Switching gears from the day’s activities here in Amsterdam but still staying with the infrastructure/AEC theme, here is a quick update on AVEVA’s solid results for the first half of fiscal 2013, with broad-based growth reported in many regions, end-markets and geographies.
Remember that AVEVA’s new Everything 3D product won’t ship until December, so is not included in these numbers. It will likely have a small impact in H2 2013 and a more significant one in fiscal 2014.
The main points:
- Total revenue was £98 million, up 15% from a year ago six months ended September 30
- Revenue was up 21% from Asia Pacific, up 13% from EMEA and up 6% from the Americas
- Revenue growth was balanced across the different license models, with rental license revenue up 17% and the more traditional initial license fee component revenue up 18, reflecting what AVEVA characterizes as a continued shift in customers’ buying preferences, particularly in Europe.
- Revenue from the design tools business was up 14% while revenue from the enterprise solutions business was up 16% in the first half of fiscal 2013. The company says this is a result of its strategy of “targeting Owner Operators to mandate the use of AVEVA NET for data handover to the engineering contractors”.
- AVEVA does say it sees longer sales cycle for ts enterprise solutions.
- By vertical, the Oil & Gas sector continues to boom, as owners and operators continue to make capital investments in their assets and explore deeper water oil field extraction. This carries over into the Marine sector, as those shipyards doing offshore projects continue to find work, while the commercial shipbuilding market remains “depressed”, according to the company. In Power, AVEVA sees potential demand in China and India for nuclear projects and sees continued spending on conventional power plants.
AVEVA doesn’t give conventional outlook, but CEO Richard Longdon said that AVEVA is “well positioned to continue to exploit growth opportunities globally, despite the uncertain economic backdrop and the continued weakness in the Marine industry… As we enter the second half of the year, the Group is well positioned to deliver … expectations for the full year.” Analysts have revenue at between £212 million and £240 million, or up 8% (which seem awfully low to me) to 22%. AVEVA’s revenue is usually skewed to the second half, so somewhere between 15% and 20% feels about right.