Quickie: AVEVA still feeling the slump in oil and gas
AVEVA just announced that, as expected, total revenue was up as reported but down in constant currencies, as the British Pound is weakened over Brexit uncertainties. In general, the results seem are due to slumping demand from companies that would normally use AVEVA’s PDMS, E3D, AVEVA Net and other products on oil and gas projects, many of which are on hold until that business improves. Some details:
- Total revenue for the year ended March 31 was £216 million, up 7% as reported and down 4% in constant currencies (cc)
- Recurring revenue holds steady at 77% of total revenues, but the mix shifted slightly, as rentals decreased 5% while maintenance was flat. The announcement said that rentals were down because of lower demand in Latin America (mostly Brazil) and lower activity in oil and gas. Initial license fees (new license) revenue was down 3% while training and services revenue was down 14%, reflecting lower activity
- By region, revenue from Asia was down 6% cc as Marine continues to struggle in South Korea and India; China and South East Asia were flat, performance in Japan was “strong”. Revenue from the Americas was up 4% cc, led by strong performance in North America, while Latin America continues to be weak. Revenue from EMEA were down 4% cc
Much more after the earnings call. Now, PTC Liveworx.