Lectra revenues down 7% in 2012

The decline in orders stemmed primarily from the automotive market (?18%). In fashion and furniture, orders were up 3% and 11% respectively. These markets accounted for 37%, 48%, and 8% respectively of the total amount of orders. Orders in the other industries, which contribute 7% of the total, were down 16%.

Strong Growth in North America – Emerging Countries Remain Predominant The situation remains uneven in geographic terms. Orders booked in North America increased by 25%—a remarkable performance. Orders fell by 2% in Europe, 8% in South America and 29% in the Asia-Pacific region. Emerging countries, with orders down by 5%, remained predominant with 54% of total orders, whereas in developed countries orders fell by 8%.

Fall in Revenues from New Systems Sales Was Partly Offset by Growth in Recurring Revenues, Illustrating the Strength of the Company’s Business Model

Revenues for 2012 (€198.4 million) were down 7% (4% at actual exchange rates) compared with 2011. They grew by 20% in 2010 then by 10% in 2011, following sharp falls in 2008 and 2009. Revenues increased by 16% in North America, but fell 5% in Europe, 17% in South America and 26% in the Asia-Pacific region. These four regions accounted for 21%, 47% (including 10% for France), and 5% and 21% respectively of total revenues. Revenues from the rest of the world (6% of total Group revenues) increased by 18%.

Revenues from new systems sales (€83.7 million) decreased by 17%, while recurring revenues (€114.7 million) increased by €3.4 million (+3%). The order backlog at December 31, 2012 increased by €1.6 million relative to January 1, to €12.1 million.

Income from operations (€19.8 million) decreased by €12.5 million (–43%). At actual exchange rates, it decreased by €9.5 million (–32%).

The operating margin was 10%, down 5.5 percentage points like-for-like compared with 2011 (4.2 percentage points at actual exchange rates). Investments for the future linked to the transformation plan (€6.6 million, fully expensed) have accounted for 3.3 percentage points in the reduction of the operating margin. The operating margin is almost double its pre-crisis level (5.2% in 2007), despite a significant fall in revenues.

Net income was €13.6 million (a net margin of 6.9%), representing a fall of 30% at actual exchange rates.

Lectra