British CADCAM software developer Delcam has announced record six month sales and increased profits during the first half of 2010.
Sales at the company, which develops design software for machine tool operators to facilitate manufacturing, increased by 12% over the same period last year to £18.1 million. Pre-tax profits were substantially higher at £1.1 million, an increase of about £790,000 on the first half of last year.
Other highlights in the first six months of 2010 included the presentation of the company’s third Queen’s Award for Enterprise in the Innovation category for the development of design and manufacturing software for dental restorations.
US analyst firm CIMdata confirmed in its latest report that Delcam remains the world’s leading specialist supplier of CAM software, with the largest development team in the industry. The Birmingham-based company continues to increase its investment in research and development, which grew to £5m in the first half of the year from £4.7m during the same period last year.
Software licence sales have grown across all of Delcam’s big markets, including North America and Europe, which continue to be its largest markets. The biggest increases were in Asia and South America, where licence sales rose by 48% and 50% respectively.
Maintenance revenues, derived from software maintenance and support contracts, contributed £6.3m to the total, up from £5.8m in the first half of 2010. Delcam says this reflects positive responses from customers to the latest versions of its software. Maintenance revenues now account for approximately 35% of overall sales.
Delcam chairman Peter Miles said: “These encouraging results reflect recovery across all our major territories globally and were supported by our decision to maintain investment in product development and marketing during the downturn in order to gain commercial advantage”
“At this early stage in the second half, we remain optimistic that the improving trend will continue and, if this remains the case, we would expect trading results for the year to 31 December 2010 to show a significant improvement on results for 2009.”
Photo shows Delcam’s development and support staff at the presentation of the Queen’s Award