AVEVA today offered a brief update on its performance for the first half of its fiscal year, from April 1 to September 30. There were no numbers or real details, but the company did say that its end-markets are still recovering from the global economic meltdown: the oil and gas market is “positive”, power remains stable and marine continues to be slow.
We’ll have to wait for the full report, but these nuggets suggest that revenue from Asia, heavily dependent on the marine market, will continue to struggle and may not have recovered to pre-downturn levels. Too, since AVEVA’s revenue has typically been split evenly between the power, marine and oil and gas verticals, this news would imply that total revenue is flat to perhaps slightly up from a year ago — but we’ll find out more on November 10, when the full results report comes out.
CEO Richard Longdon said, “Our strong base of recurring revenue, together with good growth in developing markets, continues to help mitigate the impact of economic uncertainty. Despite remaining a small proportion of group revenue, the AVEVA NET pipeline continues to build with growing customer acceptance of this technology solution. Ongoing careful investment in product and delivery capability across our portfolio remains a key focus as we reinforce the leadership position of our technologies and global sales infrastructure.”
Investors appear to find this news positive, since the share price in London is up about 1% in mid-day trading.