ESI Group's Revenue for the 4th quarter of 2010/11 totalled 34.9 million euros, up +15.9% in actual terms and +10.4% at constant currency rates compared to the 4th quarter of the previous fiscal year. Reflecting the substantial seasonal effect of the Group’s Licenses activity, the 4th quarter accounted for 41% of overall annual activity.
"I am especially pleased with this outstanding 4th quarter both in terms of Licenses activity and Services activity. Especially, and as we had already seen in previous quarters, New Business continued to improve, to the extent that a growth of more than 30% was achieved over the year. At the same time, our overseas expansion is continuing. The surge in our activity within BRIC countries, and emerging economies in particular, shows the success of our solutions amongst large clients who are facing strong competition and who therefore need to quickly establish themselves on local and global markets. This increase in activity, which has continued to improve for the last three quarters, allows us to anticipate a significant improvement in our annual results compared to those published for 2009/10," said Alain de Rouvray, ESI Group’s Chairman and CEO.
The positive momentum recorded by Licenses activity since the start of the 2nd quarter of 2010/11 was reaffirmed in the 4th quarter, with Licenses revenue totalling 28.5 million euros, up +14.5% in actual terms and +9.2% at constant currency rates. This growth was driven by both increased business in the installed base, which rose by +13.9% to 26.1 million euros and demonstrated the high rate of 95% repeat, and the surge in New Business, which grew by +20.1% to 5.5 million euros.
Services revenue was up +22.8% in actual terms and +16.3% at constant currency rates, totalling 6.5 million euros over the 4th quarter. This strong growth, which contrasts with the more uncertain Services activity seen at the start of the fiscal year, was notably associated with the resurgence in orders, and in particular the marketing of high value-added Services related to our End-to-End Virtual Prototyping solution Licenses.
The Group’s annual revenue totalled 84.2 million euros (+12.1% in actual terms and +6.2% at constant currency rates).
The evolution of the product mix reflects the strategic alignment of our activities and the steady climbing of Licenses activity, which accounted for 73.5% of total Group revenue over the fiscal year, compared to 72.1% the previous year.
Over the year as a whole, Licenses revenue totalled 61.9 million euros, up +14.4% in actual terms and +8.1% at constant currency rates. Business with the installed base increased by +11.2% to 49.6 million euros with a repeat business rate of 91%, compared to 85% in 2009/10. All of the Group’s solutions contributed to this growth in Licenses activity, with a good balance between Virtual Performance and Virtual Manufacturing solutions.
Despite a difficult start to the year, Services revenue rallied and ended up growing by +6.2% in actual terms and +1.4% at constant currency rates, reaching 22.3 million euros over the year as a whole.
Buoyant increase in New Business
New Business recorded buoyant growth of +31.7% to 13.1 million euros, compared to a fall of 7% the previous year. This reflects the intensification in marketing efforts, with the arrival of new clients and sales of new products to existing clients.
Surge in revenue from Asia and emerging countries
The geographical split in activity was as follows: Europe 42%, Asia 36% and the Americas 22% in 2010/2011, versus 45%, 33% and 22% respectively the previous year. This evolution notably reflects the growing success of the solutions marketed by ESI Group in Asia. Activity in emerging countries also recorded very satisfactory growth, with BRIC countries (Brazil, Russia, India and China) now representing 10.2% of revenue (versus 8.6% in FY09). This underlying trend reflects ESI Group’s solid establishment in these fast-growing countries and its ability to accompany major clients through their international expansion and domestic players through their innovation-based development.
Strengthening of key accounts and signing of multiyear contracts
ESI Group has continued to increase its presence amongst key accounts by deploying new solutions and enhancing the solutions already installed. ESI Group’s top 25 clients thus accounted for 44% of total Group revenue in 2010/2011, compared to 41% the previous year.
In particular, at the end of the fiscal year, ESI Group signed two major multiyear contracts – including one renewal – with major European car manufacturers. With visibility of the economic situation still limited, signing of this type of contract, with validity for a number of years, bears witness to the increasing value of virtual prototyping as a source of strategic advantages in the current competitive environment.
- COMET robot machining consortium meets at Fraunhofer
- Registration Opens for 2012 AVEVA World UK User Meeting
- Delcam's new web site for PartMaker CAM system for production machining
- Delcam launches DentSCAN dental scanner
- GE Scientists Decorate the Christmas Tree With 3-D Printed Ornaments
- InventorCAM 2012 makes its debut, reducing cycle times by up to 70% for Autodesk customers, with iMachining
- EDS Technologies Signs MoU With Mar Baselios College Of Engineering
- Delcam's ArtCAM speeds ice bar production
- Rapiscan Uses Autodesk Vault to Effectively Collaborate on Security Products
- SigmaNEST Delivers Results to Tampa Bay Steel