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Lectra Sees Strong FY 2016 Results as it Readies Itself for Industry 4.0

The next industrial era of automated factories and digital supply chains, also known as Industry 4.0, is upon us and Lectra is pioneering this high-tech shift with notable internal investments.

The technology solution provider’s fiscal 2016 results indicated strong growth in operational income and revenues. For fiscal 2016, Lectra’s revenues totaled $279.3 million, which was a 10 percent increase compared to 2015. New systems sales revenues increased by 14 percent ($121.4 million) and recurring revenues rose by seven percent ($157.8 million). Fiscal 2016 operational income increased by 18 percent and the operating margin was up one percentage point (14.3%) compared to 2015. Lectra’s 2016 net income also increased to $28.7 million, which was up $3.5 million from the year before.

Along with strong annual results, Lectra shared its new strategic roadmap for 2017 to 2019, a long-term vision to gear customers, including retailers, for production changes in the coming decade. One core strategic roadmap objective will drive customers into Industry 4.0. This essential objective is to progressively shift new software license revenues into recurring subscriptions with a new Software as Service (SaaS) service. The offer, which is reinforced by cloud integration and uses data analysis, will manage integration between equipment, software and services. Considering consumers are now at heart of retailers’ supply chains, the new Saas offer could help retailers make their production processes more personalized, since they could digitally connect all points of their supply chain together without hiccups.

“This presents an unprecedented opportunity for Lectra, calling for the integration of smart solutions and services, and the replacement of production plants incompatible with connected factory concepts,” Lectra CEO Daniel Harari said in Lectra’s annual report.

In its annual report, Lectra also said it will continue to actively invest in the development of its offers, including new technologies like the SaaS service. R&D expenditures are set to gradually increase, averaging around 10 percent of annual revenues from 2017 to 2019, as Industry 4.0 approaches.