Lectra revenues down 7% in 2012

2012: Financial Results Beat Company Expectations
- Revenues: €198.4 million (-7%)
- Income from operations: €19.8 million (-43%)
- Net income: €13.6 million
- Free cash flow: €11.5 million
- Net cash: €14.2 million
- Dividend: €0.22 per share Q4 2012

Growth in Orders for New Software Licenses and CAD/CAM Equipment

There was no pick-up in the economy in Q4, uncertainties actually increased. Against this difficult background, sales activity finished the year dynamically.

Orders for new software licenses and CAD/CAM equipment (€20 million, surpassing the level for the first three quarters) increased by 34% compared with Q4 2011 (when orders were affected by the accelerated deterioration of the economic environment, falling 34% compared with Q4 2010).

Results Hold up Well

Revenues (€51.1 million) are down 4% (?3% at actual exchange rates). This decline stems from a 14% fall in revenues from new systems sales to €21.2 million. This was partly offset by the confirmation of faster growth in recurring revenues (€29.9 million), rising from 2% in the first half of the year to 4% in Q3 and in Q4. Revenues from recurring contracts (€17.3 million) rose by 7% and those from spare parts and consumables (€12.1 million) by 2%.

Income from operations amounted to €5.1 million, down €3.0 million, while the operating margin decreased by 5.3 percentage points to 10%. At actual exchange rates, income from operations was down €2.5 million and the operating margin decreased by 4.5 percentage points.

Net income (€3.6 million) decreased by €1.2 million at actual exchange rates, compared with Q4 2011. Free cash flow was positive at €5.8 million (€1.4 million in Q4 2011).

2012: An Operating Margin of 10%, Despite Reduced Activity and the Cost of Investments for the Future

Macroeconomic conditions remained persistently weak year-long. Based on this assumption, the company considered in its February 9, 2012 financial report that revenues from new systems sales could fall by around 24%. This would result in total revenues of approximately €190 million for the fiscal year. Income from operations would come to around €15 million, generating an operating margin of approximately 8%, and net income of approximately €10 million. These figures were based on an average exchange rate of $1.30/€1, very close to that for the year ($1.29/€1).

Revenues were ahead of company expectations by €8.4 million, income from operations by €4.8 million and net income by €3.6 million. The operating margin was higher by 2 percentage points. Orders from New Software Licenses and CAD/CAM Equipment Fall by Less than Expected Purchasing decisions remained on hold throughout the year. Orders for new software licenses and CAD/CAM equipment (€76.2 million) were down 6% relative to 2011.