Digital Cinema, Medical Imaging Drive 40 Percent 2010 Revenue Increase at Barco

Posted by Joe Zaller
Feb 11 2011

Barco announced that its revenue for the full year 2010 was €897m, an increase of 40.6% versus 2009.   The company said its results were driven by a strong performance from its digital cinema, medical imaging and avionics divisions, which saw revenue increases of 154.8%, 59.1% and 61.4% respectively.

Orders for the year were up 58.3% to €978.3m versus 2009, and the company’s order book at the end of 2010 was €426.9m, up 29% versus the end of 2009.

The company’s net income for 2010 was €43.6m, a significant improvement on 2009 when it lost €59.9m. 

On a geographic basis, the largest revenue contributor was the Europe, Middle East, Africa and Latin America (EMEALA) region, which accounted for 42.7% of sales. North America contributed 35.6% of revenue, while 21.7% of sales came from Asia Pacific. Compared to 2009 sales grew respectively by 28.9%, 66.4% and 30.7%. 

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On a segment basis:

  • The Media & Entertainment and Simulation (MES) business posted revenue of €471.7, an increase of 53% versus 2009. Digital cinema shipments were up 154.8% in 2010.

 

  • Monitoring & Control and Medical business group (MCM) sales increased 27.6% to €335m versus 2009, with medical and avionics showing particularly strong sales growth.

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Company president & CEO Eric van Zele said that thanks to the cost cutting measures the company took in 2009, it had managed to weather the economic crisis return to profitable growth.

As part of its plans to sustain its growth, the company also said that it will regroup and recombine some operating divisions in to capture additional scale economies and to align organizational structure with strategy.  “We are pleased with the progress so far and are taking the next steps to strengthen Barco’s leadership in the various segments of our business. We will do whatever it takes to realize further profitable growth in the years to come,” said van Zele.

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Outlook for 2011

Barco issued the following statement about the coming year:

2011 will see Barco deploy the third phase of a strategic plan developed beginning 2009. Within the framework of this plan the company will fully adjust structure to strategy in the coming months. Barco will further increase focus on its core activities while simultaneously creating the necessary framework for its other businesses to fully embrace entrepreneurship and become important drivers of growth. Barco will also seek to establish strong geographic leadership in growth markets such as the BRIC countries. Sales and order intake of the BRIC countries are headed for 20% of total sales in 2011. 

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You can read the full Barco FY 2010 earnings press release here.

Barco’s presentation to equity analysts is here.

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