December 1st - 2004
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Mandriva |
2003/2004: Back to Profitability |
Gross Margin 84.6%, up 49%, |
Operating Income 16.6% of Sales Revenue |
(M€) |
2002/2003 |
2003/2004 |
Variation |
|||
---|---|---|---|---|---|---|
M€ |
%R |
M€ |
%R |
% |
M€ |
|
Sales Revenue |
3.90 |
5.18 |
+33% |
+1.28 |
||
Operating revenue |
3.99 |
6.29 |
+58% |
+2.30 |
||
Gross margin |
2.94 |
75.4% |
4.38 |
84.6% |
+49% |
+1.44 |
Operating income |
-2.17 |
n.m. |
0.86 |
16.6% |
n.m. |
+2.85 |
Net income |
-1.99 |
n.m. |
1.39 |
26.8% |
n.m. |
+3.38 |
Fiscal year ends 30 September.
Strong Growth of Sales and Operating Revenues
In fiscal year 2003/2004, Mandriva's consolidated sales revenue reached 5.18 million euros and operating revenue reached 6.29 million euros. This represents strong growth of 33% and 58%, respectively, compared to FY 2002/2003. The additional growth in operating revenue, beyond the portion attributable to the growth in sales revenue, is due to R&D grants received, amounting to 0.67 million euros, and to a reversal of provisions for doubtful accounts, amounting to 0.27 million euros. Please note that the above 0.27 million euros reversal is offset by an operating expense of the same amount that is included in operating and net income. As a result, the reversal has no effect on operating or net income.
Improved Gross Margin
The gross margin grew 49% to 4.38 million euros, increasing as a proportion of sales revenue, to 85% from 75% in the preceding fiscal year. This improvement is due to the development of high-margin lines of revenues (online sales, licensing, and Mandriva Linux Users Club subscriptions). Those lines now amount to 77% of revenues
A Return to Profitability
During this fiscal year, the company produced a positive operating income of €0.86 million (€0.18 per share), compared to operating losses of 2.17 million euros for FY 2002/2003 (0.59 euros per share). Net income rose to 1.39 million euros (0.29 euro per share), from a net loss of 1.99 million euros in the prior year.
The net income includes an exceptional income item of 0.67 million euros, due to undeclared claims dating back to the Chapter 11 like recovery period. Because Mandriva has accumulated tax losses amounting to 23 million euros, this year's income is not subject to income tax.
Perspectives: A Profitable Growth Path
The company has successfully refocused on its core business, and now benefits from a healthier financial structure. It now has the financial assets needed to accelerate development.
Mandriva's strategic plan will continue to focus on growth, especially in professional products and services, while maintaining profitability. The company had as of late September 2.6 million euros in net cash, which provides a strong base for future growth.
Mandriva acquired services company Edge-IT on 4 October 2004 through an exchange of shares. The new subsidiary will not be incorporated into the group's total revenues until FY 2004/2005.
About Mandriva
Mandriva is a leading Linux and Open Source Software (OSS) editor. (OSS source code is freely accessible according to the GPL, the General Public License). Mandrivasoft develops and distributes the Mandriva Linux operating system. Hundreds of developers around the world contribute to the continuous improvement of the product via Internet and contribute to its internationalization (with more than 67 languages available). The company also provides related on-line and off-line services including consulting, education, support, and the Mandriva Club.
Mandriva has offices in France, USA and Canada. Since July 30th , 2001, the company is listed on Euronext Marché Libre and OTC US
Euronext: ISIN: FR0004159382
Mnemo: MLMAN
Reuters: MAKE.PA
Bloomberg: MLMAN FP
Pink Sheets: MDKFF
Number of shares : 4 769 556
Contact Mandriva
Jacques Le Marois/ Thierry Bossut
investors @ mandrakesoft . com
For additional information: mandriva.com/company/investors/newsletter
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