Delcam plc announced back in early January that its fourth quarter was a “buoyant” end to a good year — yesterday, we found out just how good: For the year ended December 31, 2010 Delcam achieved record sales (£36.6 million, or about $59 million, up 17% over 2009) while pre-tax profit nearly quadrupled to £2.26 million. These results neatly reverse the 4% decline in revenue Delcam had seen in 2009 due to spending cutbacks among its customers.

Delcam Chairman, Peter Miles, said, “Our results were driven by improved sales across all of our key markets in Europe, North America and Asia, with the Group’s newer territories in Asia showing the largest increases. The marked upturn in sales benefited from our decision to maintain product development and marketing investment during the downturn of 2009.”

The details:
• Software revenue was nearly £19 million, up 24% from the restated 2009 total (see below); maintenance revenue was £11.6 million, up 13%, while services revenue was £4 million, down 17%.
• By geography, revenue from Europe was £19 million, an increase of 7% over 2009; revenue from the Americas was £9 million, up 21%, and revenue from Asia was nearly £9 million, up over 40%. In addition to improved sales across the company’s key markets in Europe, North America and Asia, Delcam noted that its “newer territories in China and India showing significant growth” and that it saw a “a good recovery” in Korea and Japan.
• Delcam also pointed out that its recurring revenue, aka maintenance, accounted for 32% of the total, an important indicator to investors of a predictable, profitable revenue stream.

Delcam didn’t disclose sales by product or brand, but did mention several stunning highlights for 2010: the company signed its 35,000th customer overall (Southern Spars in New Zealand), its 10,000th customer in the North America (Core 3D Centers) and its 1,500th customer in China (Zhejiang (Taizhou) Jianli Mould Co. Ltd). Clearly Delcam is a global company with a much wider reach than most people realize.

The company also announced a reorganization: As of January 1, 2011, it combined the Tooling Services Division, which “delivered a weaker performance in 2010 than in 2009 (following the completion of a major contract), with [the] Professional Services Group. We expect that this integration with our consultancy activities will support growth in the level of business for our process development and prototype manufacturing activities.”

Finally, one accounting change was noted: “The Group has changed its accounting policy regarding the reporting of maintenance revenues in order to recognise these revenues on a straight line basis. Accordingly, results for 2010 are stated on this basis and results for 2009 have been restated.” Delcam had recognized 30% of the revenue “up front” and spread only the remaining 70% over the rest of the contract period. If you’re keeping track, 2009 revenue as reported in early 2010 was £31.8 million, so the net effect of this change was a revenue decrease of £0.5 million in 2009, pushed into future years.

Mr. Miles also commented on the company’s outlook: “The current indications are that 2011 will see companies in most of our major territories increase their investments in capital equipment and the associated software and, against this backdrop, the business is well placed to benefit.   However this trend may be affected by recent events in Japan and in the Middle East.  At this early stage in 2011, the growth in our sales is continuing and, if this remains the case, we are optimistic that our trading results for the coming year will show further improvement over those for the last twelve months.”