ESI reports license revenue up 13%

ESI Group today reported results for the first half of 2010 – and they were pretty good, reflecting the general improvement in the end-markets ESI serves. CEO Alain de Rouvray said in a press release, “The first half of the year witnessed a more robust growth, based on a solid performance from the Licences business and a gradual recovery in the Services business. The Licences business delivered a particularly strong performance in the second quarter, with high recurring sales from our installed base and an increased growth in New Business. These trends bring confidence in a positive evolution of our performance for the current year both in sales and results.” The details: • Q2 revenue was €17.4 million, up nearly 18% compared to a year ago — and up  nearly 9% excluding currency. • License revenue was up a strong 23% as reported or 13% in constant currencies, to €12 million. • The services picture is mixed.  Revenue was up in Q2 to €5.5 million but down slightly for the first half of 2010. • Sales in Asia continued to be strong, with revenue in Q2 up 25% to €7.8 million.  On a sequential basis, sales in Asia were up 14%.  Sales in the Americas were up 12% over a year ago to €3.8 million and,in Europe, sales were €5.8 million, up 12% from a year ago but flat with respect to Q1. ESI didn’t provide much detail on how or why revenue grew, but we can surmise that some of the growth in Asia is due to ESI’s success in selling to Tata Motors — Tata recently decided to standardize on PAM-STAMP, ESI`s sheet metal forming simulation solution, to reduce noise created by some components in its new vehicle platforms. PAM-STAMP is helping Tata investigate something it is calling “Silent Steel”, a “sandwich” material in which two sheets of steel are held together by a layer of polymer.  This new material is apparently much quieter in some applications, but its use also meant completely redesigning the part.  The story is very interesting — read it here — and highlights the need to accurately model something as-designed and as-fabricated. The company will provide more information in the full half-year report due out September 29, 2010.