Descartes Systems Group has announced its financial results for its first 2013 fiscal quarter, ending April 30, with a record quarterly revenue of $29.9 million, a 10 percent increase over the same period fiscal year 2012.
The company said service revenues reached $27.7 million, a 7 percent increase from the year before, and comprised 93 percent of total revenues for the quarter. It did not release specific information on licensing-only related revenues.
The company’s net income was $2.6 million for the quarter, up 18 percent from the year before but below net income of the last two quarters of its fiscal year 2012.
For Descartes’ revenue this quarter, they break down geographically with 44 percent in the United States; 22 percent in Europe, the Middle East and Africa (excluding Belgium); 14 percent in Belgium; 12 percent in Canada; 6 percent in Asia Pacific; and 2 percent in the Americas (excluding the United States and Canada).
Descartes Chairman and Chief Executive Officer Art Mesher said plans for the company in the coming quarter and the rest of the fiscal year revolve around investment and partnerships. One of the areas Mesher spoke most about is the continuance of its acquisition strategy as key to the future of the company. In its first quarter fiscal year 2013, Mesher said Descartes spent $400,000 on activities related to acquisitions and companies they are pursuing will be those who offer services that existing customers demand or can see benefit from.
“We see a greater pipeline for acquisitions but the majority of new companies that come into the pipeline are garbage,” Mesher said. “We need quality companies with stable businesses to acquire. You need to do what you say you do, and we need to like what you do.”
Alongside its quarterly earnings, Descartes also announced it will provide services to Brink’s Inc., a global player in security-related services for banks, retailers, and a variety of other commercial and governmental customers. Brink’s will use Descartes’ integrated routing, mobile, and telematics suite to enhance its vehicle efficiency and provide real-time visibility.
Mesher called the Brink’s announcement a “landmark deal.”
The Brink’s service is a license transaction, but Descartes won’t say much about it because of security concerns. “In typical form we will recognize that license transaction over a rollout period,” Mesher said. “It will roll out over a two- to three-year period.” – Geoff Whiting
Descartes posts record quarterly revenues
