India's Cranes Q1 Revenues Up 6% to $25M with $5.9M Profit

Company reports revenue of 1.2B Rupees ($25M) and 281M Rupee ($5.9M) Profit

Cranes Software Group’s financial performance review:

Corresponding Quarterly Comparison

Q1FY10 (April – June 2009) v/s Q1FY09 (April – June 2008)

• Total revenues were up 6% to Rs. 1,218 million from Rs. 1,154 million
  - Overseas revenues increased 14% to Rs. million and constitute 96% of total revenues
  - Domestic revenues at Rs. 50 million for the period under review
• Operating profit improved by 2% to Rs. 587 million from Rs. 574 million. Operating margins for the quarter at 48%
• Net profit after tax amounted to Rs. 281 million translating to diluted EPS of Rs. 2.05 for the period under review

Commenting on the financial results, Asif Khader, Managing Director, Cranes Software International Limited, said:

“Cranes has started the year on a positive note with revenues increasing 6% to Rs. 1,218 million. The thrust of our strategy that we have been aggressively implementing over the last four quarters is beginning to show results. The key focus of this strategy, includes streamlining our supply chain by consolidating operations across geographies and enhancement of operating efficiencies by devising strict measures to negotiate the recent rise in average collection period. This actions will help mitigate cash flow constrains faced during the quarter. Additionally, the Company is enhancing its interface with customers for direct sale of proprietary products particularly in locations where it has close proximity to direct offices. This has had a two fold effect in that it has further enabled us to reduce the sales cycle as well as led to better management of business. This is one of the reasons why the standalone revenues have declined significantly this quarter.

One of our longest alliance partners, The MathWorks, for which we distributed products such as MATLAB in India, has decided to set-up its direct office in India. Although this has also contributed towards a decline in standalone revenues, the Company has put in further emphasis on the proprietary product sales in India. The demand for our products has improved and the Company has put into place a strong platform that will enable it to leverage the opportunities of an improving environment. We feel this move has helped de-risk our business by reducing the dependency on distribution sales through alliance partnership. Having said that, we will continue to explore the environment to partner with Companies so that we could provide end-to-end solutions to our customers. We have partnered with several other principals such as Siemens, Maple Soft, Lyrtech, in our endeavor to do so.”

Acquisitions & Alliances during the quarter under review:

• Cranes Software’s subsidiary, Proland Software, a data security company, entered into a strategic partnership with VirusBuster, a Hungary-based security solutions provider. This alliance will enable Proland to provide a wider selection of data security solutions to its customers, and expand its presence from a predominantly home/single user base to the enterprise/office segments

• Cranes’ subsidiary, Systat Software entered into an agreement with Ohio based Rescentris, to globally offer their joint product, SigmaCERF - an Electronic Lab Notebook (ELN) and knowledge management platform for life science research organizations. While industry experts predict the market for ELN to be one of the fastest technology growth areas, this collaboration will also enable Cranes’ SigmaPlot, SigmaStat and Systat customers to source tools that cater to different aspects of their research process from one single reliable source

• Cranes entered into an alliance with Siemens PLM Software, a business unit of the Siemens Industry Automation Division and a leading global provider of product lifecycle management (PLM) software and services. This partnership will enable Cranes to distribute the full suite of PLM software solutions to its customer base in India, thereby strengthening its position further in the engineering simulations space

• Cranes has been a strategic partner to CNN-IBN in analyzing the findings of opinion and exit polls as well as analyzing results for elections held both at the State and the Center. In the recently held Lok Sabha elections, the Company used its in house statistical software product SYSTAT for analysis of early trends on the counting day. Dr. Rajeev Karandikar, a well regarded probabilist and statistician who is an Executive Vice President at Cranes with the analytics team collaborated with the CNN-IBN for this exercise.

