Sales for the first half of 2008/09
ESI Group (ISIN FR0004110310), a pioneer and world-leading solution provider in virtual prototyping and manufacturing processes, today announces its consolidated sales for its first half to 31st July 2008.
Changes in quarterly and half-year sales
Reminder: figures for this first half were recorded on a constant scope, and therefore reflect purely organic growth. The ESI Group’s inherent seasonal effect means that a substantial proportion of our annual revenue is recorded over the second half of the year.
First-half sales totalled 29.3 million euros, up +9.9% at constant exchange rates.
Licence sales for the six months were up +6.7% at constant exchange rates, a similar trend to the two previous quarters.
Services activity continued to record buoyant growth, recording an increase of +19.8% by volume over the first half of 2008/09 compared to the same period of the previous financial year.
The European zone contributed 46% of consolidated half-year sales, versus 42% in the first half of 2007/08. The contributions of the Asian and American zones, penalised by exchange rate effects, were 40% and 14% respectively over the first six months of the year, versus 42% and 16% a year earlier. Europe’s fine performance, with sales up +13.3% in euros, was associated with the winning of major new contracts, whilst the Asian and American zones recorded significant growth in volume terms, gaining +8.2% and +10.0% respectively.
- Negative exchange rate impact
The negative exchange rate evolution, in particular regarding the US dollar and the Korean won, continued to hardly weigh on real terms growth resulting in a -4% negative impact on the Group’s consolidated half-year activity.
- Evolution of the product mix
As a consequence of the buoyant growth in Services, the product mix evolved significantly in favour of this activity: Services represented 27.3% of consolidated first-half sales this year, versus 24.6% over the first half of 2007/08.
- Increase in repeat business for Licence activity sales
Repeat business for Licence activity sales represented 81% of all Licence sales by volume, versus 72% for the same period of 2007/08.
The Group’s cash position stood at 9.4 million euros at 31st July 2008, following 1.4 million euros worth of share buybacks. The percentage of treasury shares had increased to 7.18% of capital at 31st July 2008.
Alain de Rouvray, ESI Group’s Chairman and CEO, concludes: “The high level of repeat business for Licence sales lays witness to the substantial renewal of licences by our clients, which ensures us good visibility on this activity despite an economic situation that remains turbulent. The continuing and amplified fine performance of Services activity today reflects the gradual change in our model towards increased high added value Services. It confirms our leadership in this domain, with unique know-how and global coverage that meets growing demands by industrial clients to be supported in their understanding and accelerated implementation of multi-domain Simulation Based-Design. This excellent performance of strategic Services is leading to the adoption of new licences and secures the buoyant growth and the strengthening of our software activity.”
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