CENIT AG announced earlier this week that it exited a challenging 2013 having “laid the groundwork for future earnings growth in a number of segments”. Noteworthy is that sales of the reseller’s own software continued to grow, and outpaced all other aspects of the business. This is still a small part of the total but the outlook is promising and, wrote the management board, “in the years to come, it will again be one of most important goals of our enterprise to expand sales of our own software.”
Total revenue for the year was €119 million, flat y/y. Sales in the Enterprise Information Management (EIM) segment were down 3% to €28 million while sales in the Product Lifecycle Management (PLM) segment were up 1% to €91 million.
In the PLM segment, CENIT resells software from Dassault Systèmes and SAP, as well as its own cenitCONNECT and FASTSUITE. In the EIM segment, it resells products from IBM (Filenet). The management board said that the revenue decline in EIM was largely due to a reorganization of that business during the second half of the year, a restructuring to enhance future profitability.
CENIT’s business includes consulting and services, which saw revenue decline 2% y/y to €56 million. Sales of third-party software was up 2% y/y to €50 million, but, again, the standout in 2013 was sales of CENIT’s proprietary software, which grew 4% to €12.8 million.
CENIT also gave guidance for 2014: The company forecasts revenue growth of 5%, and expects all parts of the business to grow.
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I think that’s it for PLMish earnings reports for 2013. We’ll do a general recap next week but I think it’s safe to say that it wasn’t an awful year, but most people are glad to put it behind them. Bring on 2014!