New Product Launches during the quarter under review:

• Released ETA/DYNAFORM Version 5.7 – With over 90 new and enhanced features, the latest launch of its powerful die analysis solution, ETA/DYNAFORM Version 5.7 will further address some of the long standing requirements of the Manufacturing and Automobile sectors

• Released ETA/VPG Version 3.4 with NISA Solver – A finite element modeling software, ETA/VPG Version 3.4 has over 63 new or improved functions and offers an integrated linear static and Eigen value modules from the general purpose FEA software suite NISA, which allows users to easily create and visualize advanced simulations within the ETA/VPG environment

About Cranes Software International Limited

Cranes Software International Limited, through its software products and productized solutions addresses the needs of scientists, engineers, researchers, and decision makers in multinational companies, governments, defense establishments, academia and research institutions in the aerospace, automotive engineering, banking and financial services, bioinformatics, biology, biotech, chemistry, physics, communications, consumer research and marketing, criminological sciences, cryptography, defense, electronics engineering, empirical analysis, engineering, environmental sciences, genetics, geo sciences, life sciences, material characteristics, material sciences, medical research, oil exploration, pathology, psychological research, quality control, remote sensing, signal processing and telecommunications space. While Cranes Software’s core areas of operations are Enterprise Analytics, Engineering Design, Simulation and Testing, the company's business interests also include high-end training services and R & D in future technologies.

Cranes Software offers a range of proprietary products - SYSTAT, SigmaPlot, SigmaStat, SigmaScan, TableCurve 2D, TableCurve 3D, PeakFit, NISA, NISA/CIVIL, NISA DesignStudio, eta/VPG, eta/DYNAFORM, XID, XIP, Survey ASYST, iCap Reporter, iCap Webmaster, iCap Dashboarder, iCap Data Primer, InventX, Cubeware Cockpit, Cubeware Team Server, Cubeware Importer, Protector Plus, and world-renowned products from reputed principals such as Livermore Software Technology Corporation, The Mathworks, Texas Instruments, dSPACE, Mentor Graphics, IBM, Siemens, Genomatix Software Inc. and Breault Research. The company also has alliances with Microsoft, BusinessObjects, BEA, Borland, Net Solutions, Anantara, Wipro and Craft Silicon. Cranes Software has a presence in 39 countries (through its direct offices, subsidiaries, channel partners, franchise relationships and other alliances) and has global user base of over 350,000 users.

For more information, visit www.cranessoftware.com.

Certain statements in this release concerning our growth prospects are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including government actions; local political or economic developments; technological risks; risks inherent in the Company's growth strategy; dependence on certain clients; dependence on availability of technical consultants and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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See Also

Cranes website
FEA Products and Companies - list by TenLinks.com
General Purpose FEA - list by TenLinks.com

Additional News

Dec 14 - India's Cranes Subsidiary ETA Gets SAE Award for Detroit
Oct 27 - Cranes Launches SYSTAT 13 for Statistical Analysis
Sep 15 - India's Cranes Releases NISA v17 for FEA
Aug 10 - India's Cranes ETA Division to Sell Denton Virtual Dummies
Aug 3 - India's Cranes Q1 Revenues Up 6% to $25M with $5.9M Profit
Jul 1 - India's Cranes Q4 FY09 Revenue Up 50%, Profit Down 11%
Jun 16 - Cranes Releases eta/DYNAFORM v5.7 for Die Analysis
Apr 28 - Cranes to Sell Siemens PLM Products in India
Mar 16 - India's Cranes Moves Engineering to Main Campus
Mar 12 - India's Cranes Releases NISA v16.0 for Linux
Feb 18 - Cranes Software Releases NISA DesignStudio v16
Feb 3 - India's Cranes Q3 FY09 Revenue Up 6%, Profit Down 15%
Nov 19 - Cranes India LS-DYNA User Conference Registration Opens
Oct 31 - Cranes H1 FY09 Revenue Up 38% to Rs 2422M
Oct 13 - Cranes Releases NISA/CIVIL v16 for FEA
Oct 7 - India's Cranes Announces NISA v16 for FEA

Source: Material used in press releases is often supplied by external sources and used as is.