Schnitger Corporation

ESI falters, costs outpace revenue at year end

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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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