Delcam Share Discussion Threads

[cockneyrebel] 30/3/2005 15:19

depends whether you can work out where we are in the cycle Frauddy.

If you think the cycle has topped out then no, not a buy. Has the cycle got a lot further to run? Perhaps.

You pays your money and takes your choice Frauddy - either way you're late to the party tho.

CR

[ydderf] 30/3/2005 15:14

this is really an old-fashioned cyclical, just look at the earnings history, ranges from 12-22p over past five years....not really surprising given that they supply industry at large with kit, but should it be a 'buy' at the top of it's cycle? Sometimes the jury can be aware of previous convictions to its advantage...........!

[tole] 28/3/2005 12:43

Just been looking into EGS and thought i'd also post this bit off the EGS website. Nice bit about market profile and market share at the end. :)

"The acquisition will help provide the additional exposure and resources necessary to move FeatureCAM to an even higher level of automation to better serve our customers," says Glenn McMinn, President of Engineering Geometry Systems. "Delcam is an experienced player in the CAM business and, as a result, the company has a much broader reseller network with more than 150 offices in 60 countries. Being part of Delcam will help us grow our sales significantly and increase our international market share."

With this acquisition, Delcam will provide an even broader range of quality products to address the worldwide need for CAM at various price points. "We recognize the importance of the FeatureCAM brand name in the industry and its unique position. The addition of the FeatureCAM family will accelerate our sales growth by giving us strength in automated and feature-based production machining. This will complement our industry-leading products for toolmaking and other complex manufacturing operations," commented Mr. Humphreys. "In addition, FeatureCAM's high reputation with its users will further raise Delcam's profile and market share in the CAM industry, especially in the important North American market."

[tole] 27/3/2005 20:27

Delcam buys US software developer
Plastic and Rubber Weekly. By David Eldridge 23/03/2005

The UK company has bought EGS and its FeatureCAM product range.

23 March 2005 – Delcam has extended its position in the CAD-CAM software market into the US with the acquisition of Engineering Geometry Systems, based in Salt Lake City .

Delcam will change the name of EGS to Delcam USA, but will continue the company's FeatureCAM software as an independent product line developed in the USA and marketed worldwide .

FeatureCAM was launched in 1995 as a Windows-based milling system, but the range has since grown to include turning, wire-EDM, mill-turn packages and feature recognition for imported CAD files .

Delcam managing director Hugh Humphreys said: "Both companies produced record sales in 2004, so it only makes sense to continue to strengthen both product lines and aggressively market them worldwide ."

He said the addition of the FeatureCAM range and its strength in automated and feature-based production machining will accelerate Delcam's sales growth .


Just a repeat of the rns, but thought I'd post it. Just nice to to see the MD mentioning the RECORD SALES IN 2004. Just in case anyone missed it ;)

[cockneyrebel] 22/3/2005 17:56

No date - it will get sprung on us no doubt.

CR

[tole] 22/3/2005 16:53

LONDON (AFX) - Delcam PLC said it has bought US-based CAM software specialists Engineering Geometry Systems, the developer of the FeatureCAM CAD/CAM software line for 1.6 mln stg cash.
FeatureCAM will continue as an independent product line, developed in the US and marketed worldwide, the company said.
Delcam said the company expects its earnings to be enhanced during this year, with further benefits in future years, as its larger distribution channel is able to increase FeatureCAM sales progressively.

Nice spot - Missed this earlier - shame they just couldnt have waited a few more days to annouce - was looking for more around 205. Still keeping hold of what I have got though. Results must be due soon, no date yet?

[cockneyrebel] 22/3/2005 15:36

A nice earnings enhancing acquisition just announced :-)

CR

[cockneyrebel] 27/2/2005 16:06

cheers Tole, nice finds :-)

CR

[shuisky] 24/2/2005 23:53

I just feel sorry for all those punters who sold out fearing the collapse of the dollar. The newspapers were absolutely full of this tosh in the New Year, and IMHO, managed to convince more than few that Delcam was doomed on the back of a crash in the Dollar.

As long as they are achieving volume increases and diversiying their end markets, then the gained customers will buy future solutions from them and when the Dollar recovers, all of the gained volume will fall into an strong acceleration of sterling earnings.

[cockneyrebel] 18/2/2005 19:30

Thanks. They look cheap to me - the dollar might fall still but doesn't seem to be plummeting. Dec has been the strongest month ever. If that's the case then better than 24p may be on the cards for 2005.

They sound bullish and I think we'll see that at the results imo.

CR

[tole] 18/2/2005 19:06

CR you can get their previous broker forecasts off their web site. Took this off their web site relating to their house broker forcast back in december when they stated concerns regards the dollar.



-While sales volumes, particularly in Delcam's North American and Far Eastern territories have continued to grow (up an estimated 10%-15% in FY04), the weakness of the US Dollar has had a negative impact on translation, and with no recognisable US cost base, this impact flows straight to the bottom line. Delcam believes that if exchange rates had been constant in the period, it would have outperformed market expectations.

