Lectra:announces Q4, and FY2004 results
Lectra, a provider of software and hardware dedicated to industrial users of textiles, leather, and other soft materials. has announced that the company’s fourth-quarter and full year business activity was in line with expectations, in what it called ‘persistently tough economic and geopolitical conditions, affected by growing uncertainty inherent in the upcoming abolition of textile quotas by the WTO on January 1, 2005.’
Revenues were slightly above the middle of the range of estimates communicated by the company on October 29, and income from operations near the top end of the estimate.
Orders for software licenses and equipment increased by €14.4 million (+15%) compared with 2003 (+3% at constant exchange rates and scope of consolidation). For the second consecutive year, this growth was especially vigorous (+25% at constant exchange rates and scope of consolidation) in the transportation industry - in particular the automotive industry - and the industrial textiles sector. These account for 28% of aggregate orders for the year.
Orders in furniture & furnishings also rose appreciably (+19% at constant exchange rates and scope of consolidation). This market accounted for 11% of aggregate orders for the year, with strong contributions from the United States, Italy, Poland, and Germany. Apparel industry business activity, meanwhile, was disappointing overall: while orders rose 15% as a result of the acquisition of Investronica, they were down 7% at constant exchange rates and scope of consolidation.
Revenues for FY2004 (€208.5 million) grew by 13%, boosted chiefly by acquisitions. Revenues from new systems (€119.5 million) increased by 14% relative to FY2003 (+1% at constant exchange rates and scope of consolidation). Recurring revenues (€89 million) grew by 12% (+4% at constant exchange rates and scope of consolidation).
The company improved its margins overall, despite the dollar's 9% decline and tough competitive pressures. In addition, the company has taken measures to optimise all fixed overheads, achieving overall savings of around €6 million (-5% relative to 2003).
