ESI Group: Revenue for the 1st quarter of 2016 up 13.7%
May 26 2016 - 12:30PM
Business Wire
A solid and balanced growth
- Ongoing commercial momentum
- Strong growth in New Business
Licenses and Engineering studies
- Contribution of acquisitions,
particularly ESI ITI GmbH
Regulatory News:
Alain de Rouvray, ESI Group’s (Paris:ESI) Chairman and CEO,
comments: "The sustained growth recorded over the first quarter of
2016 confirms the Group’s commercial momentum. That impetus has
been boosted by our recent acquisitions in the field of systems
modelling, big data and machine learning, which dramatically
increase the perceived value of our Virtual Prototyping offer. The
continuing very high rate of repeat Licensing business and the
solid increase in New Business reflect the strength of this
progression. Moreover, Services business returned to growth thanks
to an acceleration in high value-added Engineering studies,
establishing a strong catalyst for the industry’s universal
transition towards the digital factory. Going beyond the
traditional PLM1 offers based on product design and development,
ESI's Virtual Prototyping solutions now enable our customers to
seek total control of their products' entire lifecycle, i.e. to
further anticipate their overall performance from launch to
phase-out (PPL2).
These good first-quarter figures support our short- and
medium-term growth and profitability prospects ".
________________
1 PLM: Product Lifecycle Management, which is concerned with the
effectiveness of product development until commercial launch.2 PPL:
Product Performance Lifecycle, which focuses on optimising the
product's whole "post-development" lifecycle, i.e. the way it is
integrated into and performs within its operational environment,
including operational maintenance, until the end of its useful
life.
Change in sales in the 1st quarter of 2016Financial year
ending January 31 (unaudited figures)First quarter ending April
30
In € millions Q1
2016
Q1
2015
% chg.
% chg.
(cer1)
Licenses
19.5 17.1
+14.3% +14.3%
Services
7.9 7.0
+12.3% +12.4%
Total
27.4 24.1
+13.7% +13.8%
1 cer: at constant exchange ratesAcquisition during the period:
Mineset, integrated from February 5, 2016.
Further strong growth
Sales for the first quarter of the 2016 financial year totalled
€27.4 million, up 13.7% on the year-earlier period, including
organic growth of 7.2%.
Sales from acquisitions totalled €1.6 million, a contribution of
6.6% on the total growth, mainly from the Licenses business of ESI
ITI GmbH, acquired in January 2016.
Exchange-rate movements had a neutral effect during the period,
with the rise in the Japanese yen offset by the fall in the US
dollar and the South Korean won against the euro.
The product mix remained stable, with 71.3% of sales coming from
Licenses as opposed to 70.9% in the first quarter of 2015.
Licenses: dynamism of the New Business activity
Licenses revenue amounted to €19.5 million, up 14.3%
year-on-year, including organic growth of 8%. That growth reflects
the upturn in New Business, which continued the trend seen in the
third and fourth quarters of 2015 and grew 43% (27% in organic
terms). New Business accounted for 18% of total Licenses sales,
against 14% in Q1-15. In particular, there were new international
contract wins in the electronics, marine and heavy industry
sectors. The installed base grew 8.7% (3.5% in organic terms) even
after the 35% surge seen in Q1-15, and the repeat business rate was
very high at 93.2%.
Services: double-digit growth in engineering studies
Services revenue totalled €7.9 million, up 12.3% or 5.1% in
organic terms. After jumping 18% in Q1-15, growth in Q1-16 was
driven by the new acquisitions (+7.4% impact) and the ongoing
strong momentum in engineering studies, one of ESI Group's core
businesses.
Geographical mix: strong growth in Asia
In Q1-16, Asia accounted for 47% of total sales versus 41% in
Q1-15, Europe 37% versus 39%, and the Americas 16% versus 20%. The
geographical breakdown of sales reflects strong cyclical growth in
Licensing in Asia, supported by innovative projects in the
automotive, aerospace and energy sectors, particularly in
Japan.
The BRIC countries accounted for 10.4% of total sales during the
period.
You can find all of our press releases at:
www.esi-group.com/presse
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About ESI Group
ESI Group is a leading innovator in Virtual Prototyping software
and services. Specialist in material physics, ESI has developed a
unique proficiency in helping industrial manufacturers replace
physical prototypes by virtually replicating the fabrication,
assembly and testing of products in different environments. Today,
coupled with Virtual Reality, animated by systems models, and
benefiting from data analytics, Virtual Prototyping becomes
immersive and interactive: ESI’s clients can bring their products
to life, ensuring reliable performance, serviceability and
maintainability. Benefiting world-leading OEM’s and innovative
companies alike, ESI empowers engineers and decision-makers with
the guarantee that their products will pass certification tests,
before any physical prototype is built, and that they will deliver
competitive products to their markets. ESI’s Virtual Prototyping
solutions address the emerging need for products to be smart and
autonomous and support industrial manufacturers in their digital
transformation.
Today, ESI’s customer base spans nearly every industry sector.
The company employs about 1100 high-level specialists worldwide to
address the needs of customers in more than 40 countries. For more
information, please visit www.esi-group.com/
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version on businesswire.com: http://www.businesswire.com/news/home/20160526006163/en/
Investor RelationsESI Group –
Europe/AsiaCorentine Lemarchand, +33 1 53 65 14
51orESI Group – AmericaCorinne
Romefort-Régnier, + 1 415 994
3570orNewCapEmmanuel HuynhLouis-Victor
Delouvrier+33 1 44 71 98 53
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