REVENUES FOR THE 1ST HALF OF 2010: € 69.8 MILLION
Neuilly-sur-Seine, France, 28 July 2010: Linedata (LIN:FP), the global provider of specialised solutions for the asset management, insurance and credit industries, reports revenues of € 69.8 million for the 1st half of 2010, a decline of 6.4% compared to the 1st half of 2009, representing a decline of 6.9% at constant exchange rates.
During the 2nd quarter of 2010, Linedata achieved sales of € 35.5 million, compared to € 37.6 million in the 2ndquarter of 2009, representing a decline of 5.6% at actual exchange rates and a decline of 7.9% at constant exchange rate. This is a more moderate decline in revenues than that seen during the 1st quarter of 2010. The Group closed 44 new deals (of which 9 with new customers) with a total contract value of € 18 million.
ANALYSIS OF PERFORMANCE BY GEOGRAPHICAL REGION
SOUTHERN EUROPE (Q1: € 17.9 million, down 9.1%; Q2: € 18.3 million, down 5.2%)
This region showed good resistance thanks to the high level of revenue recurrence of the Linedata Noee and Linedata Chorus products and growth in the insurance division. The Credit and Finance segment, which had recognised significant perpetual licence revenue in the 1st half of 2009, declined by 12.8% over the same period in 2010.
NORTHERN EUROPE (Q1: € 6.9 million, down 11.5%; Q2: € 6.4 million, down 20.1%)
The decline in sales in this region was due to delayed contract signings and the non-renewal of certain contracts with traditional funds. Linedata has, nonetheless strengthened its sales team and continued its product development efforts, in order to prepare for a business recovery in this region.
NORTH AMERICA (Q1: € 8.5 million, down 1.7%; Q2: € 10.0 million, up 7.6%)
The US business was driven by the buoyant Linedata Longview and Linedata Compliance offerings thanks to successful sales activity which included 3 major contracts signed during the second quarter.
Linedata is benefiting in this region in 2010 from the positive effects of the many contracts signed over the last few years, which provide a sound and growing revenue basis.
ASIA (Q1: € 0.9 million, up 20.5%; Q2: € 0.8 million, down 19.4%)
Linedata is continuing its efforts to establish its business in this region with a high growth potential.
OUTLOOK
In this context of a decline in revenues during the first half of the year, Linedata continued to implement cost cutting steps necessary to increase its profit margins. As a result, a further improvement in profitability levels is expected over the 1st half of 2010.
The Research and Development effort was unaffected by these reductions in costs.
Shareholders’ agenda: publication of 2010 half-year results: 8 September after close of trading.