Delcam reports nice surprise

In case you missed it, Delcam also gave a trading update last week. The UK-based maker of CAM solutions said that it saw a “strong finish” to 2011 with “profit before tax to be ahead of current market forecasts of £3.2m (stated before share option charges of £0.1m). Full year revenues are expected to be approximately £41m, with revenues for the second half setting a new record for a half year period”. Those results are a bit ahead of earlier predictions. First-half revenues reached a record high of £20.1 million, leading the company to cautious optimism about the second half. Business “began well and the fourth quarter to [November 14 was] good”. The company said on November 14 that sales for the full year were expected to be about £40 million, as “all major trading regions have contributed to the strong performance to date, with the Company’s performance in Germany being especially pleasing”. Coming in with a £1 million upside six weeks after the November announcement isn’t an earthshaking development, but is worth exploring how this came about. Was this a reseller aggressively targeting a new market? A strong new product taking on the competition? A single large deal or many small ones? We’ll know more when Delcam announces results at the end of March.