The Mumbai-based PLM vendor and services provider prefers to point to sequential results to paint a more positive view of their results. The stock is up considerably, but not when compared to India’s largest firms.

[The conversion from India Rupees (Rs) to US Dollars in this article is $1.00 = Rs 45.5080.]

Geometric Ltd., (NSE: Geometric), the Mumbai-based PLM software and services provider, posted sharply lower results for its most recent quarter. Sequential results show the company is gaining ground.

For the third quarter of Fiscal 2010 (ended December 31, 2009) the company posted operating revenue of Rs 1,268.75 million ($27.9 million), down 31.6% from Rs 1,630.78 million ($35.8 million) in 3Q09. Operating profit in 3Q10 was Rs 75.59 million ($1.66 million), down 22% from Rs 242 million ($5.3 million) a year earlier.

In announcing the results, the company focused on its quarter-over-quarter increases. This would be comparing June-through-August of 2009 with October-through-December. In most countries where Geometric operates, including the US and Canada, Oct.-Nov.-Dec. results are generally much higher than the August quarter.

Business Highlights
Geometric says it added 10 new customers during 3Q10, for a total of 105 active customers, including 19 accounts spending more than $1 million annually. Wins during the quarter included a PLM customization project for a Japanese automotive OEM; a new customer in the healthcare space with a combined offering of software development and product engineering; plant redesign and layout work for a new industrial customer; engineering product design for one of the largest automotive OEM; extension of an existing maintenance and support contract with a European industrial major.

As shown in the first chart below, Geometric stock is up almost 50% since November 1, 2009. It is currently underperforming the Standard & Poor’s “Nifty” index of 50 large companies on the National Stock Exchange of India (see second chart). §