Licensing, the mainstay of the ESI Group’s business model, accounted for 76% of total revenue this quarter. License sales in the first three months of the fiscal year1 were up 5.6% to €20.1 million. The dynamic performance of our installed base (representing 79% of the Licenses business) was driven by renewals and additional volume, with a repeat business rate of 89.4%. Note that perpetual licenses sales decreased by €1 million vs. the same period last year, another indicator of long-term sustainability and the increasing efficacy of our strategy to focus on annual rental licenses with high renewal rate.
Services, representing 24% of total revenue, include studies for industry, advanced application research and R&D and also training. Revenue for this business line came out at €6.5 million (down 9.9% year to year). This does not reflect the number of important projects confirmed in the period These include the multi-year agreement signed with EDF for high value-added engineering studies related to design and maintenance of nuclear power plants a 6 year contract with the option to extend for a further 4 years.
In a geographical mix where Europe and Asia represent 82% (43% and 39%, respectively) of quarterly sales, revenue in the Americas region picked up amplified by a currency effect, and driven by license sales, especially in the aeronautical industry.
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About ESI Group
ESI Group is a leading innovator in Virtual Prototyping software and services. Specialist in material physics, ESI has developed a unique proficiency in helping industrial manufacturers replace physical prototypes by virtual prototypes, allowing them to virtually manufacture, assemble, test and pre-certify their future products. Coupled with the latest technologies, Virtual Prototyping is now anchored in the wider concept of the Product Performance Lifecycle™, which addresses the operational performance of a product during its entire lifecycle, from launch to disposal. The creation of a Hybrid Twin™, leveraging simulation, physics and data analytics, enables manufacturers to deliver smarter and connected products, to predict product performance and to anticipate maintenance needs.
ESI is a French company listed in compartment B of NYSE Euronext Paris. Present in more than 40 countries, and addressing every major industrial sector, ESI Group employs about 1200 high-level specialists around the world and reported annual sales of €139 million in 2018.
For further information, go to www.esi-group.com.
1 Exceptionally, 11-month financial year ending on 31/12/2019, subject to the approval of the AGM meeting on 18 July 2019; Q1 reported here covers February, March and April of our traditional 12 months fiscal year
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