A quick update: German company Mensch und Maschine Software (MuM) announced today that a “solid Q2” build on the success of a “strong Q1” to lead to a “good first half of fiscal year 2012”. Recall that MuM sold its distribution business last year and is now focused on reinventing itself as a value-added reseller and maker of proprietary software products Open Mind (CAM) and Dataflor (Gardening and Landscaping), so we need to compare the first half of 2012 for both the continuing operations and total revenue:
Total revenue in the first half was €57 million, down 47% due to the loss of revenue from the exited businesses.
Revenue from continuing operations, however, was up. Revenue from the MuM Software segment was up 14% to €15 million, while revenue from the VAR business was up 21% to €40 million.
CEO Adi Drotleff scaled back expectations for the year, saying that the company now sees the effects of an economic slowdown. He forecasts organic growth of 10% to 13%, but sees significant margin potential for the remaining business. At the end of Q1, the company saw revenue form 2012 of about €150 million; today’s announcement lowers that target to about €135 million.
The economy also has led MuM to scale back its acquisition activity. During the first half, MuM acquired two VARs (Synergy in Italy and MaxCAD in Romania), which are expected to make “significant contribution to business beginning from Q3”. The company had planned to do more deals, however, but now deems it prudent to “calmly go into a waiting position and watch the further market development”.
[Interesting comment, given how many acquisitions I seem to be writing about right now. — Ed.]
MuM is often the first PLM company to report numbers, so its view that Q1 and Q2 were good but that the rest of the year will slow down is something we’ll have to watch. SAP, PTC, DS and 3D Systems report later this week.
