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2006/07 annual sales: €66m - Q4 2006 licence sales: +11.7%

Paris, 13 th March 2007 : ESI Group (ISIN FR0004110310), a pioneer and world leading solution provider in virtual prototyping and manufacturing processes, today announced its consolidated sales for its fourth quarter and full year to 31 st January 2007.

Consolidated data

Details of Q4 quarterly sales

(€m)

2006/07

2005/06

% change

(real)

% change

(volume)

Licence sales

23.1

20.7

+11.7%

+13.9%

Services and other revenue

3.9

4.1

-4.2%

-2.2%

Total Q4 sales

27.00

24.7

+9.1%


+11.2%

Quarter to 31 st January

Sales recorded over the fourth quarter represented 41% of the Group's annual consolidated sales, reflecting the traditional major seasonal effect of our activity.

Sales break down in Q4 as follows:

  • buoyant activity for licences, whose sales were up +13.9% on a constant exchange rate basis and +11.7% in real terms,

  • a slip of -2.2% for the services activity on a constant exchange rate basis and -4.2% in real terms, a trend that incorporates a significant upturn in this activity in Q4 compared to Q3.

Details of annual sales

(€m)

2006/07

2005/06

% change

(real)

% change

(volume)

Licence sales

53.2

48.6

+9.5%

+11.2%

Services and other revenue

12.9

13.6

-5.6%

-4.9%

Total annual sales

66.0

62.2

+6.2%

+7.6%

FY to 31 st January

2006/07 annual sales totalled 66.0 million euros, yielding a growth of +6.2% compared to the previous financial year, and +7.6% on a constant exchange rate basis. This growth in activity integrates no changes in perimeter and breaks down as follows:

  • a significant acceleration in the growth of licence sales (81% of total sales), which grew by +11.2% in volume terms over the 2006/07 financial year, versus +7.0% the previous year. This good performance illustrates the efficiency of the growth relays contributed by our emerging and innovative products. Licence sales recurrence remains high at 85%;

  • a slip in services activity of -5.6% over the financial year, although stable over the first half of the year and in strong recovery in the fourth quarter following previous quarters impacted by unfavourable conjunctural factors.

Note that the services booking taken from our top twenty clients rose by +14%, illustrating the substantial complementarity of services and licences activities for large OEMs.

The geographical split of global activity (America: 17%; Asia: 36%; Europe: 47%) confirms the remarkable surge of Asia, and validates ESI Group's positioning-strengthening strategy in this geographical zone where international OEMs are increasingly present. Indeed, licence sales recorded in Asia were up +20.6% (+24.5% at constant exchange rates ), essentially due to China, Korea and India, despite a slowdown in Japan which was further affected by the weakening Yen.

Alain de ROUVRAY, ESI Group's Chairman and CEO, comments: “ We are pleased with the growth in our licences activity. In particular, growth was buoyant in Asia, where emerging areas with substantial development potential also contributed to the sectorial diversification of our sales, in particular in the aeronautical sector. Although our services activity was significantly impacted by conjunctural events over the last year, its upturn towards the end of the year resulted from a substantial improvement in the economic climate and the development of certain new sectors such as electronuclear. Services should be further consolidated by the commercialisation of a restructured offer and the launch of promising cofinanced and innovative projects .”

About ESI Group

A virtual test software package publisher, ESI Group is the world-leading supplier, and a pioneer of digital simulation software for prototyping and manufacturing processes that take into account the physics of materials. ESI Group has developed an extensive suite of coherent, industry oriented applications to realistically simulate a product's behaviour during testing, to fine-tune manufacturing processes in accordance with desired product performance, and evaluate the environment's impact on product performance. ESI Group's products, which have a proven track record in manufacturing and have been combined in multi-trade value chains, represent a unique collaborative and open virtual engineering solution known as the Virtual Try-Out Space (VTOS), enabling virtual prototypes to be improved in a continuous and collaborative manner. This integrated communication protocol will enable all the company's solutions to work with each other and with applications developed by independent software vendors. By significantly reducing costs and development lead times and enabling product/process synergies, VTOS solutions offer major competitive advantage by progressively eliminating the need for physical prototypes during product development. The company generated sales of €66m in 2006, employs over 600 high-level specialists worldwide covering more than 30 countries. ESI Group is listed in Eurolist compartment C of Euronext Paris. For further information, visit www.esi-group.com .

ESI GROUP has been qualified as “an innovative company” since January 20 2000 by the ANVAR and is eligible for inclusion in “FCPI” (venture capital trusts dedicated to innovation).

Listed in Eurolist compartment C of Euronext Paris

ISIN FR 0004110310 - FTSE 977- Bloomberg ESI FP - Reuters ESIG.LN

Euronext logo

FY 2006 annual results will be published on 24 th May 2007

(after market)

Virtual Try-Out Space® and VTOS® are registered trademarks of ESI Group. All other products, names or companies are the brands or registered trademarks of their respective owners .

ESI Group
Corinne Romefort-Régnier
Shareholder relations
Tel.: +33 (0)1 53 65 14 14
investors@esi-group.com
NewCap
Emmanuel Huynh / Axelle Vuillermet
Tel.: +33 (0)1 44 71 94 94
infos@newcap.fr

 
 
Video interview of ESI Group Chairman & CEO Alain de Rouvray
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