SOURCE: Lectra

April 27, 2007 15:46 ET

LECTRA: First Quarter 2007

PARIS -- (MARKET WIRE) -- April 27, 2007 -- A Successful Launching of the New Technology Offering at Lectra World 2007

- Revenues: EUR 49.5 million (+1%)(1)

- Income from operations, net income and free cash flow at breakeven

(1) like-for-like

+-------------------------+--------------------+--------------------+
|(in millions of euros)   |January 1 - March   |January 1 - March   |
|                         |31, 2007            |31, 2006            |
+-------------------------+--------------------+--------------------+
|Revenues                 |49,5                |50,9                |
+-------------------------+--------------------+--------------------+
|Change (like-for-like)(1)|1%                  |                    |
+-------------------------+--------------------+--------------------+
|Income from operations   |-0,1                |2,2                 |
+-------------------------+--------------------+--------------------+
|Net income               |0,2                 |1,7                 |
+-------------------------+--------------------+--------------------+
|Free cash flow before    |0,2                 |6                   |
|non-recurring items(2)   |                    |                    |
+-------------------------+--------------------+--------------------+
|Stockholders' equity at  |69,8                |72,2                |
|March 31, 2007 and       |                    |                    |
|December 31, 2006        |                    |                    |
+-------------------------+--------------------+--------------------+
|Net cash at March 31,    |5                   |8,7                 |
|2007 and December 31,    |                    |                    |
|2006                     |                    |                    |
+-------------------------+--------------------+--------------------+
Paris, April 27, 2007. The Board of Directors of Lectra, chaired by André Harari, today reviewed the unaudited consolidated financial statements for the first quarter of 2007.

(Detailed comparisons between 2007 and 2006 are like-for-like)

A Successful Launching of the New Technology Offering at Lectra World 2007

Lectra organized a series of events--the Lectra World 2007--to unveil its technological innovations to the world. Lectra World 2007 began by gathering together more than 1,000 Lectra employees from all over the world in Bordeaux, France, from January 31 through February 2, 2007. On February 5 and 6, 400 customers, prominent figures, institutions, and journalists from around the world attended the congress dedicated to the fashion industry. Lectra World 2007 continued in Bordeaux in March with two congresses dedicated to the automotive, aeronautical and marine industries, and to the furniture industry, attended by a total of 250 people, and then in Shanghai, China on March 22 with 330 people in attendance.

Lectra notably unveiled its new generation of Vector cutting systems, which represent an R&D outlay of more than EUR 12 million and mobilized more than 80 R&D engineers over three years--as well as its new software offering.

The company had forecasted in its report published on February 9, 2007 that first-half 2007 sales activity was likely to suffer from the product launches, which could temporarily depress orders, revenues, earnings and free cash flow--particularly in the first quarter. Overall, first-quarter activity was better than expected.

Growth in Orders

Business activity for Q1 2007 concluded with a solid 11% increase (+EUR 2.5 million) in total orders for new software licenses and CAD/CAM equipment relative to Q1 2006.

The late recording of orders, coupled with the progressive ramping up of production facilities for the new generation of automated cutting machines, explains the deferral of revenues from new systems sales, which amounted to EUR 24.1 million, down 5% relative to Q1 2006. Recurring revenues (EUR 25.5 million) increased by 7%.

Altogether, Q1 2007 revenues amounted to EUR 49.5 million, up 1%; they were down 3% at current exchange rates.

Lectra registered a loss on operations of EUR 0.1 million in Q1 2007. On a like-for-like basis, income from operations worked out to EUR 0.6 million, down EUR 1.6 million relative to Q1 2006 (EUR 2.2 million). The operating margin was 1.1%, down 3.2 percentage points.

The overall cost of Lectra World 2007 (EUR 1.5 million) was fully expensed in the first quarter.

Free cash flow before non-recurring items in the quarter (EUR 0.2 million) was essentially the same as net income.

2006 Dividend Payment

Subject to approval at the Shareholders' Meeting of April 30, 2007, the dividend in respect of 2006

(EUR 0.15 per share) will be made payable on May 10, 2007.

Project to Reduce the Company's Capital Stock Via a Public Stock Buyback Tender Offer

The Board of Directors decided to submit to the April 30, 2007 Extraordinary Meeting of Shareholders a proposal to reduce the capital stock via a public stock buyback tender offer (see press releases from March 22, April 2, and April 17, 2007).

The proposed tender offer would apply to around 7 million shares. The offer price is EUR 6.75 per share (ex-dividend). The offer will be open from May 3 to 22, 2007.

A statement, scheduled for publication on May 2, 2007, will notify the public of the result of the vote on this resolution.

Business Trends and Outlook

In Lectra's 2006 annual report, the Board of Directors stated that Lectra entered 2007 in a position of strength. It has bolstered its teams significantly, and these are now motivated and ready for action. It has an entirely new, highly competitive product offering. Its financial fundamentals have improved in recent years and these are now extremely robust. Finally, it continues to step up its investment in R&D, with an ambitious plan, guaranteeing its technological leadership.

Second quarter revenues, earnings and free cash flow are likely to continue to be affected by the progressive ramping up of manufacturing facilities for the new generation of cutting machines.

The level of orders in the first quarter reinforces the forecast made by the company in February, for full-year 2007: revenues of between EUR 220 and EUR 235 million (+4% and +11%, respectively), and income from operations excluding non-recurring items of between EUR 11.5 and EUR 16.5 million (a rise of between 0 and 43%). These forecasts are based on an assumed parity of $1.33/EUR 1. Comparisons with 2006 are based on constant exchange rates (like-for-like). The company has not hedged its net dollar exposure for 2007 at the date of publication.

The Management Discussion and Analysis of Financial Condition and Results of Operations for Q1 2007 are available at www.lectra.com. Q2 2007 results will be published on July 27, 2007, after the close of Euronext Paris.

The Public Stock Buyback Tender Offer document is available on Lectra's Web site (www.lectra.com) and on the Web site of the Autorité des Marchés Financiers (www.amf-france.org). Copies may be obtained at no charge from:

Lectra

16-18, rue Chalgrin

75016 Paris

Tel : +33 (0)1 53 64 42 00

investor.relations@lectra.com

Natexis Bleichroeder

subsidiary of NATIXIS

100, rue Réaumur

75002 Paris

Société Générale

CAFI/EUR/ECM

17, cours Valmy

92972 Paris-La Défense Cedex

About Lectra :

With 1,500 worldwide employees, Lectra is the world leader in software, CAD/CAM equipment and related services dedicated to large-scale users of textiles, leather and industrial fabrics. Lectra addresses a broad array of major global markets, including fashion (apparel, accessories, footwear), automotive, aeronautical and furniture.

Lectra (code ISIN FR0000065484) is listed on the Eurolist (compartment B) of Euronext Paris.

This information is provided by CompanynewsGroup

Contact Information


  • Contact: Angélique Cuilhé
    email: Email Contact
    Phone: +33 (0)1 53 64 42 95
    Fax: +33 (0)1 53 64 43 40