Continued solid growth momentum
- Strong growth in Licensing
business
- Sustained high rate of repeat
business
- Robust business in Asian
markets
Regulatory News:
Alain de Rouvray, ESI Group’s (Paris:ESI) Chairman and CEO,
comments: "The third quarter continues the trend established during
the first half of the year, with the increasingly wide adoption of
Virtual Prototyping solutions. The Licensing business remained
robust with a continued high rate of repeat business in all
geographical regions and an improvement in New Business, especially
linked to strong performance in China. Still impacted by cyclical
effects, Services nevertheless reflected the success of engineering
studies, the core of the Group's development strategy. Confident in
its development plan and its position at the cutting edge of
innovation, ESI Group intends to further develop its technological
differentiation strategy through its external growth policy backed
by a recent increase in funding in the form of a syndicated loan of
€49 million."
Change in sales in the 3rd quarter and
cumulatively
FY to January 31 (unaudited) The 3rd quarter ends on October
31.
In €
millions
Q3
2015
Q3 2014 % chg.
% chg. (cer*)
Sales9 months
2015
Sales 9 months
2014
% chg.
% chg. (cer*)
Licenses
14.9 12.8
+16.2% +12.3% 49.6
42.5
+16.8% +9.9%
Services
6.4 6.5
-1.3% -4.4% 20.1
19.5
+3.3% -1.8%
Total
21.4 19.4 +10.3% +6.7%
69.8 62.0 +12.5% +6.2%
* cer: at constant exchange rates
Acquisitions during the period: CIVITEC's activities entered the
scope of consolidation as of March 27, 2015 and the assets of
Ciespace were consolidated as of April 10, 2015. The assets of
PicViz were consolidated as of March 30, 2015, and PRESTO software
entered the scope of consolidation as of May 6, 2015.
Breakdown of quarterly sales
In € millions Q3
2015 Q2 2015 Q1 2015 Q3 2014
Q2 2014 Q1 2014
Licenses
14.9 17.6 17.1 12.8 15.5 14.2
Services
6.4 6.7 7.0 6.5 7.0 5.9
Total 21.4 24.3
24.1 19.4 22.5 20.1
Reminder: the seasonal nature of the ESI Group’s Licenses
business results in the recognition of the largest share of annual
revenue in the fourth quarter of the year.
Sales for the 3rd quarter
Sales for the period amounts to €21.4 million, representing
sustained growth of 10.3% compared to the 3rd quarter of 2014.
There was a positive currency effect of €0.7 million. Licenses
sales stood at €14.9 million, an impressive 16.2% increase at
current rates of exchange (+12.3% at constant rates), driven by
strong performance in Asia-Pacific area, as well as dynamic Repeat
Business (+21.8% at current exchange rates; +18.5% at constant
rates). New Business grew 9.0% at actual rates (+4.4% at constant
exchange rates).
With regard to Services, sales fell marginally to €6.4 million:
recording -1.3% at actual rates of exchange (-4.4% at constant
rates).
Nine-month sales
Nine-month sales totaled €69.8 million, an increase of 12.5% at
current exchange rates compared with the same period last year. The
currency impact for the period was a positive €3.9 million and
stemmed primarily from favorable movements in the US dollar and, to
a lesser extent, the Japanese Yen and South Korean Won. At constant
exchange rates, sales were up 6.2%, reflecting the dynamism of the
business since the beginning of the year.
The product mix is changing in favor of the Licensing business,
which accounted for 71.1% of total sales, compared with 68.6% in
the same period last year.
Strong growth in the Licensing business
Sales generated by the Licensing business increased to €49.6
million, representing a significant growth of 16.8% at actual
exchange rates (+9.9% at constant rates) against the previous year.
Similarly to the 1st half-year, this buoyancy reflects the
successful levels of repeat business on the installed base, which
grew at 25.5% (+17.5% at constant exchange rates). The repeat
business rate remained very high at 92.6% at current exchange rates
(86.7% at constant rates compared with 74.5% for the first 9 months
of 2014). New Business totaled €9.5 million at current exchange
rates benefiting the growth of the 3rd quarter but showing a
decline of 3.0% in actual terms (-7.7% at constant rates). This
activity was affected by the persistently difficult climate in
Russia which overshadowed remarkable performances in Asia and, more
specifically, in China.
Services: continued double-digit growth for engineering
studies
The Services business reported sales of €20.1 million in real
terms, representing growth of +3.3%
(-1.8% at constant exchange rates). This was driven by the
significant progress of engineering studies, ESI Group's core
business, where 13.4% (+7.3% at constant exchange rates) growth was
achieved.
Geographic mix: strong business in Asia
Over the 9 first months, the geographic breakdown of sales
reflected significant growth in Asia and the Americas; driven by
the Licensing business. These regions, at current exchange rates,
respectively represented 41.4% and 20.0% of total sales, compared
with 39.1% and 18.0% for the same period in the previous year;
trends that contrasted with the proportion in the European region,
which accounted for 38.6% compared with 42.9% last year. The
increases reflect the solid performance of the Licensing business
in Asia, where China recorded an outstanding growth of 81.8%, and
in the Americas where growth was 36.3%.
Business in the BRIC countries represented 13.5% of total sales
for the period, against 12.1% the previous year. The highlight was
the marked buoyancy of the Licensing business in China that was
driven predominantly by the success of the immersive virtual
reality solution among strategic partners.
For more ESI news, visit: www.esi-group.com/company/press
Next event:
2015 annual sales
March 14, 2016
About ESI
ESI is a world-leading provider of Virtual Prototyping software
and services with a strong foundation in the physics of materials
and Virtual Manufacturing.
Founded over 40 years ago, 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. Virtual Prototyping
enables ESI’s clients to evaluate the performance of their product
and the consequences of its manufacturing history, under normal or
accidental conditions. By benefiting from this information early in
the process, enterprises know whether a product can be built, and
whether it will meet its performance and certification objectives,
before any physical prototype is built. To enable customer
innovation, ESI’s solutions integrate the latest technologies in
high performance computing and immersive Virtual Reality, allowing
companies to bring products to life before they even exist.
Today, ESI’s customer base spans nearly every industry sector.
The company employs more than 1,000 high-level specialists
worldwide to address the needs of customers in more than 40
countries.
ESI is listed in compartment C of NYSE Euronext Paris and is
granted “Entreprise Innovante” (Innovative Company) certification
since 2000 by Bpifrance. ESI is eligible for inclusion in FCPI
(venture capital trusts dedicated to innovation) and PEA PME.
For further information, go to www.esi-group.com.
Connect with ESI on:
LinkedIn
Facebook
Twitter
YouTube
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151126005470/en/
Investor RelationsESI Group – Europe &
AsiaCorentine Lemarchand, +33 1 53 65 14 14orESI Group -
AmericasCorinne Romefort-Régnier, +1
415-994-3570orNewCapEmmanuel
HuynhLouis-Victor Delouvrier+33 1 44 71 98
53
ITT Educational Services (CE) (USOTC:ESINQ)
Historical Stock Chart
From Mar 2024 to Apr 2024
ITT Educational Services (CE) (USOTC:ESINQ)
Historical Stock Chart
From Apr 2023 to Apr 2024