LAVAL, QUEBEC - 20-20 Technologies (TSX: TWT) revenues rose 5.2 percent third quarter. The maker of 3D interior design and furniture manufacturing software third quarter revenues reached $17.9 million, with licensing rising 19.9 percent; though net earnings were down 80 percent, at $200,000.
While income from Europe, Middle East and Africa rose 15.5 percent, North American revenues declined 3.4 percent, due to continued soft market conditions in the U.S. affecting professional services and the manufacturing sector, though they were up 11.8 percent compared to the previous quarter.
Growth outside North America was "fueled by a large contract with an existing customer," said CEO Jean-François Grou. "Our capacity to address the needs and complexity of large customer requirements remains a key competitive factor."
Sales of applications for manufacturing sectors, including cabinetry and furniture, performed well outside the Americas, where it declined. The office segment of 20-20 Technologies business has seen a boost from the introduction of Visual Impression last year, Grou said. Hon Furniture announced at NeoCon it would incorporate it in its office furnishings design offerings. In April 20-20 launched Version 10 for the furniture manufacturing segment.
"Our gross margin benefited from higher license sales; however it was temporarily impacted by the reorganization of our professional services organization and lower utilization rates, mainly in North America," Grou said.
20-20 revenues are reported in three segments: the Americas, 50.2 percent of the total; Europe, Middle East and Africa, 45.7 percent; and Asia Pacific 4.1 percent of total revenue.
20-20 manufacturing sector revenues, which accounted for 27.0 percent of total revenues, increased by 1.2% to $4.8 million. 20-20 Technologies announced in April it is seeking strategic alternatives, suggesting it is planning a sale or merger.
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