Today Océ N.V. published the results for the third quarter of 2010. To download the full report, please follow the below link:
Today Océ N.V. published the results for the third quarter of 2010. To download the full report, please follow the below link:
Screen (USA), a leading supplier of digital printing systems and prepress equipment, today announced a strategic partnership with Online Print Solutions, an innovator in the engineering of web-to-print software. Under the agreement, Screen will deliver Online Print Solutions' industry-leading products designed to facilitate web-enabled print ordering, dynamic publishing and cross-media marketing.
The Online Print Solutions portfolio enables print providers to profit from all three areas of client interaction: corporate, marketing and retail. Screen will act as customers' single point of contact, supporting individual products or fully integrated solutions with sales and service. Existing and prospective users of Screen digital prepress, printing and workflow systems will be able to deploy the software needed for customised branded storefronts, job submission, online design, variable data printing and multi-touch personalised URL (PURL) campaigns.
"Through its comprehensive solution set, Online Print Solutions helps organisations generate new revenue streams," said Sean Dawson, workflow product manager of Screen (USA). "The addition of the Online Print Solutions product suite is part of our commitment to continuously provide customers with the broadest range of high-quality technology that complements our own products. Printing companies can harness this platform to improve the customer experience and expand their business opportunities."
"Expanding our sales network to include Screen affords users more choice and flexibility," said Mark McGowan, CEO of Online Print Solutions. "New customers can add value to Screen's total print package with the web-to-print platform, while existing Screen customers can integrate every conceivable client interaction into their workflows."
Established in 2002, Online Print Solutions already has amassed an impressive customer base consisting of more than 250 commercial printers, in-plant operations and direct mail companies. The number of corporate end users of the San Francisco-based company's products currently exceeds 18,000 worldwide.
The developer's core product, OrderDesk, is a catalog-style, online corporate storefront that streamlines the fulfillment of on-demand printing. Printers' corporate clients can easily select template items from a predefined list, such as stationery, brochures and newsletters. OrderDesk also empowers print buyers to order direct mail components, marketing collateral and other more complex printed materials. In addition, buyers can view pricing, determine the quantity and pay with a credit card.
Various optional tools enhance the functionality of OrderDesk, including Nexjob, a job submission and quoting tool aimed at non-template items. Nexjob converts end users' artwork files into PDFs for proofing, approval and price quoting.
GroupCanvas, Online Print Solutions' group collaboration publishing platform, allows users to edit text, images and page layouts to produce any type of variable document. Advanced features enable multiple users in remote locations to collaborate on print and HTML page designs in real time.
The VWeb and Vprint products provide the tools necessary to create, manage and track variable data and cross-media campaigns with the elements of print, email and PURLs.
To maximise the potential of the systems they represent, Screen's sales and support staff will undergo thorough training on the Online Print Solutions product suite. The company expects North American sales to begin at the end of March. Future plans call for a global reach to the Screen-Online Print Solutions partnership, with sales in Latin America and South America supported by software modules available in Spanish and Portuguese.
Highlights third quarter:
- Total revenues € 669 million (2009: € 631 million)
- Non-recurring revenues grew 5% organically; recurring revenues dropped 2% organically
- Normalised operating income € 16 million (2009: € 5 million)
- Net income € 6 million (2009: € -25 million)
- Successful steps in cooperation with Canon
Comments by Rokus van Iperen, Chairman of the Board of Executive Directors:
"Customers continued to be cost conscious amidst ongoing economic uncertainty. Nevertheless certain markets showed clear signs of recovery.
Our revenues grew by 6% to € 669 million, although organically revenue remained stable. Nonrecurring revenue grew, for the first time in ten quarters, by 5%. This growth came primarily from Europe and emerging markets. Recently introduced, innovative printers, like the Océ JetStream 1000, the Océ Arizona 550 GT and the Océ PlotWave 300, contributed substantially to the improved printer sales. Recurring revenues declined by 2%.
We increased our EBIT due to better utilization of the factories as well as the positive impact of our action program 2008-2010. We have returned to net profit, although realizing the level is still modest.
In the third quarter good progress was made regarding cross selling of Canon products via Océ, as well as preparing integration in various regions and functions. These developments are set to continue."
Group results third quarter 2010
Following the completion of the Canon offer, Océ anticipated substantial one-off items. This paragraph provides an overview excluding these one-off items. The largest part of these one-off items has been included in the second quarter 2010 earnings release.
Total revenues in the quarter increased 6% to € 669 million, due to foreign exchange effects. Organic growth was 0%.
Our share of colour grew to 36% of revenues, up from 30% in the same period last year.
Non-recurring revenues increased 12% to € 193 million. The organic increase was 5%. This was the first quarterly growth for 10 quarters. The growth came mainly from Europe and emerging markets.
