“Creo delivered sequential and year-over-year improvements in total revenue, gross margins and profitability. Revenues in Europe continue to track well above last year’s level, benefiting from both improved sales execution and the increased strength of the Euro,” says Amos Michelson, Creo CEO.
“Our Asia-Pacific region also continues to perform well, especially in China. Although revenue in the Americas remained flat year-over-year, we saw strong results in both newspapers and packaging, which are targeted growth segments for Creo. Over the next few quarters, Creo will continue to broaden its partnerships and the scope of the solutions we offer to the market. We anticipate a very exciting year ahead, with significant product announcements beginning with the IGAS and Graph Expo tradeshows in late September and continuing through the drupa exhibition in May 2004.”
Other highlights for the fiscal quarter included gross margins of 45.2 per cent, up 70 basis points from the 2002 third quarter and up 20 basis points from the prior quarter. Net operating expenses were US$62.9 million, compared to US$59.2 million in the 2002 third quarter and US$62.4 million in the prior quarter. A reconciliation of net operating expenses to GAAP operating expenses is provided on page 6 of this news release.
Looking ahead, Mark Dance, Creo CFO and COO expects revenue in the fourth quarter “to continue to trend upwards based on the seasonal strength of our OEM business and new product offerings. We will continue to manage prudently in order to capture new savings and improve our business fundamentals while not sacrificing our growth.”
For the fiscal fourth quarter ending September 30, 2003, Creo expects revenue between US$144 million and US$149 million. The company is forecasting adjusted earnings per diluted share between four and nine US cents and GAAP earnings per diluted share between three and eight US cents.
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