Earnings Release • Nov 10, 2010
Earnings Release
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NedSense enterprises n.v. ("NedSense") booked a strong improvement in results in the first nine months of this year compared with the same period of last year. The market conditions in the textile and fashion industry, NedSense's primary markets, continue to improve, in particular in the United States. This was one of the reasons for the further increase in turnover in the third quarter, after a rise of 17% was recorded in the first half of 2010.
Turnover at the divisions NedGraphics and DPI increased significantly, thanks in part to the company's successful 'Value Triangle' strategy. Both divisions recorded positive results over the first nine months of the year.
Entering into alliances with Adobe (NASDAQ: ADBE) and PTC (NASDAQ: PMTC) enabled NedSense to further develop the strategy to optimise its product and services portfolio in the third quarter. Since NedSense has become a recognised solution partner of Adobe in the textile and fashion industry, its customers can now benefit from the unique value of the combined product portfolios of both organisations. The partnership with PTC allows NedSense to offer existing and new clients Product Life Cycle Management solutions via its DPI division.
The LOFT customer experience engine offers clients the opportunity to present and visualise products and textiles in the personal environment of their own customers. This accelerates the go-to-market process by using the internet. After the end of the third quarter, on 25 October 2010, NedSense announced it had obtained its first LOFT order in the United States, after earlier successes in the European market. The exclusive interior design and furniture manufacturer Donghia Inc. will, as of January 2011, use LOFT as a marketing and sales tool in its showrooms. The Apple iPad will be used as device. NedSense officially launched LOFT in the United States on 4 November 2010 at a very successful event for clients, potential clients and media in New York.
In 2010, NedSense will complete the third stage of the Value Triangle, which will form a basis for further growth in the coming years. The successfully launched growth strategy, which entails NedSense focusing on winning market share, especially in the US, will be continued. The rollout of the most up-to-date software encryption technologies will in the future ensure a more effective protection of NedSense's entire software portfolio against illegal copying.
As indicated at the presentation of the first-half results, we expect NedSense to realise a break-even result at the end of 2010, excluding additional investments in the LOFT product suite. NedSense is on course to realise positive EBIT in 2011.
NedGraphics is a wholly owned subsidiary of NedSense enterprises n.v. Through its subsidiary, NedSense has built up an impressive track record of developing and producing software solutions for the fashion and textile industry over a period of 30 years.
NedSense serves more than 3.500 customers through a global network of over 42 resellers and agents. Its 14 offices are ideally located in the leading textile, fashion and production centers of the world. To enhance and preserve its dominant market position NedGraphics continues to invest in its highly qualified staff, market research, and product development.
The corporate philosophy and professional approach of NedGraphics ensures a close working relationship with the finest designers and manufacturers by offering them solutions which are of the highest level of functionality. It enables its clients to improve their sales through minimizing "time to market", optimizing product development flow and reducing sampling costs. Each software solution is offered in a fully integrated modular system to guarantee the current and future operational performance. NedSense is listed on NYSE Euronext Amsterdam [NEDSE]. More information on www.nedgraphics.com and www.nedsense.com.
For further information: Citigate First Financial Uneke Dekkers Phone: +31(0)20 – 575 40 10
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