Recurring revenues increased 4% to € 476 million. The organic decline was 2%, in line with the second quarter.
Our action program is almost fully implemented. The increase of the operating income was partly the result of the cost savings program. In the third quarter, Océ reduced costs by € 7 million, exclusive of inflation and restructuring cost. Year to date, Océ also reduced headcount by 890 FTEs compared to fourth quarter of 2009 (460 FTE's up to the second quarter).
Gross margin and operating income
In the third quarter of 2010, normalised gross margin was 38.1% (2009: 36.6%). The increase was the result of several factors. Compared to the third quarter of 2009 the changes in currency exchange rates caused a negative hedge variance of € –0.4 million, leading to a gross margin decrease of 0.1% point. The gross margin increase for DDS and WFPS in total amounted to 1.1% points, mainly due to better utilisation of the factories in Venlo and Poing and the aforementioned action program.
OBS gross margin increased by 0.3%, mainly due to changes in the business mix. The remaining 0.2% improvement was the result of a group mix effect.
Normalised operating expenses amounted to 35.7% of revenues (2009: 35.9%), due to the impact of the action program.
Net R&D capitalisation amounted to € 5 million, which is € 9 million lower compared to the third quarter of 2009 (€ 14 million).
On balance, normalised operating income amounted to € 16 million (2009: € 5 million). Operating income amounted to € 13 million (2009: € –25 million).
Finance expenses and net income
Finance expenses (net) amounted to € –5 million (2009: € –14 million). As a result of the refinancing of Océ's debt by Canon, the finance expenses decreased compared to last year. On balance, net income was € 6 million (2009: € –25 million). Earnings per ordinary share for net income attributable to shareholders was € 0.05 (2009: € –0.31).
Balance sheet and RoCE
The balance sheet total was € 2,332 million (2009: € 2,397 million). Net Capital Employed was € 1,179 million (2009: € 1,171 million). In relation to normalised operating income, RoCE amounted to 4.1 % (2009: 2.9%). The aforementioned balance sheet and Net Capital Employed amounts include the Canon related one-off items.
Free cash flow
Free cash flow in the quarter decreased to € –9 million (2009: € 19 million), due to lower free cash flow from temporarily higher inventories and trade and other receivables, partly compensated by higher free cash flow from creditors.
As already announced in the first quarter earnings release, Océ anticipated substantial one-off items as a consequence of the change of control following completion of the Canon offer on March 9, 2010. In the second quarter of 2010, Océ reported € 103 million one-off items due to the Canon transaction. Therefore, the nine months net income including these one-off items is € –95 million. In the third quarter, Océ incurred a € 3 million one-off item, impacting operating expenses.
Update cooperation with Canon
The priorities for 2010 regarding the combination Canon and Océ encompass capturing cross-selling opportunities, co-operation in technology and product development and preparing the integration. In the third quarter, Océ continued to prepare the introduction of Canon hardware and software products. Océ is training sales and service forces on Canon products and is preparing marketing plans and distribution.
In the small format business, implementation started during the quarter. Amongst others, Océ now sells Canon imagePRESS C 7000, Canon imageRUNNER ADVANCE 8000 and Canon imagePROGRAF printers as well as Canon printers connected to Océ PRISMA software.
In the meantime, Océ customers in the US and Europe started buying Canon office and production printers through the Océ sales channel, at the same time ensuring support of the Océ service technicians for maintenance of Canon's equipment.
For the wide format business, a joint project has started to determine the cross sales opportunities in which both Canon and Océ can deliver a stronger product portfolio to their customers. Canon will also sell selected Océ high volume products in certain of their markets and channels.
In the fourth quarter, Océ is participating in Canon Expo; a global technology event, being held in New York, Paris, Tokyo and Shanghai (spring 2011), highlighting major innovations in printing and document management, amongst others.
SBU results third quarter
This paragraph provides an overview of developments in the Strategic Business Units, excluding Canon related one-offs, described in the previous paragraph.
Digital Document Systems (DDS)
Revenues in DDS amounted to € 375 million. Organically, revenues remained stable. The share of colour increased to 30% of revenues (2009: 24%) driven by Océ's production colour continuous feed systems.
Based on recently issued 2009 product placement data by industry analyst firm InfoTrends, Océ continues to lead the continuous feed market in the US and Western Europe with a 26% share, including inkjet and toner-based technologies. During 2010, Océ received a significant number of orders in this segment, also for its new Océ JetStream 1000 printing system.
The Océ JetStream 1000 is perfectly suited for transaction, direct mail, TransPromo, digital book and manual printing and produces 1010 A4 duplex pages per minute.
In the office segment, Océ and Canon have jointly designed a go to market strategy. In the US, Océ has started selling Canon office printers. Prior to year end, Océ will offer Canon office printers to all its customers worldwide.
