Graphisoft Announces Q1 2001 Results
Loss for the quarter; tight cost control measures in place to ensure profitable year
BUDAPEST, May 10, 2001 - Graphisoft today announced revenues for the three months ended March 31, 2001, at 6.1 million EUR, representing a 15.7% decrease over last year's figures from the same period. The Company posted a loss of 648 thousand EUR.
|Key figures*||3 months ended March||% of change|
|Net income per share (EUR/share)||(0.06)||0.16||-140.2%|
* All amounts are in thousand EURO; net income per share is in EURO
"As an IT company serving the building industry, Graphisoft has felt the effects of both the slowdown in the previously overheated IT industry, and the overall economic slowdown in its major markets," states Graphisoft president and CEO Gábor Bojár. "Graphisoft addressed these challenges by restructuring its organization to make better use of existing resources."
In addition to reducing the staff by 18 members at its headquarters, the Company also consolidated operations in the US and the UK. Furthermore, its shareholding executives waived, and its top executives froze, their compensation for the year 2001. These measures will bring a savings of approximately 1 million EUR for the year, allowing the Company to continue investing in its new products.
Due to the announcement of the new ARCHICAD release - the German language version of ARCHICAD 7.0 began shipping in May and will be followed closely by English and French - many of Graphisoft's current and potential customers postponed their purchases until the availability of the new version. This affected Q1 sales adversely. Revenues decreased in all geographical segments in the first three months of the year. ARCHICAD license revenues dropped by 27.8%; within this, upgrade revenues fell by 70% as compared to the same period of 2000.
On the contrary, revenues coming from facility management software sales and service rose substantially over Q1 2000, largely due to the contribution of Drawbase. Sales of the Graphisoft Group's HVAC and building electronics design software were 12.4% higher than last year. The newly founded GDL Technology Inc. has now established the sales and marketing foundations to launch aggressive campaigns towards the building component manufacturer industry.
Operating expenses grew by almost 40% during last year, and by 36.8% in the first quarter of 2000. Bringing their growth down to 19.4% in the first three months of 2001 is the first result of the aforementioned measures. The Company expects a relatively modest 10% increase in operating expenses for the whole year.
"With the increase in upgrade and new license sales that ARCHICAD 7.0 will bring, the further market acceptance of our new products, and the management's commitment to tight cost control, Graphisoft can remain profitable in year 2001, despite the macroeconomic challenges," Bojár says.The complete report can be found here.