Alain de Rouvray, ESI Group's (Paris:ESI) Chairman and CEO, comments:
"Over our third quarter, the Group reaffirmed its ability to deliver
substantial revenue momentum across its entire scope, which bears
witness to the growing success of our virtual prototyping solutions and
the relevance of the strategic choices made in regard to our
acquisitions. This performance was achieved in a balanced manner between
the various sectors and geographical zones, with a high rate of Repeat
Business. The buoyant revenues growth over the first three quarters of
our financial year affirms our conviction that we will be in line with
our multi-year development plan."
3rd quarter and 9-month revenues
The Group's FY ends on January 31st
* Sales exclude purchase/resale operations of €0.7 million. 2012/13
revenues include activity recorded by IC.IDO, consolidated from August
24, 2011, and Efield, consolidated from December 9, 2011.
** cer: constant exchange rate
Breakdown of quarterly revenues
Reminder: the seasonal nature of ESI Group's License revenues usually
has the consequence that a larger proportion of full-year revenues is
recorded over the fourth quarter of the year.
* The 3rd quarter of 2012/13 now
incorporates the consolidation of IC.IDO's activity within the Group's
organic scope. The scope associated with external growth incorporates
the OpenCFD and Efield activities.
3rd quarter sales
Revenues for the 3rd quarter of 2012/13 totaled 21.9 million
euros; in actual terms up +24.5% on the 3rd quarter of last
year. This quarter includes 0.4 million euros in revenues resulting from
the consolidation of the Efield and OpenCFD activities, as these two
acquisitions were announced on December 13, 2011 and September 12, 2012
respectively. The impact of these acquisitions being limited, the
buoyant growth recorded by the Group was therefore mainly organic. At
constant scope (excluding the acquisitions), revenues totaled 21.5
million euros over the 3rd quarter of 2012/13; an increase of
+22.4% (+17.7% at constant exchange rates).
The product mix was stable relative to the same quarter of the previous
year. Licenses revenues, which totaled 14.2 million euros and increased
+23.4% in actual terms; represented 64.7% of total revenues, versus
65.3% for the same quarter last year.
All of the Group's key indicators were positive. Repeat Business
remained high at 82.9%, yielding substantial growth of +18.2% in actual
terms. New Business represented 29.4% of Licenses revenues, recording a
growth of +15.2%. This dynamism, inherent to the activity generated by
new products and/or new accounts, bears witness to the sales synergies
derived from the recent acquisitions.
Regarding Services activity, revenues were up +26.9% in actual terms and
totaled 7.7 million euros, reflecting industry's need for support within
the framework of deployment of innovative, high value added projects
that require the implementation of virtual prototyping solutions. At
constant scope, revenue growth was +20.6% (+16.2% at constant exchange
The evolution in the geographical split in revenues never-the-less
reflects balanced growth across all of the Group's geographical zones.
Europe, Asia and the Americas accounted for 38.4%, 41.0% and 20.6% of
sales respectively, compared with 40.0%, 39.3% and 20.7% over the 3rd
quarter of last year. A fine performance recorded in Licenses activity
in Asia should be noted, with this segment achieving organic growth of
+25.6% at constant exchange rates thanks to the signing of important
contracts in Japan and China in the Automotive sector.
Over the first 9 months of 2012/13, the Group recorded revenues of 66.7
million euros, up +23.0% in actual terms, +18.1% in organic terms, and
+12.7% at constant exchange rates.
Licenses activity grew by +21.7% in actual terms (+17.2% in organic
terms) to 44.3 million euros and accounted for 66.5% of total Group
revenues over the first 9 months of 2012/13.
The Installed Base recorded buoyant growth of +21.1% in actual terms,
totaling 30.3 million euros. The rate of Repeat Business remained very
high at 89%. New Business recorded solid growth of +12.6% at 10.1
million euros, and thus accounted for 25.1% of total Licenses revenues.
Services activity also recorded buoyant growth, increasing by +25.6% in
actual terms (+19.9% in organic terms) to 22.3 million euros.
In terms of the geographical split, activity recorded significant growth
in Europe (+23.1%), especially License sales. The development of ESI
Group's activity in Asia also continued at a buoyant rate (+21.9% in
actual terms), with a substantial acceleration in the organic growth of
the Services segment (+40.1%). Strong and balanced growth (+25.1% in
actual terms) was also recorded in the Americas.
By sector, the first 9 months of the year saw an improvement in orders
booked from sectors facing substantial competitive pressure and
increasingly stringent regulations: Transportation (including
Automotive) recorded an increase of +15% (accounting for 51% of
booking), Aeronautical and Space +35% (13% of booking) and Heavy
Industry +10% (16% of booking).
is a pioneer and world-leading player in virtual prototyping that take
into account the physics of materials. ESI
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 to evaluate the environment's impact on product
performance. This offer represents a unique collaborative and open
environment for Simulation-Based Design, enabling virtual prototypes to
be improved in a continuous and collaborative manner while eliminating
the need for physical prototypes during product development. Present in
over 30 countries, ESI
employs some 900 high-level specialists throughout its worldwide
network. ESI Group is listed on compartment C of NYSE Euronext Paris.
For further information, go to www.esi-group.com.
ESI is on Twitter,
is the leader and a pioneer in virtual prototyping solutions.
Stock market informationListed on compartment C of the
NYSE Euronext ParisISIN
FR 0004110310FTSE 977Bloomberg ESI FPReuters
Granted "entreprise innovante" (innovative company)
certification on January 20, 2000 by OSEO, ESI
Group is eligible for inclusion in FCPI (venture capital
trusts dedicated to innovation
Financial schedulePress release2012/13 annual
salesMarch 14, 2013(after market)
Our Press Section can be found at www.esi-group.com
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