Weak orders at Lectra
According to Lectra, business conditions were particularly weak during the first quarter, and many of its customers reported a further severe deterioration in their situations.
As a result, first-quarter orders for new software licenses and CAD/CAM equipment (EUR 10.4 million) were down 50% overall compared with the first quarter of 2008. The decline in orders gathered pace in 2008 with each succeeding quarter, culminating in a fall of 48% in the fourth quarter 2008. At the same time, orders for spare parts and consumables, which traditionally hold up well, have fallen sharply, something which happened for the first time in the fourth quarter of 2008, because of significantly lower production levels and plant closures.
First-quarter revenues (EUR 37.6 million) were down 30% compared with the first quarter of 2008. Revenues from new systems sales (EUR 13.9 million) were down 50% and recurring revenues (EUR 23.7 million) fell 9%. Revenues from spare parts and consumables fell 25%.
As the company had anticipated, income from operations was negative at -EUR 3.2 million. The company is likely to register a further loss on operations in the second quarter of 2009. However, income from operations should return to breakeven or be slightly positive in the second half.
Lectra provides software, CAD/CAM equipment and related services for large-scale users of leather, textiles and industrial fabrics. It addresses a broad array of major global markets including fashion (apparel, accessories and footwear), automotive (car seats, interiors and airbags) and furniture.
