Alten enjoyed high organic growth in Q2 2022, despite challenging comps. Revenue growth was 18.9% yoy at cc/cs. The performance was strong given that Q1 2021 revenues were up +19.7%. This is the fifth consecutive quarter of ~20% organic growth.
Bertrandt (Modestly) Shifts its Portfolio to Digital with Philotech
Bertrandt announced its first acquisition in years: Philotech will help the firm to (modestly) shift its portfolio. The company had an estimated EUR40m in revenues and is headquartered in Taufkirchenn, close to Munich, Germany.
Akka Shifts its US Strategy and Goes India-Centric
Akka Technologies made a significant shift in its US strategy with the appointment of Dharam Sheoran. Mr. Sheroan joined from Wipro and must have been an ideal candidate for Akka. At Wipro, he headed several global service lines, including automotive and A&D. His experience, therefore, matches Akka’s presence and ambitions in the country.
UPDATED: Akka Completes its Capital Increase. More Restructuring
Akka had a busy end of the year: it completed its capital increase and unveiled a
Segula Acquires the Automotive Engineering Unit of Safran in Spain
French ER&D service vendor, Segula Technologies, acquired the automotive unit of Safran Engineering Services in Valladolid, Spain. The acquired unit is small (with a headcount of 81 engineers). It mostly services Renault.
Cyient Gradually Back to Expansion
Cyient Suffering from its Vertical Mix From the numbers, it may not show. But Cyient is
Akka Raises EUR 200m. Share Up 40%
Akka’s share was up by almost 40% on Tuesday (October 6). The company reassured investors by raising EUR 200 at favorable terms for existing shareholders
Assystem Reassures About Expleo’s Financials
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Alten Does Better than Expected in Q2. H2 Outlook Is Uncertain
Alten announced better than expected revenues in Q2 with a CC/CS decline of 18.4% (we expected -23%), after a growth of 4.0% in Q1. During H1, the decline was 7.3% (guidance: -9%).
UPDATED: Akka Suffers Greatly from its Lack of Client Diversification in H1 2020
Revenues Collapsed in H1 2020 Akka suffered greatly in H1 2020, with revenues down by 20.3%
Earnings Preview: Revenues of Alten to Plunge in Q2
ER&D’s largest pure-play globally, Alten, will be announcing its Q2 2020 revenue by the end of July. The company had a very decent Q1, with a 4% CC/CS revenue growth. However, it warned that revenues would be down by ~22% in Q2.
Expleo’s New CEO: A Perfect Resume and Daunting Challenges
We just learned that Expleo has a new CEO, Rajesh Krishnamurthy. On paper, Mr. Krishnamurthy, has everything right for Expleo. He is a French citizen of Indian origin. He has held senior roles at Infosys, including one as head of the Energy, Utilities, and Telco division, a major responsibility as Infosys is organized by vertical. He also led Infosys Global Consulting.
COVID-19: Cyient Warns of 15-20% Decline in Revenues in Q1 FY21
Cyient surprised, negatively, the markets by announcing a decline of 9.7% in its Q4 FY20 revenues (to USD 149m) and an adjusted EBIT margin down 440 bps (to 8.4%).
Dassault Sytems Lowers its Q1 2020 Guidance: Read-Throughs for the ER&D Service Industry
Dassault Systems lowered it Q1 2020: the company is now expecting revenue growth in the range of 14%-17%, down from a 20-23% guidance (that includes the acquisition of Medidata). The company has suffered from weaker than expected new license and services revenues. Meanwhile, revenues of Medidata were on a “momentum and license renewals were up too.
Covid-19: Slowdown in ER&D Spending Now Likely
Currently, Covid-19 has only affected China significantly, although having spread in South Korea, Japan, and Northern Italy.
Several ER&D vendors have been impacted so far: Ricardo has warned that the situation in the Chinese automotive market would have a “material” effect on its profit.
2020: A Year of Slowdown for ER&D Service Vendors
We are expecting a slowdown in ER&D spending in 2020. Learn more here.
Belcan Acquires in Software Engineering
Belcan strengthened its software engineering capabilities with the acquisition of Base2 Solutions, a firm headquartered in Bellevue, WA and with an office in California. Base2 has a similar client base to Belcan, with major clients including Boeing, Thales, and L3Harris in aerospace and defense.
Airbus’ next priority is digital manufacturing
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QuEST Global expands in supply chain services for the aerospace industry
We missed an important acquisition that QuEST Global announced at the end of June. QuEST has acquired Dakota Moon Enterprises (DME).
How will 2019 look like for the ER&D services industry?
We are now entering the season for Q1 earnings, and as always we will look into changes in major trends. The state of the automotive industry will be an area we will be closely monitoring.
Belcan continues to acquire in the UK
Belcan made its second acquisition in the UK, since it was taken over by PE AE Industrial Partners. The acquired firm is Sitec, through its two units Sitec Design and Sitec Recruitment.
Belcan: growth ambitions in the UK?
The website of Insider Media Limited reported that Applied Technology Consultants (ATC), the primary subsidiary of
Spotlight on Akka’s US Strategy
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