Earnings Release • Nov 7, 2013
Earnings Release
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NedSense enterprises n.v. ("NedSense") revenue slightly decreased (-3%) in the first nine months of 2013 compared to the same period last year, partly due to a negative USD effect. While operating costs decreased by 5% the operating result, although negative, improved by 10% versus 2012. The third quarter showed stable revenues and lower operating costs compared to the same period in 2012. Typically, as a result of the purchasing cycles of our major clients, NedSense will generate a larger portion of annual sales in the fourth quarter as compared to other quarters of the year.
NedGraphics' revenues year to date were stable compared to the same period in 2012. Continuing cost control work has been effective and the operating costs of the NedGraphics division have decreased both year-on-year as well as on a quarterly basis when compared to 2012. NedGraphics continues to invest in new capabilities across its product portfolio that will enhance and preserve its leading position in the fashion and textile market. In the third quarter, NedGraphics closed a major deal with the largest retail business in the world.
The LOFT business continues to grow and shows a strong order pipeline. NedSense expects revenue growth for this division for the full year. Operating costs for LOFT have remained stable compared to 2012. With the signing of one of the largest residential real estate owners in the United States, Equity Residential, LOFT is adding a growing and lucrative channel for its visualization product, which should improve revenue growth forecasts in the near term. LOFT is now serving leading global brands across all 3 of its major market segments: Furniture (Crate & Barrel, Rubelli, Pode and Bert Plantagie), Real Estate (Equity Residential) and Flooring (Carpet court and BeWe). Growth acceleration is essential to maintain the current competitive advantage.
Over the last 4 years, NedSense has laid the foundation for its growth strategy. The issue of ordinary shares as approved by the shareholders on the Annual General Meeting of Shareholders of June 11th 2013, has improved the financial structure of the Company significantly. As part of the investigation announced in June 2012 into the strategic options of the Company, the Board of Directors held talks with several parties in the course of 2012 and 2013. These talks ultimately resulted in an investment in NedSense by a group of investors represented by Nantahala Capital Management in the United States. The contribution of business partners linked to this group of investors has already demonstrated its strategic importance for the NedSense LOFT division. NedSense will continue its strategic orientation with a particular focus on further partnerships for the LOFT division.
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NedSense is a global provider of high-quality software solutions and services for retailers, manufacturers and designers of the products, designs and brands which surround us in our day-to-day lives, from fashion items and accessories to furniture, carpets and other woven materials.
The NedSense portfolio ranges from market leading CAD CAM technology to the unique customer experience solution LOFT™. Our aim is to offer solutions that make sense and create tangible value to the commercial activities of existing and new customers.
Through its wholly owned subsidiary NedGraphics, NedSense serves more than 3,500 customers through a global network of over 30 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.
NedSense is listed on NYSE Euronext Amsterdam [NEDSE]. More information is available on www.nedsense.com and www.loft-nedsense.com.
Citigate First Financial Maarten Dijksma Telephone: +31(0) 20 575 4014
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