Dec 15, 2010

ESI Group revenue up 15.5% for the 3rd quarter

ESI Group recorded a 15.5% increase in Revenue for the 3rd quarter and during the first 9 months of fiscal year 2010/11 an increase of 9.5% . The company witnessed an Acceleration in the growth of Licenses activity (+24%), Increase in the installed base (+20%) and strong surge in New Business (+59%).

Alain de Rouvray, ESI Group’s Chairman and CEO, declares: “ESI has recorded a good third quarter of fiscal year 2010/11 pursuing the trends observed since the second quarter of the fiscal year. Beyond a sustained growth in the Licenses installed base, amplified by positive foreign exchange rate effects, we are particularly satisfied with the buoyant increase in New Business. Indeed, the acceleration in New Licenses sales shows the increasing appeal of our solutions, which are an essential factor for increasing the competitiveness of manufacturing industries. We are confident that our growth will continue throughout the fourth quarter, which remains our most important quarter due to the strong seasonality effect of our Licensing revenues.”

3rd quarter revenue

Revenue for the third quarter of fiscal year 2010/11 totalled 16.0 million euros, reflecting a purely organic growth of +15.5% in current currency rates and +6.2% at constant foreign exchange rates. The growth in Licenses activity further accelerated, as it was up +23.5% and +12.2% by volume, with revenue totalling 10.6 million euros. It was driven on the one hand by a +19.6% increase in the installed base to 6.4 million euros with a high repeat business rate of 89.2%, and on the other hand by a surge in New Business, which jumped by +59.2% to 2.9 million euros. Pursuing the trend observed since the start of the year, Services activity remained relatively stable, increasing by +2.7% in current currencies to 5.4 million euros but down -3.6% by volume.

9-months revenue

Benefiting from the good 3rd quarter performance, global activity for the first nine months of the year recorded an increase of +9.5% in current currency rates and +3.5% at constant foreign exchange rates. Licenses revenue increased by +14.3% over the first nine months of the year, whilst Services revenue remained stable (+0.7%). New Business recorded buoyant growth, totalling 7.6 million euros (+41.7%), whilst recurrent installed base growth (+8.3%) resulted in a Repeat Business rate of 86.9% for Licenses over the first nine months of the year, compared to 76.9.% over the same period last year.

The evolution in the geographical split in revenues reflects the increasing success of the solutions marketed by ESI Group in Asia, which now represents 43.5% of 9-months activity, +23.4% increase over the period (+11.2% by volume).