CIMdata PLM Industry Summary Online Archive
11 September 2007
Financial News
ESI Group Sales for the First Half of 2007 - Organic growth of +10% at constant exchange rates - Confirmation of the upturn in Services activity
ESI Group announced its consolidated sales for its first half to 31st July 2007.
For Changes in quarterly and half-year sales chart, please visit http://www.esi-group.com/Members/crr/CA-S107angFinal.html
First-half sales totalled 27.6 million euros, up +10.0% at constant exchange rates.
Licences sales for the six months were up +7.9% at constant exchange rates, representing an acceleration in growth for Licences activity in volume compared to the first half of last year (+5.3%).
The substantial acceleration in Services growth over the second quarter (+25.5% at constant exchange rates) has resulted in half-year growth of +17.2% at constant exchange rates and confirms the anticipated upturn in Services activity. This improvement was recorded thanks to the amplification of high value-added projects, notably in the Automotive and Aeronautical domains.
Alain de Rouvray, ESI Group's Chairman and CEO, says: "The relatively good performance of Licences activity in volume and the substantial growth recorded by Services activity have enabled us to report first-half sales, excluding exchange rate effects, that are broadly in line with our expectations. Activity was particularly dynamic in North America despite strong local competition."
Repeat business ratio for Licences sales reached 72%, versus 79% for the same period of 2006, but should be seen in context at this stage of the year and was impacted by a substantial exchange rate effect in American and Asian areas, which represented 65% of first-half Licences sales.
Up 4 points to 28%, the percentage of New Business confirms the surge of emerging countries (China, India), whose clients first and foremost favour "One Time Charge" (OTC) sales rather than yearly rental licences.
Furthermore, increasing market interest in our solutions is shown by the high level of orders booked for emerging products resulting from acquisitions. The integrated packaged Vibro-Acoustics solution VA One © for noise simulation and acoustic comfort, a unique product on this market, that incorporates low, medium and high frequencies, illustrates this success with a strong growth in orders booking.
The percentage of half-year sales recorded from abroad remained stable at 83%. The geographical sales split was as follows: Europe 42%, Asia 42% and America 16%.
Alain de Rouvray concludes: "Our main markets, such as the Automotive and Aeronautical sectors, are facing ever-tighter constraints in terms of production deadlines, manufacturing costs and competitiveness. The substantial upturn in Services activity over our second quarter, which should continue throughout the remainder of the year, confirms increasing market interest for our integrated 2G and 3G solutions and for our high value-added methodological support that most appropriately meets the increasing demands of our industrial corporate clients when it comes to full virtual prototyping and realistic digital simulation."
The company generated sales of €66m in 2006, employs over 600 high-level specialists worldwide covering more than 30 countries. For further information, visit http://www.esi-group.com/ .
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