Revenue growth for the 1st quarter of 2013/14: +2.0% to €21.6 million (+6.2% at constant currency)

13 June 2013 Paris, France
  • Solid activity
  • Negative currency effect
  • Increasing contribution of emerging countries

Alain de Rouvray, ESI Group’s Chairman and CEO, comments: “ESI Group has delivered a solid first quarter in terms of revenue growth, despite a negative base effect associated with the depreciation of the Japanese yen and exceptional elements recorded over the first quarter of 2012/13. This positive trend is notably reflected through the success of our offer in BRIC countries, as illustrated by the recent signing of a remarkable Joint Venture contract with the Chinese Aerospace Group AVIC-BIAM. This very positive trend in terms of activity in emerging countries lays witness to the relevance of the Group’s strategy to support their transition towards end-to-end virtual prototyping. These factors are reassuring in the context of a macroeconomic situation that has become more difficult again, whilst the increasing complexity associated with globalisation requires the Group’s internal reporting structure and processes to be adapted.”

Revenue growth for the 1st quarter of 2013/14: +2.0% to €21.6 million (+6.2% at constant currency)

Revenue for the first quarter of the current financial year in actual terms totalled €21.6 million, up +2.0% (+6.2% at constant currency) and stable organically on the first quarter of last year. The product mix remained stable compared with last year, with 67% of revenue coming from Licenses and 33% from Services. The substantial increase in activity in BRIC countries (+20%) has continued, with 15.6% of orders over the quarter coming from these countries, versus 13.5% over the 1st quarter of 2012/13. Especially, sales activity in Brazil was up sharply compared to the same period of 2012/13.

Licenses revenues in actual terms totalled €14.6 million, up +1.3% (+6.3% at constant currency) and +0.6% organically (+5.5% at constant currency). Although negatively impacted by exchange rates, the level of Licenses repeat business remained high at 82% of Licenses revenue. (NB: A repeat rate of 96% reported for the same quarter of 2012/13 was above historical trends thanks to a positive impact of exchange rates and exceptional transactions). Licenses New Business was down -14.6%, impacted by a substantial negative base effect associated with the arrival of major new clients in Europe and Asia during the 1st quarter of 2012/13. The installed base, meanwhile, was up +5.3%.

Services revenue in actual terms recorded growth of +3.4% to €7.1 million (+5.8% at constant currency) and -1.3% organically.

The geographical split in activity edged towards the Americas (20% of revenue) and Europe (41%), whilst the weight of the Asia zone (39%) was pushed down by the substantial depreciation of the Japanese yen. In the American zone, activity recorded a buoyant increase of +14.9% in actual terms, reflecting a good base level of activity as well as a slight catch-up effect for Licenses following the slowdown observed over the final quarter of the previous fiscal year.

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