LECTRA

First nine months of 2020: revenues and earnings impacted by the COVID-19 crisis - Seite 3

Orders

Orders for perpetual software licenses, equipment and accompanying software, and non-recurring services (54.9 million euros) were down 30%.

In addition, the annual value of new software subscription orders amounted to 1.8 million euros, up 56% compared to the first nine months of 2019. These orders increased in all geographical regions, primarily in the fashion market.

Revenues

In this unique and unprecedented environment, total revenues (170.6 million euros) decreased by 16% compared to the first nine months of 2019 (-17% at actual exchange rates)

Revenues from perpetual software licenses, equipment and accompanying software, and non-recurring services (54.4 million euros) fell by 31%.

Revenues from recurring contracts (74.5 million euros), a key pillar of the Group's business model that constitutes a protective factor that will help mitigate the impact of the COVID-19 crisis on revenues and results, increased by 4%.

Revenues from consumables and parts (41.6 million euros) were affected by the acute reduction in business activity of the Group's customers due to the health crisis, especially during the lockdown periods, and decreased by 21%.

Income from operations and net income

Income from operations (15.6 million euros) declined by 45% (-47% at actual exchange rates).

The operating margin (9.1%) was down 5 percentage points (down 5.3 percentage points at actual exchange rates).

Net income (11 million euros) decreased by 48% at actual exchange rates.

Positive free cash flow – a particularly robust balance sheet

Free cash flow was 10 million euros (18.1 million euros for the first nine months of 2019). This decline is attributable mainly to the lower income.

At September 30, 2020, the balance sheet remained particularly robust with a consolidated shareholders’ equity of 183.5 million euros and, cash and cash equivalents, as well as a net cash position of 117.9 million euros.

Business trends and 2020 outlook

In its 2019 Financial Report, published February 11, 2020, Lectra had reported its long-term vision and its new strategic roadmap for the 2020-2022 period.

The Group already noted the uncertainties linked to the COVID-19 epidemic, whose impact was observed only in China at the time and decided that it would not formulate estimates for 2020 until such time as visibility improved. Since then, the epidemic has become a pandemic, leading to a major and rapid slowdown of the global economic activity.