Delcam Share Discussion Threads

[hydrus] 17/7/2013 09:55

In order to continue to grow profits in the way Delcam have to date one would suspect they will need to focus on growing revenue at a faster rate. I notice that eprofits have increased much more than revenue recently. Does anybody have a view on how successful they are likely to be at growing the top line?

[m.t.glass] 10/7/2013 07:11

10 July 2013

DELCAM PLC

("Delcam" or "the Company")

CIMdata, Inc report names Delcam as

3(rd) largest CAM software vendor globally

and

the leading specialist CAM software vendor globally

Delcam, the developer and supplier of software solutions for product development and manufacture, is pleased to announce that the annually published industry report on the global CAM marketplace, produced by independent global consultants CIMdata, Inc, has ranked the Company as the third largest CAM software vendor globally in 2012, making this the fifth consecutive year in which Delcam has held this position.

The report also confirmed Delcam as the leading CAM specialist globally (i.e. its primary business is focused on the provision of CAM software and services), based on Delcam achieving the highest vendor revenues and the highest end-user payments of all CAM-centric companies. The Company has now held this leading position for 13 consecutive years.

According to CIMdata's analysis, Delcam's share of the CAM marketplace in 2012 increased to 7.3% from 7% in 2011, positioning Delcam behind the 'Big Two' market leaders, whose combined market share totalled 32.3% (18.9% and 13.4% respectively). CIMdata expects Delcam to increase its market share in 2013, stating that of the top ten providers, it expects only three (including Delcam) to increase market share.

CIMdata, which tracks approximately 60 CAM software vendors for its annual reports, estimated that the total value of CAM software and services purchased by end-users grew by 5.9% in 2012 to approx. $1.56 billion, a new high for the industry and it forecasts that end-user spend will increase by 7.9% in 2013 to approx. $1.68 billion.

Delcam's Chief Executive, Clive Martell, commented,

"It is good to see CIMdata, Inc's latest industry report confirm Delcam as the third largest CAM software vendor globally in 2012, a position Delcam has held for the last five years now. The report also confirms Delcam as the leading CAM software specialist globally, for the 13(th) year running.

I believe that our strong focus on R&D and on creating the most effective solutions for the specific sectors we target is a major strength and will continue to underpin Delcam's ongoing development."

Enquiries:

Website: www.delcam.com

[dlku] 12/4/2013 19:01

Employees exercise and sell shares today

[cockneyrebel] 26/3/2013 07:21

Fabulous earnings growth and a strong start to 2013.

The forecasts here are very conservative imo - as they always seem to eventually prove to be.

64p+ eps forecast for this year but 75p looks more likely imo.

Quality high growth act imo.

CR

[cockneyrebel] 21/3/2013 11:31

I think they have scope to surprise still hybrasil - and at worst a lot of investors see the results and realise these are a 3D Printer play - the techy thing to be in at the moment imo.

Tues will be interesting anyway :-)

CR

[hybrasil] 21/3/2013 08:42

Results due on the 26th. The IMS probably said enough so unlikely to see strong movement.

[staverly] 04/3/2013 16:57

varies: You are welcome.

Bandwagons, personal liquidity and tax issues aside, DLC is a stock that deserves to be held for the foreseeable future, not least as to get back in has historically involved absorbing such a huge spread.

Even for the pros it is often difficult to articulate with conviction beyond simplistic quantitative reasons why a stock is under/overvalued. No wonder so many PI's emotions exert such control.

[varies] 04/3/2013 16:27

Staverly
Thank you for referring me back to my own recent offering (Jan 29)
I am sorry for being repetitive and will try to restrain myself from making similar observations until the price goes up another 15% !
Much as I hate CGT, it does sometimes inhibit one from selling a share too soon and I am thankful that I have retained more shares in DLC than I would have done otherwise.

[staverly] 04/3/2013 15:50

varies: May I refer you to your recent post 1004 of 1024.

[cockneyrebel] 04/3/2013 15:37

Still looks good value to me.

EPS forecast has risen 10p on this year and 10p on next year over the past 3 months so brokers well behind the curve. fwd PE 20 but I suspect there's some earning beats coming if brokers have upped forecasts that much.

For a co that has grown earnings around 200% in 5 years and in the 3D priner space (one of the hottest tech sectors at the moment) that's good value imo, and a PEG well under 1.

All imo/dyor etc.

CR

[varies] 04/3/2013 15:29

The price looks crazy to me. I thought I was doing well to sell 1/3rd of my holding at about 1218p. Luckily or not, CGT deterred me from selling more.
Has the PER for 2012 reached 50 yet?
One can, of course, justify any price as long as it keeps rising !

[staverly] 04/3/2013 15:23

Unquestionably RSW is DLC's best proxy for LSE read ax valuation. Whilst i realize relative valuations should be treated with care, but even with Delcam's impressive share price rise today (+110p) RSW is still EV valued ~ x13 higher vs DLC. IMO this comparison materially undervalues DLC (and FWIW i consider RSW underpriced!).
A more reasonable basis of x10 EV in RSW favour would give DLC a share price of >£17; just a thought. DYOR

[quantumx] 04/3/2013 14:43

Roll on £16.30 ... sooner rather than later by the look of things! Happy to hold.

[cockneyrebel] 04/3/2013 14:31

Can't remember holding these when they riose £1 a share in a day - nice :-)

CR

[sleepy] 01/3/2013 15:48

Staverly
Thank you

[cockneyrebel] 01/3/2013 14:09

kicked off ahead of the results again :-)

Noice note from Numis :-) Ta.

CR

[apad] 01/3/2013 11:17

S,
I think so too.
I expect a high PER to be balanced by a lower Price to Cash Flow (e.g. OXIG 35/21, CML 20/10), so I can now take these provisions out and see if the numbers make some sort of sense.
Might even come up with a valuation, you never know ;-)
apad

[staverly] 01/3/2013 11:08

Apad: You are correct; £5m in 2011 and a further £4m was injected during Dec '12. Their early adoption of IAS19 will mean FY11 net income needs to be restated (~600k lower) as will quite a few other listed entities with legacy defined benefit plans. But unlike DLC, who have now fully funded their shortfall, some will be very exposed with materially suppressed future earnings (and vicious restatements) but more importantly many of them will require serious cash injections.
Given that average age of Delcam scheme participants is around 45 (reasonably assume disproportionate equity weighting) might suggest that situation might even play out positively in FY13 onwards albeit on a non-cash basis.

[apad] 01/3/2013 10:40

I think I have answered my own question. Massive payments for pension liabilities in 2011.
apad

[staverly] 01/3/2013 10:26

Sleepy, valuation based on obscure 20x CY14 EV:NOPAT. NOPAT as you may know can have upto 150 inputs thereby without a formal training or easy access to Bloomberg's Financial Analysis rather meaningless. Over the years I have spent many hours trying to unravel NOPAT calculations - its pull your hair out country! Having said that, Numis valuation only assumes top line growth of ~6%, so conservative.

[apad] 01/3/2013 10:24

I have known DELCAM as a company for many years but am only now looking at it from an investment point of view.

The FT figures are confusing as the cash flow shows a major change in current assets for 2011, yet the current assets and liabilities are normal.
Is this an error?

Does anyone monitor the metrics for Delcam?

Normally I am a little wary of software companies.

Additive manufacturing has been the future for 35 years.

apad

[sleepy] 01/3/2013 10:04

Weak sterling should be good for Delcam

[quantumx] 01/3/2013 08:18

I'll happily live with £16.30.

[sleepy] 28/2/2013 21:49

Thanks Staverly.

How did they come up with £16.30?