Delcam hits a record — again

Delcam last week reported its fifth consecutive half-year of record revenue. For the first half of 2012, revenue was up 15% to £23 millon. If the second half continues the pattern, Delcam should see revenue up 14% to 15% for the year.     The details:

• License sales led revenue growth, up 10% for the first half of 2012 to £11.6 million.
• Maintenance revenue was up 7% to £6.8 million.
• Services revenue was up 29% to £2.8 million.
• By geography, revenue from the Americas was £5.4 million for the period, up 17%. Delcam says “the recovery in manufacturing” is making the US one of its fastest-growing markets. This rapid growth is coming at some costs as the Americas is Delcam’s least profitable region — but it did swing to a profit for the first half of 2012; in the year-ago period, the region reported a slight net loss.
• Revenue from Europe was  £11.7 million, up 9%, led by Germany, which delivered “strong sales”.
• Revenue from Asia was £5.8 million for the period, up 24%. Sales in Japan “recovered well” from the natural disasters that occurred there in 2011.
• The company also saw good growth in sales of new software licences in Russia, Korea and India, while the UK subsidiary produced its best sales of software “in many years”.

Chairman Peter Miles said that the outlook is good, too: “We remain optimistic that the trading improvements seen in the Group will continue for the remainder of the year, provided that there is no significant deterioration in the general financial climate.” Delcam doesn’t give forecasts, but London City analysts expect the company to report revenue of around £45.7 million. That’s up only 9% over last year — seems pessimistic given how business has been so far in 2012.