Schnitger Corporation

ESI falters, costs outpace revenue at year end


ESI yesterday provided more details on its results for the fiscal year ended January 31, 2013. As we posted after the preliminary announcement last month, total revenue was up 16% year/year to €109 million. However, the company’s cautious outlook and higher-than-expected expenses led its share price to tumble 17% in mid-day trading on the Paris Bourse. Said CEO Alain de Rouvray in prepared remarks, “the[se] results are below our expectations, impacted by an unexpected slowdown in growth at the end of our financial year and the continuation of M&A marketing and integration investments. The economic context leads to more cautious growth prospects and tighter control over operating costs. ”

The preliminary report was a bit short on details, so here’s what we learned with this new report (the annual report isn’t published yet, and will likely contain even more information):

ESI highlighted 4 main points in its approach to the market in calendar 2013:

ESI Group didn’t give details on its cost containment efforts. Analysts are now modeling total revenue of €117 million, which would be an increase of 7% over fiscal 2013.

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