Momentum continues in ESI’s Q3 results

ESI Group today released results for its fiscal third quarter, ended October 31, 2010 — and they continue ESI’s upward trajectory. Total revenue for the third quarter of fiscal year was €16.0 million, up 16% from a year ago but down 6% sequentially, following the typical seasonal pattern for ESI.

License revenue was €10.6 million, up 23% over a year ago, as new license revenue jumped 59% to nearly €3 million.

For the year to date, total revenue is up 9% to €49 million, driven by licenses revenue growth of 14% to €33 million; services revenue was essentially flat when compared to last fiscal year. ESI did not provide a geographic split for Q3, but for the year so far, revenue from Asia accounted for 43.5% of of total revenue, or €21 million, up from around 33% for the entirety of the fiscal year ended January 2010.

Alain de Rouvray, ESI Chairman and CEO, said in the earnings press release that “the acceleration in new licenses sales shows the increasing appeal of our solutions, which are an essential factor for increasing the competitiveness of manufacturing industries. We are confident that our growth will continue throughout the fourth quarter, which remains our most important quarter due to the strong seasonality effect of our licensing revenues.” Indeed, nearly 50% of total revenue and over 40% of license revenue is typically recognized by ESI during its fourth fiscal quarter.