Earnings are threatening to get too far ahead of me! A quick catch-up on two that you need to know about, Nemetschek and Trimble. Recall that Nemetschek is Europe’s largest AEC software supplier and that Trimble is increasingly important in engineering software, with its acquisition last year of Tekla and its proposed buy of Google’s SketchUp.
Nemetschek off to good start in 2012
- Nemetschek Group reported revenue of €42 million, up 7% from last year. License revenue was €20 million, up 8%; revenue from maintenance was €19 million, up 6%
- Revenue from the company’s Design segment was €34 million, up 8%, driven by Graphisoft, Vectorworks and the Engineering business unit. Revenue from the Multimedia segment was €3.6 million, up slightly on a tough comparable a year ago, while revenue from the Build segment was €3.4 million, essentially flat, as customers continue to hold spending due to economic uncertainty. Revenue from the Manage segment was €1 million.
- CEO Tim Alexander Lüdke said that the Q1 “results indicate that we are on the right track, and we can confirm our outlook for 2012,” of revenue around €180 million.
Trimble core growth in high teens
- Trimble Navigation announced first quarter revenue of $502 million, up 31% from the first quarter of 2011. Product revenue was $399 million, or 79% of total revenue; service revenue was $57 million, or 12% of total; and subscription revenue was $46 million, or 9%. The company does not break out organic versus acquired revenue, but did hint that the organic growth rate was “in the high teens”.
- CEO Steven Berglund led off the investor call by saying that Trimbles’ end markets “remain workable”, although he characterized only agriculture as “robust”. Commercial and residential construction remains “weak”, although he does see the prospect of improvement later in 2012 or in 2013. On a geo basis, Europe “remains volatile and uncertain”, and those conditions “have the potential for significant spillover effects worldwide”. That said …
- Engineering and Construction (E&C) revenue was $249 million in Q1, up 31%, reflecting organic growth in heavy, highway and survey instruments; strong sales of machine control and survey products across North America, Europe and Asia Pacific; and by acquisitions. Balancing this positive news was the fact that E&C is still affected by the “dormant commercial and residential construction market, slower sales in China related to the recent problems specific to railway construction and cautious decisionmaking by users in Europe”.
- Field Solutions revenue was $148 million, up 20% due primarily to increased sales of agricultural and Geographic Information System (GIS) products and acquisitions. Mobile Solutions revenue was $78 million, up 76% primarily due to the PeopleNet acquisition. Advanced Devices revenue was $27.5 million, up 3% when compared to the first quarter of 2011.
- Mr. Berglund briefly addressed the proposed SketchUp acquisition, saying that SketchUp is an “effective tool for millions of architectural, engineering and construction users. We see SketchUp as a central platform for providing the glue that will couple field operations with other enterprise activities. SketchUp, together with Tekla and a number of other recent acquisitions and internal developments, gives us the tools to provide these more complete solutions. Our initial focus will be on providing solutions for the cadastral, heavy civil and building construction markets.”
- As far as financing the acquisition, Mr. Berglund told investors that he is “comfortable with our ability to manage anticipated postSketchUp levels of debt.” The company’s guidance includes a $100 million to $150 million increase in debt levels; one analyst on the call asked it that was due to SketchUp. Mr. Berglund declined to be specific but did say that “We have not disclosed the SketchUp number, by mutual agreement with Google. But, every quarter we do 2 to 3 acquisitions. If you look at Q1, that’s what we did. So it’s all up, it is captured in that number.”
- Trimble announced that for second quarter of 2012, it expects revenue between $510 million and $515 million.