CIMdata PLM Industry Summary Online Archive
29 April 2013
Financial News
Lectra: First Quarter 2013: Net Income and Free Cash Flow Strongly Positive, Balance Sheet Particularly Solid
Today, Lectra’s Board of Directors, chaired by André Harari, reviewed the unaudited consolidated financial statements for the first quarter of 2013. (Unless stated otherwise, comparisons between 2013 and 2012 are like-for-like.)
Orders for New Software Licenses and CAD/CAM Equipment Weaker than Expected, amid Persistently Sluggish Business Conditions In its February 12, 2013, financial report, the company indicated that economic conditions looked set to remain as weak in 2013 as in 2012, and that the year seemed likely to be both difficult and unpredictable. The reality of the first quarter has confirmed this analysis. Orders for new software licenses and CAD/CAM equipment amounted to €16.2 million, down €2.6 million (-14%) compared with Q1 2012.
Revenues up Slightly thanks to Recurring Revenues Growth, Illustrating the Strength of the Company’s Business Model
Revenues (€48.3 million) were up 2% relative to Q1 2012, and 1% at actual exchange rates. Revenues from new systems sales (€19.5 million) were down €0.9 million (-4%). This decrease is mainly the result of the weak order backlog for new systems at January 1, 2013, and weak sales activity in the first quarter. Recurring revenues (€28.8 million), on the other hand, rose €2.1 million (+8%), resulting from the combination of a 5% increase in revenues from recurring contracts and a 12% increase in revenues from spare parts and consumables. Income from operations before non-recurring items amounted to €3.1 million. It remained stable like for-like (€3.3 million) compared with Q1 2012.
End of Litigation against Induyco: Payment of €11.1 million Received
Lectra received on March 7, 2013, payment of the outstanding €11.1 million which was due by Induyco further to the decision rendered on January 28, 2013, by the Madrid Court of Appeal (see March 7, 2013, press release).
The €11.1 million received results in a non-recurring income of the same amount recorded in the Q1 2013 consolidated financial statements and a net income of €10 million, after a net tax charge of €1.1 million, with no cash disbursement.
Net Income and Free Cash Flow Strongly Positive
Given the non-recurring item of €11.1 million, income from operations was €14.2 million and the operating margin before non-recurring items was 6.4%, down 0.3 percentage points like-for-like.
Net income was €12.2 million. Net income before non-recurring items amounted to €2.2 million (-€0.2 million at actual exchange rates compared with Q1 2012).
Free cash flow amounted to €13.2 million. Free cash flow before non-recurring items amounted to €2.1 million (€5.2 million in Q1 2012).
Balance Sheet Particularly Solid
Cash and cash equivalents at March 31, 2013, totaled €28.5 million and financial borrowings were down to €1 million corresponding to public, interest-free advances intended to help finance research and development programs.
As a result, the net cash position was positive at €27.6 million (€14.2 million at December 31, 2012) and consolidated shareholders’ equity amounted to €77.5 million (€65 million at December 31, 2012).
Progress in the Company’s Transformation Plan
At the end of 2011, despite the prevailing economic conditions, the company decided to accelerate its transformation over the period to 2015, giving precedence to its long-term strategy rather than to short-term profitability.
This three-point plan comprises: a major recruitment plan devoted to strengthening sales and marketing teams, which will grow from 220 people at the end of 2011 to 330, and from 16% to 22% of the total workforce (with a doubling of the number of sales people); the addition of 40 engineers to the R&D teams in Bordeaux-Cestas (France) bringing the total number to 260; and accelerated investment in marketing. These investments for the future are fully expensed, while their benefits will only be felt progressively.
Payment of Dividend
Subject to approval by the Ordinary Shareholders’ Meeting of April 30, the dividend of €0.22 per share in respect of fiscal 2012 will be made payable on May 10, 2013.
To view an unabridged version of this press release, visit: http://www.lectra.com/binaries/Lectra_PressRelease_Q12013_tcm31-217469.pdf
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