MuM ups guidance on strong year to date

Oct 26, 2015 | Hot Topics

Germany’s Mensch und Maschine (MuM) today announced that the strong growth it had seen through the first 6 months of 2015 continued in Q3, with total revenue for the year-to-date up 16% as reported to €119 million. M+M Software was up a more modest 8% to €30 million, while the VAR Business was up 19% to  €89 million. Currency played a major factor, as “nearly one third of the VAR Business growth was due to the Swiss Franc increase against the Euro”. Even so, the company says the VAR business saw double digit organic revenue growth — which bodes well for Autodesk, its main OEM.11

Given strong year so far, CEO Adi Drotleff boosted guidance a bit for fiscal 2015, saying that he now expect sales north of €155 million, which would be growth of about 11%. That’s a slight adjustment, given that the target had been €150 million.

Let’s parse the details:

  • Q3 revenue was €37.9 million, up 17%
  • Q3 revenue from the Software business was €9.3 million, up 8%. For the year to date, Software revenue is roughly 83% from its CAM solutions, 13.5% from Gardening & Landscaping and 3.5% from Electrical CAD, a slight shift from 80%CAM / 15% Gardening & Landscaping / 5%ElectricalCAD a year ago.
  • Q3 VAR revenue was €28.6 million, up 21% as reported, though likely less on a constant currency basis given the ongoing Swiss Franc/€ exchange rate

By every measure shown by MuM, 2015 has shown terrific year/year growth, so why is Q4 forecast to be more modest? Q4 2014 total revenue was €37 million, with €11 million from software and €26 million from VAR; to get to the €155 million forecast for 2015, Q4 only has to be €36 million, below last year’s total. Perhaps some deals moved into earlier quarters or perhaps the key is in Mr. Drotleff’s “north of” remark — we’ll have to see.