Interviews
News Flash
Lectra remains confident in its medium-term growth prospects
03 May '08
3 min read
Because Q1 2008 revenues exceed orders booked in the period, the order backlog for new software licenses and CAD/CAM equipment at March 31 (€15.4 million) is down by €4.4 million relative to December 31, 2007.
Financial Performance Improves
Income from operations before non-recurring items amounted to €1.6 million, up €2.7 million like-for-like, compared to a loss on operations of €0.1 million in Q1 2007. The operating margin (3.1%) increased 5.1 percentage points.
Net income was €0.6 million, up €0.4 million at actual exchange rates compared to Q1 2007. Free cash flow before non-recurring items in the quarter amounted to €0.1 million, taking into account the €1.7 million increase in working capital requirement. Free cash flow was a negative €1.1 million after €1.2 million in non-recurring disbursements.
2008 Outlook
In discussing the outlook for its activity in the press release dated February 11, 2008, the company drew particular attention to the difficulty of making forecasts for 2008 and for the medium term, in the present highly uncertain macroeconomic conditions.
As of there has been no improvement in these conditions in fact, the dollar has fallen even further, with a parity that recently crossed the $1.60 / €1 threshold—and great uncertainty continues to prevail.
Although orders booked in the first quarter are lower than expected, no conclusions can be drawn from this in regard to sales activities over the coming quarters, since an improvement in the business environment could translate into a rapid upturn in investment by our clients.
Conversely, a deterioration would lead to persistent weakness in orders. Meanwhile, the further fall of the dollar could persist. As indicated on February 11, 2008, a fall in the dollar of $0.05 / €1 for the fiscal year 2008 from the average $1.50 / €1 parity on which the outlook for the current year was based would result in a mechanical decrease of €2.5 million in revenues and €1.2 million in income from operations.
Financial Performance Improves
Income from operations before non-recurring items amounted to €1.6 million, up €2.7 million like-for-like, compared to a loss on operations of €0.1 million in Q1 2007. The operating margin (3.1%) increased 5.1 percentage points.
Net income was €0.6 million, up €0.4 million at actual exchange rates compared to Q1 2007. Free cash flow before non-recurring items in the quarter amounted to €0.1 million, taking into account the €1.7 million increase in working capital requirement. Free cash flow was a negative €1.1 million after €1.2 million in non-recurring disbursements.
2008 Outlook
In discussing the outlook for its activity in the press release dated February 11, 2008, the company drew particular attention to the difficulty of making forecasts for 2008 and for the medium term, in the present highly uncertain macroeconomic conditions.
As of there has been no improvement in these conditions in fact, the dollar has fallen even further, with a parity that recently crossed the $1.60 / €1 threshold—and great uncertainty continues to prevail.
Although orders booked in the first quarter are lower than expected, no conclusions can be drawn from this in regard to sales activities over the coming quarters, since an improvement in the business environment could translate into a rapid upturn in investment by our clients.
Conversely, a deterioration would lead to persistent weakness in orders. Meanwhile, the further fall of the dollar could persist. As indicated on February 11, 2008, a fall in the dollar of $0.05 / €1 for the fiscal year 2008 from the average $1.50 / €1 parity on which the outlook for the current year was based would result in a mechanical decrease of €2.5 million in revenues and €1.2 million in income from operations.
Lectra
Popular News
Leave your Comments
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
