For those of you who are wondering: AVEVA still hasn’t been acquired. In fact, CEO Richard Longdon told CNBC and told that reporter that “there’s nothing to say” about a possible acquisition and that AVEVA is not talking with Schneider, GE or Emerson about a potential acquisition. Mr. Longdon seemed quite amused about the whole thing but made clear that AVEVA is being run as an independent software company, for the long haul.
So what about the results reported for fiscal 2015, ended March 31? They were in line with the company’s April announcement (not really surprising), with total revenue of £209 million, down 12% year/year as reported and down 7% on an organic, constant currency (cc) basis. That’s pretty good, given much of the dire musings around the falling price of oil, cancelled or postponed projects in upstream oil (production) and the continuing doldrums in shipbuilding. Mr. Longdon said that the strengthening Sterling had a negative 6% impact on reported revenue.
Mr. Longdon told investors that AVEVA saw “substantially more challenging conditions in the Oil & Gas end market [around 40% to 50% of total revenue –Ed.]”, which affected customer buying. Business in Latin America continues to be affected by political problems in Brazil. It’s a mixed bag of OK in constant currencies, slightly down in a bunch of categories. Bright spots appear to be North America (who thought we’d say that about AVEVA?!), the power market and sales to its largest customers.
From a product perspective, Engineering & Design revenue was down 8% in cc to £183 million while Enterprise Solutions revenue was up 3% cc to £26 million (that includes £1 million from 8over8) . The company said that AVEVA E3D, released in early 2013, now has 230 customers of varying installation size and is starting to contribute meaningfully to revenue. Since release, AVEVA says it’s seen £11 million in cumulative revenue.
AVEVA doesn’t give guidance, but it appears that City analysts expect total revenue for fiscal 2016 to be around £220 million.
Oh, and yesterday’s share price gain of 9% has been pulled back; the price is down 4% as I write this. See my musings on this whole thing.
More after I’ve had a chance to digest all of the details — now, I need to head back to PLM Connection, the Siemens PLM user conference.