Graphisoft Releases Q3 2001 Results
Revenues for quarter and year-to-date fall below 2000 figures, but strong growth achieved in new FM business area; impairment charge caused a 3.1 million EUR loss
BUDAPEST, November 14, 2001 - Graphisoft today announced revenues of 6.6 million EUR and 21.2 million EUR for the 3- and 9-month periods ended September 30, 2001. These figures are below those of 2000 by 8.6% and 6.7%, respectively. However, the facilities management business, the most promising new area of product development for the company, achieved a 93% increase in sales in the third quarter and 45% in the 9-month period as compared to last year.
A 3.1 million EUR impairment charge - the previously announced write-off of investment-related liabilities - resulted in a net loss of just over 3 million EUR for both the quarter and the year to date.
|Key figures*||3 months ended Sept 30||
|9 months ended Sept 30||change
|Operating expenses excluding one time impairment charge||6,27||5,529||13.4%||18,145||16,156||12.3%|
|Net income per share||(0.31)||0.10||-407.3%||(0.30)||0.36||-182.4%|
* All amounts are in thousand EUR; net income per share is in EUR
**EBITDA: Earnings Before Interest, Tax, Depreciation, Amortization (and impairment charge)
In the company's new product development areas, facility management showed dramatic growth, but this success could not yet offset the general revenue decline, due to unfavorable global market conditions. The necessary development and marketing expenses associated with the new product lines continue to affect income. The still high inflation rate in Hungary, where the company incurs most of its expenses, and the unanticipated appreciation of the Hungarian Forint eliminated the positive effects of the strict cost saving measures the company put in place at the beginning of the year.
The release of ARCHICAD 7.0 in several markets this summer resulted in a positive second quarter, but this could not compensate for the general decline in sales felt during the third quarter. On the whole, sales in most geographical segments decreased over the same 9-month period of last year. In Germany, the strongest market for the Company, the release of ARCHICAD 7.0 delivered impressive results, increasing revenue by 34% in the second quarter. The momentum continued to push revenues up in the third quarter (7% growth over 2000), even beyond the product promotion period, and despite unfavorable AEC market conditions.
"We have critically evaluated our strategy and its implementation in the face of the current global economic and political instability, and we stand behind it," reports Bojár. "The AEC market has stagnated in the last few years, but there is still a tremendous growth potential in the long term, which will come due as the building industry grasps the potential of such systems."
Graphisoft has been continuously developing and promoting its Virtual Building™ concept of building design and maintenance since 1984. Recently those efforts have been bolstered by strong support from industry analysts and competitors' own product strategies, which marks the true beginning of change in the way the industry works. Says Bojár, "We believe this change in perception towards this 'single building model' will translate to impressive growth in the future for those companies that have the right technology and the necessary assets."
The complete report can be found here.