Tecnomatix sees '05 revenue growth topping '04
Mar 29, 2004
Israeli software company Tecnomatix Technologies Ltd. (NasdaqNM:TCNO) said on Thursday sales will rise by 15 percent to 20 percent in 2005 on top of the 15 percent growth projected for 2004, helped by higher demand from manufacturers and cost-cutting efforts. Tecnomatix, a leading provider of robotic simulation and engineering software, has weathered a three-year slump by reducing 25 percent its work force. Demand started to pick up in the December quarter, as it signed a $50 million contract with a major U.S. automotive maker. Chairman Harel Beit-On told analysts in a meeting it is "safe and reasonable" to expect 15 percent to 20 percent revenue growth in 2005 and a profit margin in the double digits. He also said net income will increase from quarter to quarter this year. In 2003, the Jerusalem-based company posted revenue of $86.3 million and a loss of $10.3 million. The bulk of Tecnomatix's revenue comes from Europe and North America. It is expanding rapidly in China, where it faces the double-edged sword of surging demand and rampant piracy. The stock rose 42 cents, or 3.4 percent, to $12.90 on Nasdaq shortly before midday
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