orders Still Slowed by Persistently Weakened Economic Conditions
Business conditions further weakened in the second quarter of 2012, and economic downturn in many developed and emerging countries. Against this background, customers were increasingly hesitant to place new orders, with orders for new software licenses and CAD/CAM equipment down 20% compared to Q2 2011, at €17.7 million.
Sales of spare parts and consumables were down 2% at €11.2 million, reflecting a contraction in customers’ production volumes.
Revenues (€51.7 million) were down 6% (–1% at actual exchange rates). Revenues from new systems sales (€23.4 million) were down 14% while recurring revenues (€28.3 million) rose 1%.
Income from operations (€5.5 million) was down €3.1 million (–41%) and the operating margin decreased by 5.4 percentage points to 10.6%. At actual exchange rates, income from operations was down €1.9 million (-26%) and the operating margin decreased by 3.6 percentage points.
Net income (€3.6 million) was down €1.5 million (–30%) at actual exchange rates.
The Company’s Transformation Plan is Proceeding as Intended
Despite the prevailing economic conditions, the company has decided to give precedence in 2012 to its long-term strategy rather than to profitability, strengthening its sales and marketing teams and pursuing its steadfast investment in R&D over the period 2012-2013.
This plan is proceeding as intended and its effects will start to be felt in full from 2014 onward, positioning the company to fully realize its growth potential in its most promising geographic markets and market sectors, once the economic crisis is over, whereas the corresponding expenses are accounted for in 2012 fixed overhead costs.
Launch of the New Generation of Vector Cutters
On July 2, Lectra announced the launch of its new generation of Vector automated cutters for fabric as well as composite materials. Lectra has dedicated exceptional resources to its development, giving birth to a complete, integrated and unique offer enabling customers to benefit from better control and optimization of their production, which in turn increases their competitiveness and profitability.
The company had previously launched the new Versalis range of leather cutters for the leather goods industry in mid-2011, for the automotive industry at the end of 2011, and at the beginning of 2012 for furniture.
First-Half 2012: Financial Results Ahead of Company Expectations
Revenues and income hypotheses for the fiscal year formulated by the company on February 9, 2012, assumed that economic conditions would remain as weak as in Q4 2011 until June 30. Its roadmap anticipated, for the first-half, revenues of €95 million and income from operations of €7.2 million.
Orders
Orders for new software licenses and CAD/CAM equipment (€36.7 million) are down 18% relative to first-half 2011.
They increased by 8% in North America but were down 30% in South America, making a decline of 5% for the Americas as a whole. Orders fell by 14% in Europe, and by 34% in the Asia-Pacific region; they rose 16% in the rest of the world (Northern Africa, South Africa, Turkey, the Middle East, etc.).
Orders in emerging countries fell by 13%, though they remain predominant with 54% of total orders. Orders in developed countries were down 22% and represent 46% of total orders. The decline in orders affected all market sectors: orders were down 16% in fashion, 19% in automotive, 20% in furniture, and 18% in the other industries.
Revenues
First-half 2012 revenues (€99.5 million) were down 6% like-for-like (–3% at actual exchange rates). Revenues from new systems sales (€43.6 million) were down 15% and represented 44% of total revenues (48% in 2011). Recurring revenues (€55.9 million) increased €1.1 million (+2%) resulting from a 4% increase in recurring contracts, while revenues from spare parts and consumables remained stable.
The order backlog for new software licenses and CAD/CAM equipment at June 30, 2012 was down €2.2 million relative to January 1, at €8.3 million.
Income from Operations and Net Income
The overall gross profit margin worked out to 72.6%. Like-for-like, it came to 72%, up 1.6 percentage points relative to first-half 2011 (70.4%). This increase results from a combination of the change in product mix and the increased gross profit margin on all product lines.
Income from operations (€9.3 million) decreased €5.1 million (–40%) and the operating margin (9.4%) decreased 4.5 percentage points. At actual exchange rates, the decline was €3.5 million (–28%) and 3.2 percentage points.
Net income (€6.3 million) decreased 29% at actual exchange rates. Net earnings per share on basic capital were €0.22 and on diluted capital €0.21 (€0.31 and €0.30 in first-half 2011).
To read an unabridged version of this press release, visit: http://www.lectra.com/binaries/Lectra_PressRelease_FH2012_tcm31-204440.pdf
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