FY 2005 consolidated revenues higher by 43.24%
Operating margin expands 348 basis points to 49.2%; Net Profit higher by 41.5% at
Rs. 460.3 million; EPS at Rs. 45.27 per share.
Bangalore, June 29, 2005: Cranes Software International Ltd. (Cranes Software), a global scientific and engineering software solutions provider, today announced its audited results for the year ended March 31, 2005.
Commenting on the performance, Asif Khader, Managing Director, Cranes Software International Limited, said:
"Translating focused research based technology initiatives into tangible financial value is at the core of Cranes Software's operating philosophy. Having delivered yet another sterling performance, our Board has justified the confidence reposed in us by our shareholders by rewarding them with a significantly higher dividend and recommended a bonus issue of shares. We are confident that our commitment to international research activity will continue to translate into expanding shareholder value in future.
In FY 2005, we launched new versions of our proprietary software products; acquired the NISA product line in the engineering software space; entered the IT services space to deliver high value solutions to our clients; expanded our worldwide sales and marketing presence; augmented our Board and key management and operations teams; and added substantial talent in key R&D and front-end sales functions. For our efforts we have been rewarded through widespread recognition - Deloitte Touche Tohmatsu once again picked Cranes Software in its Asia Pacific Technology Fast 500 survey; our flagship products SYSTAT and SigmaPlot have received widespread commendations; but most importantly our software products continue to be endorsed by users globally, the key barometer of success in any business."
Cranes Software Group performance review:
- Operating revenues up by 43.7% to Rs. 1,633.8 million compared to Rs. 1,136.9 million.
- Operating profit higher by 54.7% at Rs. 804.7 million from Rs. 520.3 million.
- Net profit after tax increased 41.5% to Rs. 460.3 million from Rs. 325.3 million.
- Earnings per share at Rs. 45.27 for FY 2005 compared to Rs. 38.31 per share in the previous year.
- Board announces the issue of bonus shares in the ratio of one share for every share held
- Board recommends regular dividend of Rs. 2 per share and a one time special dividend of Rs. 3 per share.
- Stock to be split into 5 shares of Rs. 2 face value.
Key business / financial details:
- Revenue from proprietary software products higher by 45.8% during the year; contribution remains at 81% of overall revenues during FY 2005.
- Considerable growth in business in the U.S. and European regions following the launch of new versions of proprietary software products during the year.
- Significant expansion of R&D and IT Solutions teams in line with the corporate business strategies.
Key corporate highlights during FY 2005:
- Proprietary Products
Updated versions of Proprietary Software products were launched and marketed to specific user groups requiring solutions around specific domains.
- Acquisition of EMRC
Cranes Software announced acquisition of Engineering Mechanics Research Corporation (EMRC) in India with its customers, brand names, trademarks, ongoing contracts, personnel and fixed assets. EMRC is the developer of NISA suite of products and a pioneer in the field of Computer Aided Engineering(CAE). The Company provides consulting services and customised software in this domain. The consideration for this acquisition is part of a deal of US $ 1.5 million including the US arm of the EMRC operation, currently waiting some statutory clearances in US.
The acquisition will immediately give access to Cranes Software to diversify into an expanded market in the scientific and engineering software specifically in the Engineering Services domain. It provides comprehensive CAE-related capabilities through a high quality products suite, many years of product experience and extensive global usage backed by a worldwide sales and support organization.
The acquisition is in line with the Company's strategy of purchasing undervalued assets that provide substantial growth potential by leveraging existing strengths and capabilities. In addition to statistics and data visualization, the Company's portfolio now also addresses the mechanical, civil, automobile, aerospace and electrical engineering markets, thus extending the range of software that it takes to scientists and engineers globally.
- Board expansion
During the year, Dr. Manju Bansal and Dr. Peter Ryser were appointed on the Company's Board taking the overall Board strength to 10 and the number of Independent Directors to 7.
- Dr. Bansal is one of India's foremost computational biologists, currently a Director at the Institute of Bio-informatics and Applied Biotechnology, Bangalore, and a Professor in the Molecular Biophysics Unit at the Indian Institute of Science, Bangalore. Her 27 years of outstanding experience is already contributing significantly to the Sigma product development initiatives. The software has widespread usage and growth potential in the pharmaceutical and biotechnology industries.
- Dr. Peter Ryser, a Swiss citizen, is currently a Professor of Microtechnology at the Swiss Federal Institute of Technology in Lausanne. In his current assignment, since 1998, he has been involved in research activities in the areas of Microsystems packaging, thick film technology and conception of high volume micro-engineered products.
- Ongoing product version launches in India through alliances
Cranes Software's expertise and experience in addressing the specific requirements of scientists and engineers worldwide has enabled the Company forge product distribution alliances with several leading global companies. During the year, a range of new versions / enhancements were released, further expanding the range of the portfolio under software products alliances with dSPACE, a leading electro-mechanical development tools supplier; The MathWorks Inc., a leading technical computing software globally.
- Cranes Software achieves SEI CMM Level-5
Cranes Software was assessed at Level 5 of Software Engineering Institute's Capability Maturity Model in August 2004. The scope of the assessment covered software product development and services for the Company's scientific, engineering and enterprise applications.
- Customer acquisition
Cranes Software key clients who contributed to Cranes Software revenue growth this year are
In the corporate sector:
3M, Astra Zeneca, Ball Aerospace, Bayer Healthcare AG, Bridgestone Firestone Inc., Bristol - Myers Squibb, Canon, Daimler Chrysler AG, Eli Lily, Exxon Mobil, Ford Motor Co., Fuji, GE Capital, GE Electrical, GlaxoSmithKline, Hewlett Packard, Intel, Lockheed Martin, L'Oreal, Nikon, Novartis, Pfizer, Proctor & Gamble, Shell Oil Company, Siemens VDO, Toyota and Xerox Corporation.
Government / development agencies that used the Company's software products to further their research activities included:
NASA - Glenn Research Center, NASA - Johnson Space Center, U.S. Air Force, United States Environmental Protection Agency and World Health Organisation.
In addition, the following academic / research institutions were added to Cranes Software's client list:
Harvard University, Indian Institute of Management, Bangalore, John Hopkins University, Johnson & Johnson Pharmaceutical Research and Development and Max Planck Institute.
- Listing on the NSE
Cranes Software announced that its equity shares have been listed on the National Stock Exchange (NSE) with effect from October 27, 2004. The Company's shares are traded under the symbol CRANESSOFT on NSE. Its shares are currently listed at the Stock Exchange, Mumbai (BSE) and its GDRs are listed on the Luxembourg Stock Exchange.
- Redemption of outstanding preference shares
Earlier during FY 2005, Cranes Software redeemed 200,000 preference shares of Rs. 100 each, involving a cash outflow of Rs. 20 million. With this redemption of the outstanding preference shares, the paid-up share capital of the Company stands at Rs. 101.7 million comprising 10,166,797 equity shares of Rs. 10 each.
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