Schnitger Corporation

AVEVA very happy with F13 results, has “a lot more in the tank”

EarningsCEOs lead interesting lives. In an interview with the CNBC Squawk Box team in the UK, AVEVA’s CEO Richard Longdon was asked if the company’s new Everything 3D (E3D) product was “CAD for smart people”. Well, yes — but the point of E3D is to make advanced design technology and data management available to a wider audience (that we hope is smart). Mr. Longdon tells investors that E3D showcases AVEVA’s leadership and innovation, that E3D “puts clear water between us and any competitor … and there’s a lot more in the tank”.

E3D doesn’t yet factor into AVEVA’s revenue picture but, even without its contribution, AVEVA had a very good fiscal 2013, ended March 30. As the company hinted earlier, revenue was up around the world and in all categories.

The details:

In conjunction with the earnings release, AVEVA announced that it is proposing to return about £100 million to shareholders in a special dividend. Mr. Longdon says that AVEVA will be left with about £100 million in net cash after the distribution, and will generate more cash during the year — so why not take care of shareholders? Mr. Kidd underscored the fact that AVEVA will have plenty of cash on hand for acquisitions, and that its M&A pipeline remains intact.

AVEVA doesn’t give guidance, other than to say that they expect oil & gas to continue to grow with “solid demand” in power, especially nuclear in China and India. London City analysts, however, are modeling total revenue of between £241 million and £264 million, or growth of between 10% and 20%.

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