Lectra registers record financial performance in 2010
Lectra's Board of Directors, chaired by André Harari, reviewed the consolidated financial statements for the full year 2010. Audit procedures have been applied to these financial statements; the statutory auditors' certification report will be issued after the Board of Directors meeting on March 1, 2011.
Financial Results Rise Sharply, Exceeding the Company's Expectations
Orders for new software licenses and CAD/CAM equipment (€22.1 million) were up 18% like-for-like and 24% at actual exchange rates compared to Q4 2009.
As forecast, the rise was more moderate than the increase registered in the first nine months of 2010 (+69%), Q4 2009 orders had already rebounded by 70% relative to the average for the first three quarters of 2009.
Revenues totaled €50.3 million, up 13% relative to Q4 2009—up 18% at actual exchange rates.
Revenues from new systems sales (€22.6 million) were up 23%. Recurring revenues (€27.7 million) rose by 6%, which represents both a 4% decrease in revenues from recurring contracts and a 25% increase in revenues from spare parts and consumables.
Income from operations before non-recurring items amounted to €6.3 million.
Revenues and income from operations before non-recurring items exceed by €4.3 million and €1.9 million, respectively, the latest expectations, twice revised upward, which were published on October 28, 2010.
At 12.4%, the operating margin before non-recurring items increased by 4.5 percentage points.
The new initiatives to optimize the company's resources add up to a non-recurring charge of €1.1 million. Consequently, after accounting for non-recurring charges, income from operations amounted to €5.2 million.
Net income was €3.6 million – up €3 million at actual exchange rates.
Cash Flow at an Exceptionally High Level
Including the €15.1 million received on October 7 from calls on the bank guarantees relating to the Induyco litigation, free cash flow was exceptionally high, at €22.2 million.
On the strength of its technology and service offer, the company benefited fully from improving macroeconomic conditions in most of its geographies and market segments.
Emerging Countries Have Rebounded Faster and are close to their Pre-Crisis Levels
Overall, orders for new software licenses and CAD/CAM equipment (€78.7 million) are up 51% like-for-like relative to 2009. Orders for new software licenses increased by 34%, and those for CAD/CAM equipment were up 60%.
Despite this sharp rise, orders are still down 30% compared to 2007, the last year before the onset of the crisis.
Orders booked in the Asia-Pacific region jumped 100% (123% in China); in the Americas they rose 44%; and they rose 27% in Europe, where certain countries are still suffering the effects of the crisis. Overall, growth was driven by the emerging countries, where orders now only lag behind their 2007 levels by 10%. By contrast, in developed countries as a whole, orders still lag behind 2007 levels by 40%.
All market sectors fashion, automotive, furniture, and other industries contributed to this rebound in orders. The automotive sector registered the strongest upturn, with an increase of 115%.
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