CADCAM developer Delcam is pleased to announce that the company achieved record six-month sales and increased profits during the first half of 2010. Sales increased by 12% over the same period of last year to £18.1 million, while pre-tax profits were substantially higher at £1.1 million, an improvement of approximately £790,000 on the first half of last year.
Other highlights of the opening six months of 2010 included the presentation of the company’s third Queen’s Award for Enterprise in the Innovation category for the development of design and manufacturing software for dental restorations, and the confirmation in the latest report from US analysts CIMdata that Delcam remains the world’s leading specialist supplier of CAM software, with the largest development team in the industry. Indeed, Delcam continues to increase its investment in research and development, which grew to £5.0 million in the first half of this year from £4.7 million during the equivalent period of last year.
Delcam saw software licence sales growth across all of its major markets, including North America and Europe, which continue to be our largest markets. However, the most significant increases were in Asia and South America, where licence sales rose by 48% and 50% respectively.
Maintenance revenues, derived from software maintenance and support contracts, contributed £6.3 million to the total, up from £5.8 million in the first half of last year, reflecting the positive response from customers to the latest versions of the company’s software. These revenues now account for approximately 35% of overall sales.
Commenting on the results, Delcam Chairman Peter Miles, said, "I am pleased to report a strong recovery in Delcam’s sales and profits in the first half of the current financial year. These encouraging results reflect recovery across all our major territories globally and were supported by our decision to maintain investment in product development and marketing during the downturn in order to gain commercial advantage.”
"As we look ahead over the remainder of the year, while we are very encouraged by the Company’s trading performance in the first half, the ongoing improvement in sales and profitability will be materially influenced by the final quarter of the year, which is our most important trading period, historically. At this early stage in the second half, we remain optimistic that the improving trend will continue and, if this remains the case, we would expect trading results for the year to 31 December 2010 to show a significant improvement on results for 2009.”
To read the full statement, please go to: www.delcam.com/general/investors/reports/interim_report2010.asp