Nemetschek Revenues up by 10 percent in Q1

Munich - Nemetschek AG, Europe’s largest vendor of software for architecture and the building industry, remained on its growth path in the first quarter of 2011. Revenues increased by 10 percent to 38.8 million euros. The operating result (EBITDA) went up by 11 percent to 9.3 million euros, which corresponds to an EBITDA margin at the same level as last year (24 percent). As a result of positive interest income the net income (group shares) increased disproportionately by 48 percent to 5 million euros.

Revenues from abroad increased by 15 percent

Revenues from long-term maintenance contracts increased by 15 percent to 18 million euros in the first quarter; they now account for 46 percent of overall revenues (up from 44 percent in the previous year). Revenues from license sales increased by 7 percent to 18.6 million euros in the first quarter. In the foreign markets, revenues increased by 15 percent to 24.2 million euros – the share of revenues from abroad thus rose from 59 to 62 percent of overall revenues. In Germany, revenues increased slightly from 14.3 to 14.6 million euros.

The Nemetschek Group managed to grow in all of its essential business units. In the Design segment, revenues increased by 8 percent to 31.1 million euros, the EBITDA margin in this segment was 20 percent, after 21 percent in the previous year. In the Multimedia segment, revenues increased by almost 50 percent to 3.4 million euros. This was partly due to the successful introduction of maintenance contracts in the previous year and the gradual realization of the corresponding deferred revenues. Consequently, the EBITDA margin in the Multimedia unit increased from 38 to 53 percent. In the Build segment, revenues increased by 8 percent to 3.5 million euros, the EBITDA margin amounted to 32 percent (41 percent in the previous year). In the Manage unit, revenues remained marginally below the previous year’s level at 0.9 million euros (1.0 million euros), the EBITDA margin amounted to 6 percent, after 10 percent in the same period in the previous year.

Earnings per share up by almost 50 percent

As a result of the growth in revenues, the operating result (EBITDA) went up from 8.3 million euros to 9.3 million euros; the EBITDA margin remained stable at 24 percent. Following the announced growth initiatives, the operating costs increased by 9 percent to 32.7 million euros. Thanks to positive interest income of 0.7 million euros the net income (group shares) increased disproportionately by 48 percent to 5 million euros (previous year: 3.4 million euros). The earnings per share (group shares, basic) are 0.52 euros after 0.35 euros in Q1 2010.

The group achieved a cash flow for the period of 9.2 million euros, an increase of 18 percent. Following the reduction in liabilities, the cash flow from operating activities was 12.8 million euros – at the same level as in the first quarter of 2010. The cash flow from investment activities was -1.2 million euros (previous year: -1.0 million euros) and mainly comprises the replacement of fixed assets.

The cash and cash equivalents increased by 10.7 million euros to 41.3 million euros compared with December 31, 2010. The equity quote of the Nemetschek Group is 57 percent.

Forecast confirmed

For fiscal 2011 the group plans to grow by 10 percent and the development in the first quarter confirms this forecast. “As expected, we grew above all abroad, and we intend to pursue this trend,“ emphasized Ernst Homolka, CEO, Nemetschek AG.

In view of the revenue expectation and the planned investments in future growth, Nemetschek continues to forecast an operating result (EBITDA) of 40 million euros for 2011, which would represent an EBITDA margin of 24 percent. The group will succeed in almost completely repaying the loan taken to finance the acquisition of Graphisoft this current fiscal year. The interest charges will likely drop and the annual net income – as forecasted at the beginning of the year – will increase to over 20 million euros.