Oct 26 - Geometric Q2 Revenue Down 16% to $27M

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Geometric Q2 Revenue Down 16% to $27M

MUMBAI, India, Oct 26, 2009 - Geometric Ltd. (BSE: 532312, NSE: GEOMETRIC) today announced its Q2 results for FY 2009-10.

Highlights for quarter ended September 30, 2009

PAT of Rs. 102.36 Mn an increase of 210% Y-o-Y and 22.6% Q-o-Q
Added 12 new customers this quarter
Improved EBITDA from Rs 186.60 Mn last quarter and Rs 169.47 Mn same quarter last year to Rs 197.13 Mn this quarter, an increase of 5.65% and 16.32% respectively

click to see full financial information (pdf)

A continued focus on improving operational efficiencies, especially through higher offshore leverage and better utilization, helped Geometric increase profits inspite of even revenues this quarter.

Geometric recorded operating revenues of Rs. 1281.93 Mn (USD 26.54 Mn) this quarter, as compared to Rs. 1293.23 Mn (USD 26.61 Mn) in Q1. The Profit after Tax (prior to extraordinary items) more than doubled this quarter to Rs. 100.29 Mn from Rs. 47.16 Mn in Q2 FY09; a q-o-q rise of 17.7% from Rs. 85.23 in Q1 FY 10.

Announcing the results, Mr. Ravishankar G., Managing Director & CEO said, “Geometric has been able to record an increase in profits despite a marginal decline in revenues from last quarter through its focus on delivering value to its customers and driving higher operational efficiencies. The marginal decline in our revenues can be attributed to ramp downs in some projects coupled with delays in closures of some contracts. While markets continue to be cautious in their spending, companies are looking at opportunities to drive cost efficiencies through outsourcing. ”

Business Highlights

The Company added 12 new customers during Q2. At the end of the quarter, Geometric had 101 active customers, who includes 17 million dollar plus customers. Some of the significant wins this quarter include:

A multi-year product development contract from a major industrial OEM
An engagement for PLM application development for a global Auto major
A PLM integration and customization engagement with an ISV to service an end customer in the medical devices vertical
A product design and engineering contract from an Industrial major
An engagement with an Industrial OEM for PLM support
An interoperability solution contract for a large automotive OEM
A DFMPro customization order from a leading Japanese hardware company

Other important business highlights for the quarter include:

Opening of a new delivery center in Hyderabad, increasing Geometric’s footprint in India to a fifth location. This takes the tally of Geometric’s global delivery centers to 11.
Launch of 3DPaintBrush version 2.0 with a number of new features including support for Google SketchUp 7.0
Release of NestLib 2009 R2 with new features for the wood working industry

For more financial information, click here (pdf).

About Geometric

Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.

Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the Bombay and National Stock Exchanges. The company recorded consolidated revenues of Rupees 5.98 billion (US Dollars 129.5 million) for the year ended March 2009. It employs close to 3000 people across 10 global delivery locations in the US, France, Romania, India, and China. Geometric is assessed at SEI CMMI Level 5 for its software services and ISO 9001:2000 certified for engineering operations.

For more information, visit www.geometricglobal.com or call +1.480.367.0132.

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See Also

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