Schnitger Corporation

Exa ends year on weak note, looks to growth in F2014

NewsExa Corporation reported lackluster results for the quarter that ended January 31, 2013, but says that business has already picked up, leading to optimism for fiscal 2014.

CEO Steve Remondi told investors that the budget delays seen in FQ4 are largely behind them and that a significant portion of the revenue expected for FQ1 is already booked.

Exa reports signing 45 new customers in fiscal 2013, including 15 ground transportation OEMs (3 automotive, 2 highway truck, 8 off-highway, and 2 train), a dozen suppliers to ground transportation OEMs and 5 accounts in new market like aerospace.

The details:

For the full year, revenue was up 6% to $48.9 million. License revenue was $41.2 million, an increase of 6%, while project revenue was $7.7 million for fiscal 2013, up 8%. The split by geo was 45% from Europe; 24% from the Americas; and 31% from Asia.

Mr. Remondi is optimistic about fiscal 2014, saying that “the expected return of customer spending in the new calendar year appears to be materializing”. He told investors that, of Exa’s top 10 customers, only 1 didn’t increase their usage of Exa’s solutions in Q4 — that, plus the generally high level of renewals leads Mr. Remondi to believe that revenue growth will “reaccelerate” in fiscal 2014.

Exa continues to invest in R&D for new industries like oil & gas, the user experience (automation), optimization, solvers and an enhanced cloud offering across all products. The cloud product is currently in early beta, but will be released later this year.

For FQ1, Exa expects its typical seasonal decline from Q4 to Q1, or revenue in the range of $12.1 million to $12.5 million, which would be an increase of 7% to 11%. For the year, the company expects total revenue of between $55 million and $58 million, up 12% to 19%.

Exit mobile version