Delcam annual revenue up 17% in 2010

Unlike US software companies, Delcam plans to not only pay shareholder dividends, but to increase them 5% this year.

Delcam announced its 35,000th customer during 2010, Southern Spars, a New Zealand company specialising in the design and construction of spars and rigging for high-performance yachts. (Image courtesy Delcam)

CAD/CAM software developer Delcam (LON: DLC) saw revenue increase 17% in 2010, with sales of £36.6 million ($59 million), up 17% over £31.3 million ($50.1 million) revenue in 2009. Pre-tax profit rose substantially to £2.26 million ($3.6 million) compared with the £0.59 million ($0.95 million) last year.

Product revenue for 2010 was £25 million ($40.3 million); maintenance revenues was £11.6 million ($18.7 million).

The improved results were equally spread across all Delcam’s key markets in Europe, North America and Asia. The company said its newer territories in China and India also showed significant growth. Delcam credits its decision to not reduce R&D spending during the 2008-2009 downturn as crucial to its positive results in 2010. In 2010 Delcam spent 32% of its revenue (£9.4 million, $15.2 million) on research and development.

Unlike US-based software companies—which almost never pay shareholder dividends—Delcam is not only paying a dividend but increasing it by 5% to 5.5 pence a share.

Cash per share on December 31, 2010 is up significantly to $248.53. Only the British companies we cover, with their low number of traded shares, have such CPS numbers. Recent cash per share figures for Delcam:

Year           Cash per Shareholder

2010           $248.53

2009           $146.15

2008           $169.86