CIMdata PLM Industry Summary Online Archive
15 January 2007
Financial News
Geometric Software Solutions Total Organic Q3 Revenues Increase by 56% YoY; Total Revenue Increase with Modern Engineering Consolidated is 101% YoY
Geometric Software Solutions announced its result for the third quarter of FY 2006-07.
Organic operating revenues for the quarter increased by 7% in US Dollar terms and 3% in Rupee terms as compared to previous quarter. As compared to Q3FY06, operating revenues increased by 40% in Dollar terms and 37% in Rupee terms. EBITDA increased by 13% as compared to Q2, but Operating Profit (PBT less other income) declined by 5%, primarily due to Rupee appreciation and interest on debt to fund the acquisition of Modern Engineering.
Operating revenues including Modern Engineering grew 80% in US Dollar terms and 78% in Rupee terms YoY. EBITDA including Modern Engineering increased by 107% YoY. Modern Engineering was consolidated with Geometric with effect from 1st November 2006. During this two month period Modern contributed USD 5.6 Million in revenue and USD .09 Million in PAT.
Commenting on the results, Dr. Ravi Gopinath, CEO and MD said "We are on track with respect to our plan for organic business in this financial year. With the consolidation of Modern Engineering, Geometric has a significantly enhanced business portfolio and delivery footprint. As we continue the process of business integration we will increasingly capitalize on this. "
The Company, excluding Modern, added 14 new clients in Q3. The business mix has remained the same in comparison with Q2 of FY07. In comparison with Q3 of FY06, products revenue share decreased from 18% to 13% and engineering services has increased from 6% to 10%. European share of business showed a 6% increase over Q2, primarily due to peak load on a European PLM project. Offshore revenue as a percentage of total services revenue remained at 68%. Revenue from software product companies comprised 40% of the total, and industrial customers contributed 47% of revenues.
The Company had 1931 employees on its rolls as of Q3, a 10% increase over Q2. Including Modern, the total number of employees was in excess of 2400. Annualized attrition (excluding Modern Engineering) came down from 23% to 20% from Q2. Utilization including trainees reduced from 87% to 84% and from 92% to 91% excluding trainees. Attrition in Modern Engineering was negligible.
Highlights for the quarter :
Modern Engineering became a subsidiary of Geometric Inc. with effect from 1 st November 2006. For the two months ending December 2006, Modern's operating revenue was USD 5.6 Million and Profit After Tax was USD 0.09 Million. The CAE solutions business in Engineering, introduced in Q2, has seen increased traction particularly among automotive customers in the US and Asia Pacific.
The PLM business recorded an increase in revenue from direct selling to industrial customers and won 3 major projects in Europe. The PLM business also successfully delivered the beta version of a large PLM program for an industrial customer, aimed at reducing design time cycle by over 30%.
Geometric added new service offerings of technical support and documentation to its portfolio of offerings to software product companies. The ODC with a major software product company completed one year of operations and recorded strong growth.
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