Asian Surveying & Mapping
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CostaConcordia

Regarding sales performance, and variations in different global markets, the following details were outlined:

  • The blended Intergraph (software) and Hexagon (hardware) business has a favorable effect on cash flow, where the traditional hardware business involves building an inventory, invoicing and then getting paid, with software the licenses are essentially pre-payments.
  • Investment activities were higher than normal for the quarter (with the purchase of MicroSurvey and a Brazilian software company SISGRAPH)
  • Currency impacts show that Western Europe was down 3% with the European debt crisis.
  • The strongest growth was in South America
  • Asia saw great advances, particularly for Intergraph where software sales increased 70% for the quarter via the sales channels that other business units have established.

The call also highlighted some interesting applications of Hexagon technologies, including:

  • Use of Leica measurement technologies to monitor the Costa Concordia cruise ship wreck, with automatic total stations used, and monitoring prisms mounted on the vessel
  • They have developed a Metro Inspection System for the Chinese Market with the ability to survey coordinates of buildings, pipe lines and tracks.
  • They are involved in a large-scale landslide monitoring project with partner Hydrochina Huadong Engineering to monitor landslide of Kala Hydropower Station
  • Novatel and Stara have partnered to deliver precision agriculture solutions for Brazilian farmers

Overall for 2011, the company saw sales growth of 46% with 12 % organic growth and margins at 20% and operating cash flow increases of 35%.  There is a focus within the company on increasing the margins of the SG&I business where Intergraph resides (which is in the teens). Going forward, the company sees a strong benefit from the Intergraph integration, particularly in R&D projects. Rollén indicated that the company is ahead of their target on this integration.