Today, Lectra's Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2017. Audit procedures have been performed by the Statutory Auditors. The certification report will be issued at the end of the Board of Director's meeting of February 27, 2018.
(Comparisons between 2017 and 2016 are like-for-like, unless stated otherwise).
Q4 2017: Strong growth in income from operations, on a like-for-like basis - particularly high free cash flow
Q4 orders for new systems (€32.9 million) were 3% lower (-€0.9 million) than those booked in Q4 2016. Orders in previous quarters were €32.3 million, €32 million and €26.5 million respectively in Q1, Q2 and Q3 2017. In Q4 2016, orders for new systems were €35.2 million, the Company's highest ever quarter for new systems orders.
Revenues (€71.5 million) were up 7% (+3% at actual exchange rates).
Income from operations (€10.2 million) was up 13% like-for-like (-4% at actual exchange rates). The operating margin (14.3%) was up 0.8 percentage points like-for-like but down 1.1 percentage points at actual exchange rates.
Currency changes mechanically decreased revenues by €3.1 million (-4%) and income from operations by €1.9 million (-16%) at actual exchange rates compared to like-for-like figures.
Net income (€9.2 million) was up €1.3 million (+16%) at actual exchange rates.
Free cash flow amounted to €14 million (€7.6 million in Q4 2016). This includes receipt of €6.3 million relating to the balance of the 2013 French research tax credit (in 2016, the balance of the 2012 French research tax credit was received in Q3).
2017: Earnings in line with the Company's objectives
Revenues totaled €277.2 million, up 8% relative to 2016 and income from operations reached €39.3 million, up 10%.
These results fall within the range of the objectives for revenues and income from operations communicated on February 9, 2017. They are a new historic record.
Strong growth in orders for CAD/CAM equipment and software
Orders for new systems (€123.7 million) were up 8% relative to 2016. Orders for new CAD/CAM and PLM software licenses increased by 14%, orders for CAD/CAM equipment and accompanying software by 9%, and orders for training and consulting decreased by 2%. Excluding FocusQuantum, orders for new systems increased by 15%.
At the same time, in 2017 the Company proceeded with its first sales of software with a Software-as-a-Service (SaaS) model, to a deliberately limited number of customers, in selected test countries. These sales correspond to total annual subscriptions of €0.3 million. If they had been made in the form of perpetual licenses, they would have represented an additional €0.6 million in orders for CAD/CAM and PLM software licenses.
Orders increased in all regions: by 14% in the Americas, 11% in Europe, 2% in Asia-Pacific, and 20% in the rest of the world.
Orders increased by 15% in the fashion and apparel market; they decreased by 1% in the automotive market; and increased by 19% in the furniture market and by 1% in other industries.
The Company considers it has strengthened its competitive position in most of its market sectors and geographic markets.
Revenues and earnings up sharply
Revenues were up 8% like-for-like and 7% at actual exchange rates. Revenues from new systems sales (€123.1 million) increased by 10% and recurring revenues (€154.1 million) increased by 6%.
Income from operations increased by 10% (+5% at actual exchange rates). The operating margin was 14.2%, up 0.3 percentage points but down 0.1 percentage points at actual exchange rates.
Net income amounted to €29.3 million, up €2.6 million (+10%) at actual exchange rates, and free cash flow amounted to €33.2 million, up €9.4 million.
A zero-debt Company, a particularly robust balance sheet
At December 31, 2017, consolidated shareholders' equity amounted to €151.2 million (€132.6 million at December 31, 2016), the highest level ever.
The Company has been debt free since March 31, 2015. Cash and cash equivalents, and the net cash position, totaled €98.1 million, up sharply compared to December 31, 2016 (€75.7 million). This is also a record level, which will enable the Company to self-finance its internal and external development.