Yesterday was a really busy news day, what with earnings news from AVEVA, CENIT and Softech and the merger of Objet and Stratasys— not to mention trying to write future posts about COFES, Rulestream and CD-adapco’s user conference –and so a couple of items had to be pushed to today. First up, CENIT.
CENIT revenue up 16% in 2011 but significant slowdown forecast for 2012/2013
CENIT Group, a German reseller of Dassault Systèmes PLM and IBM’s content management solutions as well as its own products, reports that revenue in 2011 was up a strong 16% to €108 million, led by its software distribution business, which saw sales increase almost 30% to €41 million. CENIT’s consulting and services revenue was 8% to €55 million, while sales of the company’s own software grew 18% to €10 million, on increased customer adoption of “FASTSUITE and cenitCONNECT in the PLM sphere, as well as IBM FileNet System Monitor and ECLISO in the EIM field”.
Not all of CENIT’s growth was organic. The company acquired Transcat PLM AG of Switzerland during Q2 of 2011. Transcat contributed an unspecified amount (that appears to be on the order of €4 million), and led CENIT Switzerland to report revenue of just under €10 million (up from €4 million a year earlier).
CENIT’s North American subsidiary reported revenue of €10 million, up nearly 50% from 2010, attributed by CENIT to “a major one-off project as well as a positive overall orders situation. In the US, CENIT focuses on marketing its software products for the PLM field. These efforts primarily address clients from the aerospace and manufacturing industries.”
CENIT’s 2011 results have led it to recommend the payout of a €0.30 per share dividend.
Even though 2011 was a very good year, CENIT downplayed expectations for 2012. CENIT says that while the “overall economic situation in Germany is positive, developments in the international environment – particularly within the Euro zone – are difficult to forecast…” The company initiated guidance of revenue growth of 4% to 5% for 2012 and 2013, saying that it intends to focus on “profitable growth in all segments”.
SofTech back on track?
SofTech, developer of CADRA and ProductCenter, reported yesterday that revenue for the three months ending February 29, 2012 was $1.7 million, down 4% from last year, but with far greater profitability: Net income from continuing operations was $137,000, up a staggering 471% over the same period in the prior fiscal year. Product revenue was $530,000, up almost 50% from last year, while services revenue was $1.1 million, down 18%, due to a large customer who, a year ago, ended its maintenance contract with Softech.
CEO Joe Mullaney said in a press release, “Our operating performance continued to show steady improvement compared to the same periods in the prior year especially for product revenue and profitability… Developing profitable new revenue streams that leverage our expertise and technology has been a key focus of the new management team. Over the last year we have been working on a number of new product offerings. I am happy to report that one such initiative we started in June 2011 has been completed subsequent to the end of our third quarter and the first order satisfied in March 2012. We plan on having several announcements over the coming months to describe these new product offerings.