Delcam revenue up 12% so far in 2010

Delcam plc, the UK-based CAM supplier, reported results today that indicate that it saw a strong recovery in demand for its products during the first half of 2010. Total revenue was up 12% to £18.1 million — a new high in 6-month revenue for Delcam. According to a statement by Chairman Peter Miles, “[t]hese encouraging results reflect recovery across all our major territories globally and were supported by our decision to maintain investment in product development and marketing during the downturn in order to gain commercial advantage.”

The revenue increase was primarily due to growth in software license sales, which were up 30% for the period to £9 million. Maintenance revenue was £6.3 million, up 9% from the first half of last year. Services revenue declined 16% to £2 million.

The company reports that license revenue was up in all of its major markets, with the most significant increases in Asia and South America, where license revenue rose by 48% and 50% respectively. Total revenue in Europe was up 4% to £10 million, in 16% in the Americas to £4.3 million and up 27% in Asia to £3.9 million.

Delcam also said that adoption of its products by the healthcare market, a newer market for the company, were encouraging. In the only other bit of verticals news, Delcam reported that its Tooling Services Division, which mainly does projects for the aerospace industry, saw “reduced demand for its services”.

The company offered cautious guidance for the rest of 2010, citing ongoing uncertainty about the “strength and durability of the recovery, and over the potential impact of reduced government spending in some countries. Reflecting this uncertainty, many companies are continuing to postpone their investments in capital equipment and the associated software purchases.” Even so, the company “remain[s] optimistic that the improving trend will continue and if this remains the case, we would expect trading results for the year to 31 December 2010 to show a significant improvement on results for 2009.” London City analysts expect total revenue for 2010 to be around £35.55 million pounds, up slightly from after Delcam’s March announcement, an increase of about 11%. Shareholders are happy at today’s news, sending the stock up 2% to a 52-week high.