Non-recurring revenues amounted to € 126 million. Organically, revenues increased by 2%.
Recurring revenues amounted to € 249 million. Organically, revenues declined by 2%. This was due to lower print volumes and subsequently lower revenues in office and black & white continuous feed. DDS grew its revenues in production cutsheet and continuous feed colour.
Normalised operating income improved to € 3 million (2009: € –3 million), due to cost savings and better utilisation in the Venlo and Poing factories.
Wide Format Printing Systems (WFPS)
Compared to the third quarter of 2009 the WFPS revenues recovered, mainly driven by revenue development of Technical Document Systems in the US and Asia. Non-recurring revenues recovered while recurring revenues were lagging behind due to volume and price decline.
Revenues in WFPS amounted to € 180 million. Organically, revenues were in line with the prior year. The share of colour increased to 50% (2009: 45%), mainly as a result of the newly-introduced Océ ColorWave 300 and Océ CS2400 colour systems for the technical documentation market.
To further strengthen its colour portfolio for the wide format graphics market, Océ started selling its highspeed Océ Arizona 550 XT flatbed printer which has double the speed of the Océ Arizona 350 XT system.
Non-recurring revenues amounted to € 67 million. Organically, revenues increased by 12%. Growth occurred in almost all markets, with highest growth in Asia.
Recurring revenues amounted to € 113 million. Organically, recurring revenues declined by 3%.
Normalised operating income was € 9 million (2009: € 6 million) thanks to cost savings and better utilisation of the Venlo factory.
Océ Business Services (OBS)
Revenues in OBS amounted to € 114 million. Organically, revenues decreased by 2%. Revenue growth in Europe continued. The US is facing a decline in the traditional mail business, which was partly compensated through growth in other services.
Normalised operating income improved to € 4 million (2009: € 2 million), due to improved gross margins and tight operational expense management.
Customers will remain cost conscious amidst ongoing economic uncertainty. Nevertheless, they are expected to invest in systems and services that directly add value to their business. Therefore Océ will continue to introduce innovations for all its market segments.
Canon and Océ will continue to work towards creating the best combination in the printing industry. The priorities for 2010 remain unchanged and encompass capturing cross-selling opportunities, cooperation in technology and product development and preparing integration.
Océ's fourth quarter 2010 will consist of four months as Océ will align financial reporting with Canon's, consequently starting its new fiscal year at January 1, 2011. Results on fourth quarter and full year 2010 will be disclosed by the end of January 2011.
City and West End Solutions (CWES), a reseller of large format digital printers, has acquired fellow-reseller DCP Systems. Sheffield-based DCP Systems will become a division of CWES and has been renamed DCP Solutions.
CWES positions itself as HP’s main European partner and caters for a whole host of large format digital printing technologies including inkjet, solvent, UV-curable and the latest latex designs. As well as printers, the organisation supplies the associated software, consumables and support.
Roland University has been renamed Roland Academy, a move that reinforces Roland DGA's strong affiliation with other Roland training and education centres worldwide.
"More than ten years ago, Roland DGA pioneered the concept of offering advanced end user and dealer training to businesses throughout the Americas," said Rick Scrimger, vice president and general manager for Roland DGA Corp. "Following our success, the concept quickly took off internationally and now Roland training programmes are available to customers around the world. We are proud to unite our global training efforts under the Roland Academy name and look forward to new opportunities to help our customers achieve their business goals."
Offered in Irvine, Calif., online, and in various cities across the nation, the U.S.-based Roland Academy provides a variety of workshops, webinars and videos featuring instruction by industry experts on Roland equipment, software and supplies. The curriculum teaches workflows and applications to help professionals increase their profits and explore new business opportunities. September workshops include Digital Printing Boot Camp in Irvine this week (Sept. 14th – 16th), the Born to Wrap vehicle graphics workshop in Irvine Sept. 21st – 22nd and a Colour Management and Productivity workshop Sept. 23rd in Damascus, Ore.
Digital Printing Boot Camp
For more than 15 years, instructor David Goetter has trained businesses on the fundamentals of large-format digital printing – from production and finishing techniques to sales, pricing and service strategies. Now professionals can leverage his experience in this three-day, hands-on Roland Academy workshop.
Born to Wrap Workshop
Vehicle graphics and wraps are more popular than ever and can be a great source of new revenues for businesses. Taught by the experts at Digital EFX Wraps, this two-day workshop teaches everything professionals need to know to get started.
Colour Management and Productivity Workshop
The Colour Management and Productivity Workshop is designed for VersaCAMM and SOLJET owners to help them get the most from their Roland inkjets. This one-day class covers maintenance, colour management, media selection and new business opportunities.