-At the half year point, Delcam looked to be on course to meet our full year expectations, despite an already weakened US$. However a recurring trend for Delcam is that a significant proportion of its licence sales occur in the final few weeks of the financial year (through December) as smaller to mid size engineering companies utilise period end budgets. It is therefore unfortunate that the further recent slump in the US$ has adversely impacted this important trading period for the group.

-Despite the set back, the business as a whole appears healthy. The balance sheet is strong (estimated year end net cash position of £0.6m – after a £1m cash pension fund contribution) and we expect the dividend to be maintained at FY03 levels. The group is also to benefit from a lower than expected tax charge (circa 10% against our 20% estimate) as it takes advantage of R&D tax credits.

-We take comfort that underlying sales growth in its key overseas markets continue unabated. That said, the continued weakness of the US$ will impact revenue growth next year relative to 2004, thus we have downgraded our FY05 expectations. This leaves Delcam on a prospective FY05 earnings multiple of 10.4x which remains a substantial discount to the sector as a whole.


What you say above re corporate synergys forecast - The house broker has 24p eps as the forecast estimate for 2005 and not 2004 and was revised to 20.8. Their estimate for 2004 was 21.6 and revised to just 16.4.

Agree that these figures need to be revisited, especially if trading has been going well these early months and moreso if they land any nice orders off those potential large multi national corporations they have been dealing with lately.(As hinted in the trading update imo) or further growth from their diversed business areas.

And regards possible eps this year if tehy do anything like they were previously thought to achieve at 1.9 pretax and 24p eps on a potential low PE of 12 - gives us 290 or on a PE of 13 would be 336....

Not bad really. And that is regardless of whether the dollar appreciates this year too.

[wjccghcc] 17/2/2005 14:28

I'm a little concerned that they warned in December (even though due to the dollar). Implies low visibility of their revenues. Was yesterdays statement with respect to revised forecasts or those prior to the Dec warning?

[quantumx] 17/2/2005 12:48

The only problem with this share is the thin market, even a small buy pushes the price up significantly. Could hold back any serious buying of this share.

[cockneyrebel] 17/2/2005 11:39

On course to make record earnings in the year ahead - share price nothging like at record levels tho.

CR

[tole] 17/2/2005 11:23

Lol. Any chance if you get 5mins to slap a chart up with the header, always nice to see movement when it happens.

Anyway, my best bit from yesterdays update..

"We have received a number of orders from larger multi-national corporations in
recent months, although the majority of our business still comes from small- and
medium-sized companies. While these have not been unusually high in value, we
are, of course, hopeful that these initial orders will lead to larger
opportunities in the future."

Shows the potential for some serious contracts which I believe wont be far from coming...

[cockneyrebel] 17/2/2005 11:12

Yes - that's me - typing is carp and I'm word-blind too - good job I can work out figures quite well or I'd really be buggared! :-)

CR

[tole] 17/2/2005 11:07

Is it my imagination or has the title changed here overnight.... ;-)
nb. Headline is spelt wrong...but who cares...Like Delcam, just thought i'd add my pure value to the thread......

[cockneyrebel] 17/2/2005 10:58

Well if they are going to meet just their housebroker forecasts of 16.4p eps this year which is the lower of the two then the forecast their current forecast of 20.8p eps in the year ahed puts DLC on a PE of 11.

I'd say there's a great chance they are well ahead of this and the PE is in singled digits.

These lowest broker forecasts are for 27% growth.

Also they have done this in the face of a falling dollar and what's more they say December wast their strongest month ever which suggests again that there could be upgrades.

Looks a screaming buy to me.

CR

[quantumx] 16/2/2005 14:55

This one only takes the dollar to strengthen (not likely!) and EPS will increase yet again. Interested to see the 28p forecast for next year.

[cockneyrebel] 16/2/2005 13:57

These have to trade on a forward PE of 12 or more, 20% forecast growth and very bullish on the year ahead :

"At the same time, we have continued our diversification outside our traditional
toolmaking market. While this is still an important part of our business, we
have seen considerable growth in our sales to industries as diverse as
aerospace, autosport, packaging, medical and jewellery. We expect to see
further growth from these sectors in 2005,"

Just a PE of 12 and forecast earnings of 24.3p the share price will be 291p.

A forward PE of 15 like a lot of software companies are trading on and eps of 28.3p like Corporate Synergy are forecasting and the price is 424p.

And a divi too :-)

CR

[cockneyrebel] 16/2/2005 13:22

Concensus for this year is 20.2p eps, PE 11.

Concensus for the year ahead 24,3p eps = PE 9.

Corporate Synergy are forecasting 28.3p ep next year - if that's right the PE is under 8 ! !

That's a low PE let alone for a software company imo.

CR