LEVALLOIS, France, Sept. 14, 2001 (PRIMEZONE) -- Turnover for the BVRP Software group (PSE:BVRP) stood at Eur 35.7 million (FRF 234.1 million) for the 12 months ending July 31, 2001, an 8.7% growth compared to previous year. Excluding the effects of the removal of Lab Production from the scope and the integration of AB Soft as of June 1, 2001, turnover rose by 15.9% over the financial period.
From 01/08/00 2000/2001 1999/2000 Change to 31/07/01 In MF In MEur In MF In MEur Software 121.9 18.6 96.2 14.7 + 26.7% Services 104.9 16.0 94.8 14.4 + 10.7% Multimedia -- -- 24.3 3.7 NS Other 7.3 1.1 0.1 -- NS TOTAL 234.1 35.7 215.4 32.8 + 8.7%
The effects of the economic slowdown felt by the sector as a whole, and which, partially affected BVRP during the third quarter, worsened during the fourth quarter mainly for the Software activity, in Europe and to a lesser degree in the United States. OEM sales were particularly hit by the drop in business affecting modem and computer manufacturers. On the other hand, e-commerce sales continue growing.
The integration of AB Soft is going according to plan enabling forecasts of significant growth in software sales in the next quarters via the traditional distribution channels.
The Services business also experienced a downturn during the fourth quarter due to the reduction in the activity of some historical customers. This was only partly compensated for by the increased business from several new customers and the ongoing strong growth of TechCity. Growth in business stands at 10.7% for the year as a whole.
Growth strategy to continue
In order to optimize the strong growth potential of the new range of software products, BVRP is continuing its acquisition policy and seeking to reinforce its distribution networks mainly in England. The takeover of another software republisher, in addition to AB Soft should be finalized before the end of September.
In terms of Services, BVRP is planning on continuing its growth policy by means of increased internationalization of its activities and by seeking partnerships in countries, where the group operates. Current market demand for expert technical support clearly justifies the concept adopted by the BVRP services business. Major contracts are currently being negotiated in the United States.
At the same time, the Group's management team is currently implementing actions to reduce costs in all business areas in a bid to see high margins as soon as 2002, even if the economic environment is unfavorable.
Annual results and forecasts for 2002 will be published on Oct. 24, 2001.