Home / Knowledge / News / Information Technology / Lectra remains confident in its medium-term growth prospects
Lectra remains confident in its medium-term growth prospects
30
Jul '08
The Board of Directors of Lectra, chaired by André Harari, reviewed the consolidated financial statements for the first half of 2008, after a limited review by the Statutory Auditors.

Q2 2008: Orders and Income Decline The macroeconomic environment continued to deteriorate worldwide, and, in this context, orders for new software licenses and CAD/CAM equipment relative to Q2 2008 showed a decline of 26% (€7.8 million) overall compared to Q2 2007.

(Q2 2007 orders comprised the signature of an exceptional €4.2 million contract with a French world leader in luxury goods, for which billing will be spread over the period 2007-2010.) All of the world's regions have been affected by this slowdown.

With an average parity of $1.56/€1, the U.S. dollar was down 14% compared to Q2 2007. This change mechanically reduced revenues by 4% (€2.3 million) and income from operations by €1.3 million.

Q2 2008 revenues amounted to €50.8 million, down 3% relative to Q2 2007. At actual exchange rates they were down 7%. Revenues from new systems sales decreased10%, to €24.6 million, while recurring revenues (€26.2 million) increased 5%.

Income from operations amounted to €1.3 million, down €0.9 million (27%) like-for-like. The operating margin was 2.6%. Net income was €0.9 million, down €1.4 million at actual exchange rates.

Free cash flow was negative at –€0.6 million. There were no non-recurring items. The free cash flow was up by €2.1 million relative to Q2 2007 free cash flow before non-recurring items (–€2.7 million).

First Half of 2008: Growth in Revenues – Income from Operations Improves Sales activity in the first half of 2008 was weak.

A growing number of clients affected by the economic slowdown or concerned about the impact on their own activity postponed their investment decisions in all market sectors and geographical markets.

Overall, orders for new software licenses and CAD/CAM equipment amounted to €41.4 million, down 22% (€11.9 million) relative to the first half of 2007. With an average parity of $1.53/€1, the U.S. dollar was down 13% compared to the first half of 2007. This change mechanically reduced revenues by 4% (€4.6 million) and income from operations by €2.3 million.

Revenues totaled €102.8 million, up 3% like-for-like relative to the first half of 2007. They were down 1% at actual exchange rates. Revenues from new systems sales (€51.2 million) increased by 2%.

Recurring revenues (€51.5 million) increased by €2.2 million overall (4%); this growth, which fell short of the company's expectations of 6–7%, resulted from a rate of cancellations exceeding the statistical record, as a direct consequence of worsening macroeconomic conditions.

Once again, recurring revenues demonstrated, in Lectra's business model, their capacity as a key factor in the company's stability and as a cushion in periods of economic slowdown.

Because first-half 2008 revenues exceed orders booked in the period, the order backlog for new software licenses and CAD/CAM equipment at June 30 (€15.6 million) is down by €4.1 million relative to December 31, 2007.


Must ReadView All

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Top executives
Textile industry

It will take some time for the people to change their buying choices

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search