CIMdata PLM Industry Summary Online Archive
9 May 2007
Financial News
CENIT's Highly Successful Start in 2007
CENIT started 2007 with an extremely successfully first quarter, essentially influenced by the development of their software business. In the meantime, 19% of the total revenue is achieved through the sales of CENIT software. At the same time, the hardware sales dropped as expected by 62% to 1.6 million € (2006: 4.6 million €), thus enabling CENIT to take a decisive step towards their goal of a massive development of their software business. As a result, the EBIT margin improved by 13.6% in 2006 to over 17% in the first quarter of 2007.
In the first quarter, CENIT achieved consolidated sales of 17.6 million € (2006: 19.2 Mio. € /-9). The decline in sales can be attributed to the hardware business. The gross profit thus increased by 5% to 15.6 million € (2006: 14.8 million €). The EBITDA achieved 3.3 million € (2006: 2.9 million € /3%). The result of the operational business operations before interest and taxes (EBIT) rose in the reporting period from 2.6 million € in 2006 by 16% to 3.0 million. The EBT (result before taxes) was 3.1 million € (2006: 2.4 million € /30%) and the consolidated result in the first quarter is 2.0 million € (2006: 1.97 million €). The group EPS (earnings per share) was 0.24 € (2006 adjusted: 0.23 €), showing that CENIT started the year on an extremely positive basis.
This very favorable growth in earnings is positively affecting the group's financial standing. At the balance sheet date, the equity capital is 26.4 million € (2006: 24.3 million €) and the equity ratio is 68% (2006: 62%). The balance of bank deposits and securities of the current assets is 20.6 million € (2006: 18,6 Mio. €) at the balance sheet date. The operational cash flow is 3.4 million € (2006: 2.2 million €) and the free cash flow reached 2.0 million € (2006: 1.3 million €).
Breakdown of Revenue
The sales volume with CENIT Software increased by 9% to 3.3 million €, meaning that 19% of the total revenue was achieved with CENIT's own software. In the previous year it was around 16% of the total revenue, with 3.0 million €. Business with other vendors' software also increased by 6.2% to 1.6 million € (2006: 1.5 million €). The sales volume in the Services sector again rose by 8.5% to 11.0 million € (2006: 10.1 million €). Hardware business dropped as expected significantly by 62% to 1.6 million € (2006: 4.6 million €).
Order Situation
The orders balance as of March 31, 2007 in the group is 27,7 million € (12/2006: 18,2 million €) and the incoming orders amount to around 31,7 million € (2006: 31,2 million €). The share of new customers increased in total to 3% in the first quarter.
Prospects
CENIT is aiming at increasing the total revenue share of proprietary software by up to 30% over the next three years. Based on this successful start to the fiscal year 2007, we are confident to continue the tendencies in the software business. A high workload in the consulting business and the sustained positive economic development support our positive expectations for 2007. We are underscoring our reputation in the aerospace industry through the foundation of a subsidiary in Toulouse and expect this to yield additional positive impulses in the consulting business. The international character of CENIT's business is also increasing in significance through the further consistent development of the subsidiaries in the US and Romania. Given our optimized product portfolio and our competitive range of consulting services, we are confident that CENIT will also profit from the general economic growth.
You can find the complete 3-Months Report under: http://www.cenit.de/cenit.php?areaID=3&documentID=14&RECareaID=&RECdocument
ID=&REClanguageShort=&field=&languageShort=eng.
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