The only publicly traded dedicated CAM software developer rebounded well from 2009.
Dedicated CAM software developer Delcam reports record six-month sales and increased profits during the first half of 2010. Revenue was £18.1 million ($28.2 million), up 12% over the same period in 2009. Pre-tax profits were substantially higher at £1.1 million ($1.7 million), an improvement of approximately £790,000 ($1.2 million) over the first half of 2009.
As the only public company that specializes in computer-aided manufacturing software, Delcam is a bellwether for manufacturing, especially smaller businesses.
Delcam said new licences sales grew as a percentage of total income, primarily due to lower sales in 2009, not due to a decrease in maintenance. Maintenance now accounts for 35% of revenue.
New software licence sales grew globally, with the most significant increases in Asia (up 48%) and South America (up 50%). Total revenue by regions, for the first half of the year:
- Europe £9,964,000 ($15.5 million) (2010) vs. £9,602,000 ($15 million) (2009)
- Americas £4,274,000 ($6.7 million) (2010) vs. £3,672,000 ($5.6 million) (2009)
- Asia £3,863,000 ($6 million) (2010) vs. £2,826,000 ($4.4 million) (2009)
Revenue by business segment, for the first half of the year:
- Software £8,993,000 ($14 million) (2010) vs. £6,942,000 ($10.8 million) (2009)
- Maintenance £6,276,000 ($9.8 million) (2010) vs. £5,814,000 ($9.1 million) (2009)
- Services £2,157,000 ($3.4 million) (2010) vs. £2,850,000 ($4.4 million) (2009)
- Other £675,000 (2010) vs. £494,000 ($1,052,200) (2009)
Unlike US-based software companies, UK-based Delcam regularly pays a dividend to shareholders. Delcam will pay a dividend of 1.35p ($0.021) per ordinary share on September 17. Cash per share on June 30, 2010 was $149.08, down slightly from $151.12 on June 30, 2009. The UK companies we cover have a cash per share figure that dwarfs their US counterparts, mostly because they have fewer shares outstanding.
