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Lectra remains confident in its medium-term growth prospects
30 Jul '08
5 min read
The order backlog includes €12.3 million for shipment in the second half of 2008 and €3.3 million in 2009 and 2010.
At 65.6%, the overall gross margin decreased by 1.3 percentage points relative to the first half of 2007, stemming primarily from differences in the product mix and the country mix.
Total overhead costs were down 1%. Income from operations amounted to €2.9 million. On a like-for-like basis, income from operations works out to €5.2 million, up €1.8 million (53%).
The operating margin was 2.8% (4.9% on a like-for-like basis, an increase of 1.6 percentage points relative to the first half of 2007).
Free cash flow before non-recurring items (–€0.5 million) represents a €2 million improvement over the €2.5 million negative free cash flow registered in the first half of 2007. Free cash flow was a negative €1.7 million after €1.2 million in non-recurring disbursements.
2008 Outlook:
The company had drawn specific attention, on February 11, 2008, to the difficulty of formulating a view of the outlook, both for 2008 and for the medium term, given the persistent and particularly uncertain macroeconomic conditions.
Since then, these conditions have continued to deteriorate, the economic slowdown has become more pronounced and widespread, and there has been a sharp upsurge in uncertainty.
Moreover, the dollar has fallen even further and once again temporarily crossed the $1.60/€1 threshold on July 15, 2008.
The weakness in orders since the beginning of the year could persist in the second half.
Conversely, an upturn in the environment could trigger a rapid rebound in customer investments. The current lack of visibility therefore makes it impossible to draw precise conclusions regarding sales activity for the second half of the year.
In this context, prudence has compelled the company to consider that the anticipated revenues and income from operations for the current fiscal year communicated on February 11, 2008, will in all likelihood not be realized.
Given the prevailing uncertainty, the company considers that it lacks sufficiently reliable information to formulate new quantified expectations at this time.
The company remains confident in its medium-term growth prospects. The Management Discussion and Analysis of Financial Condition and Results of Operations for the first half 2008 are available at www.lectra.com. Q3 2008 results will be published on October 28, 2008, after the close of Euronext Paris.
With more than 1,500 employees worldwide, Lectra is the world leader in software, CAD/CAM equipment and related services dedicated to large-scale users of textiles, leather and industrial fabrics.
Lectra addresses a broad array of major global markets including fashion (apparel, accessories, and footwear), automotive (car seats and interiors, airbags), and furniture, as well as a wide variety of other industries, such as the aeronautical and marine industries, wind power, etc.
At 65.6%, the overall gross margin decreased by 1.3 percentage points relative to the first half of 2007, stemming primarily from differences in the product mix and the country mix.
Total overhead costs were down 1%. Income from operations amounted to €2.9 million. On a like-for-like basis, income from operations works out to €5.2 million, up €1.8 million (53%).
The operating margin was 2.8% (4.9% on a like-for-like basis, an increase of 1.6 percentage points relative to the first half of 2007).
Free cash flow before non-recurring items (–€0.5 million) represents a €2 million improvement over the €2.5 million negative free cash flow registered in the first half of 2007. Free cash flow was a negative €1.7 million after €1.2 million in non-recurring disbursements.
2008 Outlook:
The company had drawn specific attention, on February 11, 2008, to the difficulty of formulating a view of the outlook, both for 2008 and for the medium term, given the persistent and particularly uncertain macroeconomic conditions.
Since then, these conditions have continued to deteriorate, the economic slowdown has become more pronounced and widespread, and there has been a sharp upsurge in uncertainty.
Moreover, the dollar has fallen even further and once again temporarily crossed the $1.60/€1 threshold on July 15, 2008.
The weakness in orders since the beginning of the year could persist in the second half.
Conversely, an upturn in the environment could trigger a rapid rebound in customer investments. The current lack of visibility therefore makes it impossible to draw precise conclusions regarding sales activity for the second half of the year.
In this context, prudence has compelled the company to consider that the anticipated revenues and income from operations for the current fiscal year communicated on February 11, 2008, will in all likelihood not be realized.
Given the prevailing uncertainty, the company considers that it lacks sufficiently reliable information to formulate new quantified expectations at this time.
The company remains confident in its medium-term growth prospects. The Management Discussion and Analysis of Financial Condition and Results of Operations for the first half 2008 are available at www.lectra.com. Q3 2008 results will be published on October 28, 2008, after the close of Euronext Paris.
With more than 1,500 employees worldwide, Lectra is the world leader in software, CAD/CAM equipment and related services dedicated to large-scale users of textiles, leather and industrial fabrics.
Lectra addresses a broad array of major global markets including fashion (apparel, accessories, and footwear), automotive (car seats and interiors, airbags), and furniture, as well as a wide variety of other industries, such as the aeronautical and marine industries, wind power, etc.
Lectra
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