In contrast to the string of ‘in line’ or below expectation trading updates, Delcam has continued to outperform. Following its record H1 (see Up, up, up for Delcam), the supplier of software product development, manufacture and metrology (CAD/CAM) says H2 and in particular Q4 have been strong. The result is that it is expecting PBT to be ahead of market expectations of £4.3m and sales to reach another new high for the company of £46m for the full year to December 31 (vs. £41.9m last year and £22.9m in H1). Its ability to move into new countries and verticals without damaging its core CAD/CAM business is certainly paying off.
It is not the only vendor with a CAD/CAM interest that is doing well. Engineering data and design IT system provider Aveva is following a strong H1 in which it saw revenue jump 15% to $97.6m (see Aveva still solid) with the acquisition for an undisclosed sum of US simulation software provider Global Majic Software. The simulation capabilities use 3D gaming technologies which literally brings a new dimension to the area and will wrap well with Aveva’s visualization offerings and drive Aveva further along its ‘digital plant’ strategy. Aveva has been in acquisition mode over the last few years (e.g. Bocad in 2012, assets from Z+F UK and the oil and gas business from ADB Systemer in 2011) as it builds out across the two divisions of its business. Like Delcam is has expanded into a new area (information management), without damaging it core.