Schnitger Corporation

Nemetschek’s Q1 on target

Nemetschek AG reported today that revenue grew 10% in the March quarter to €39 million, aided by a 15% increase in maintenance revenue (to €18 million). License revenue grew 7% to €19 million. Said CEO Ernst Homolka, “The new fiscal year has started well. The Nemetschek Group grew by 10 percent in the first quarter and proved highly profitable once again. This growth was driven by Western Europe, but also by the USA and the Asia-Pacific region. We also won some interesting contracts in Mexico and Brazil. So far, our overall progress confirms our expectations for the 2011 fiscal year.”

The company is seeing shifts in its business model: Maintenance made up 46% percent of total revenue, up from 44% a year ago. International revenue is also picking up steam — revenue from outside Germany grew 15% to €24 million, while revenue from Germany was essentially flat at just under €15 million. Revenue from outside Germany now accounts for 63% of total, up from 59% a year ago.

The company’s Design segment saw revenue increase 8% to €31 million; in the Multimedia segment, revenue increased almost 50% to €3.4 million, due to revenue from maintenance contracts introduced last year. Revenue from the Build segment grew by 8% to €3.5 million. Finally, the Manage unit still reports revenue under €1 million, flat with last year.

The company last year began investing in Web-based technologies and at the end of Q1 began the pilot of the online version of Allplan, the company’s BIM solution for architects and engineers.

Nemetschek believes the results for Q1 confirm its 2011 target of 10% growth, which would bring it to revenue of roughly €165 million. Much of this growth is expected to come from outside Western Europe as the construction sector output is expected to grow most strongly in South America, Asia, the Middle East and Eastern Europe.

Also an important goal for 2011: coming close to repaying the loan taken out to finance the acquisition of Graphisoft. The combination of profitable growth and decreasing interest charges will cause an increase in net income, according to the company, to over €20 million euros.

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