While some of us are on a beach, sipping drinks with little umbrellas, others are busily telling Wall Street (or London City) what’s going on in their businesses. Today, we’ll take a quick look at recent earnings from CAM vendors Cimatron and Delcam.
Cimatron earlier this week announced record results for the second quarter of 2013, with revenue up 4% to $11 million. License revenue was just under $5 million, up 5%; maintenance revenue was $5.3 million, up 4%, while professional services revenue was just under $1 million versus $750,000 a year ago.
By geography, revenue from Europe was $5.2 million, up 8%; from North America, up 3% to $3.5 million; from Asia Pacific $1.8 million, up 6% and, from the rest of the world $550,000. [Cimatron offers revenue source and geo breakdowns as percentages of total revenue. As a result, growth estimates are really rough ranges. — Ed.]
For the first six months of 2013, revenues were up 3% to $21.2 million.
CEO Danny Haran told investors that “We are working to boost our revenues both in terms of sales effort and product offerings. In start of these efforts, we recently announced a new product operation contract with Moldex3D to offer new capabilities for cooling system stimulation. This cooperation serves two purposes. While it will become part of our new offering for 3D-printed conformal cooling, it can also be sold to users of traditional cooling systems thus generating addition revenues. At the same time, we continue to explore M&A opportunities of any kind that will make sense in terms of price and synergies.”
Mr. Haran also spoke again about Cimatron’s plans regarding 3D printing. He told investors that “we are exploring this — software for 3D printing is an industry in its infancy. The agreement [just announced] with Moldex3D is actually a good example for the kind of cooperation we’re looking to, to get some technology to get us moving faster because and I think I said this also before, we are not going to develop everything. We can license technology, we can buy technology.”
Cimatron doesn’t offer specific guidance, by CFO Ilan Erez did say that “Q3 [revenue] is usually somewhat below Q1. We have no reason to believe that this year it would be different, [so] expect the typical seasonality to be maintained this year as well … Generally speaking the growth that we’re showing in the first half of this year seems to be the growth that we see [for the] year.”
Mr. Haran added that “we did see some slowdown or slower growth in the U.S. Other than that, actually the automotive industry in the U.S. was doing quite well.” Wall Street is currently modeling total revenue for the year of $43.5 million, which would be an increase of about 6%.
Delcam also reported record sales for the first half of 2013, propelled by 18% growth in maintenance revenue to £8.1 million and a 10% increase in software license revenue to £12.7 million. Services revenue was up 9% to £3.1 million. In total, revenue was up 9% £25 million, marking the seventh consecutive six-month period of record revenue.
The company said it saw “improved performance” in most territories, especially in the USA, UK, Germany, Italy, and China, with “good growth” in France, Canada, India, Korea and Thailand. Software revenue broke out as follows in H1 2013 (all of 2012): 41% (38%) from the Far East, 38% (39%) from Europe, and 21% (23%) from the Americas. The variations with last year are small and were likely influenced by the rollout of 15 new versions of products released so far this year.
In June, Delcam continued its string of reseller acquisitions, building out its direct representation in the US buy acquiring Illinois reseller, CAD CAM Systems. CAD CAM Systems has been a Delcam partner since 1994 and a contract CNC machining shop since 1996; the machining division will be spun out into a standalone company while everyone from the software part of the business became employees of Delcam North America.
Chairman Peter Miles said in a prepared statement that he is “optimistic that our strong trading will continue in the second half. As in previous years, the final quarter of the year will be our most important trading period and so will influence the outcome for the year as a whole.” Delcam doesn’t offer specific guidance, but London City analysts have total revenue of £52 million for 2013, which would be an increase of around 11%.
And, before we forget: There’s CAM news from Autodesk, too. Autodesk acquired HSMWorks last October (amid much kerfuffle) and in July announced the public beta of Autodesk Inventor HSM Express, a free CAM solution for Autodesk Inventor. According to the company, Inventor HSM Express “has all the capabilities of HSMXpress – the free CAM Solution for SolidWorks – and is seamlessly integrated inside the design environment of Autodesk Inventor”. To sign-up for the beta, and to check out what else Autodesk is thinking about, CAMwise, go to http://cam.autodesk.com.
As in much of STEM, there’s a real problem attracting young people into careers in the machining trades. I was really impressed by WorldSkills International, a competition those of us who pay attention to things like FIRST should also follow. WorldSkills is a non-profit that promotes vocational education and training — and one key component of their mission is a bi-annual skills competition. It’s been going on for 50 years, and draws young people from around nearly 70 countries/regions to Leipzig, Germany (2103), São Paulo, Brazil (2015) and Abu Dhabi (2017) where they compete in CAD, milling, turning, sheet metal, electronics, jewelry design and 45 other categories. One CAM vendor I spoke with, based in Brazil, told me that he’s working with state governments to ensure that their students are adequately prepared for careers in high-tech manufacturing and that participation in Skills events is a key part of that mission. What a great idea — and a way to benchmark vocational education’s results. Find out more at http://www.worldskills.org.
Image credit: Flickr user mac_ivan, who’s got some really cool architectural images, too.