AVEVA released an interim statement today, in which it briefly goes over business trends seen in the June quarter (AVEVA reports in more detail twice a year). The statement used words such as “further growth”, “strengthening” and “steady progress” — so while no numbers were offered, we can infer that fiscal 2012 is shaping up to plan.
AVEVA said that it continues to see strong demand from the oil and gas sector, power “continues to make steady progress” and marine “remains robust”. Interestingly enough, I had a conversation just yesterday with CEO Richard Longdon, who told me that the lines between marine and oil and gas are blurring, as more and offshore oil rig work is undertaken by traditional shipyards — in fact, he said, some shipyards in Asia are reporting that as many as 50% of their projects are not traditional ships but rather floating production storage and offloading (FPSO) vessels.
The company restructured its operations into Design & Creation (PDMS, etc.) and Enterprise Solutions (AVEVA Net, etc.) earlier this year and reports that the buildout of its Enterprise Solutions business development team has led to “revenue significantly ahead of the same period last year”. It expects this momentum to continue to build through the rest of the year.
On a regional basis, AVEVA sees “good progress” in Brazil and Russia, has created a wholly-owned subsidiary in China, reports “strong performance” in South Korea and some of the South East Asian countries while conditions in North America “remains tough”. Performance in Europe is mixed, the company says, as Eastern and Central Europe were “satisfactory” while Southern Europe “remained challenging”.
This type of interim release doesn’t include any financial facts, but analysts in London expect AVEVA to report revenue of £195 million, which would be an increase of about 12%.