Expleo’s New CEO: A Perfect Resume and Daunting Challenges

/ July 3, 2020

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.

Ricardo Exits the Automotive Engine Testing Business

/ June 16, 2020

Ricardo divested, as expected, its engine testing and prototype facility in Belleville, MI. The company had looked for a buyer for more than one year and even bought the property to make the sale of the facility easier.

Dassault Sytems Lowers its Q1 2020 Guidance: Read-Throughs for the ER&D Service Industry

/ April 7, 2020

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.

Tuck-In Acquisitions Continue Despite the Stock Markets Melt-Down

/ March 11, 2020

Despite the stock market melt-down, ER&D vendors have continued to make tuck-in acquisitions in the past two weeks. The acquired firms were of small size and not likely to impact the net debt of their new owners. However, should the Covid-19-China-US trade-war-Stock Markets meltdown-oil price crisis degenerate into a recession, we expect suck tuck-in acquisitions to become scarce.

Akka Launches a Mandatory Offer for Data Respons

/ March 10, 2020

Akka has launched a mandatory offer for Data Respons (DR) that will provide shareholders the opportunity to sell their DR shares. The company has been active on the stock markets since the end of its tender offer on February 13, raising its stake from 72.9% to 78.1%. Akka is hoping to reach 95% of shares and launch a squeeze-out offer later one.

Covid-19: Slowdown in ER&D Spending Now Likely

/ February 29, 2020

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.

Bertrandt: Soft Quarter in Q1 FY20

/ February 23, 2020

Bertrandt had a soft quarter in Q1 FY20 (corresponding to calendar Q4 2019): revenues were flat (+0.4%) to EUR 263m, impacted by project delays, and reduced utilization rates in its Digital Engineering (DE) unit (-3.0%). DE, Bertrandt’s largest unit (55% of revenues), suffered from Germany OEMs shifting their R&D spending to digital.

KPIT Had A Solid Q2. Strategic Questions Remain

/ November 29, 2019

Automotive engineering pure-play KPIT continued on its growth momentum in Q2 FY20 (+15.2% yoy), enjoying a satisfactory EBITDA margin of 13.4%. KPIT’s financial performance was, however, a notch below that of Q1 both in terms of revenue growth (Q1: +19.3%) and margin (14.6%).

Wipro Expecting An Acceleration in E&IS from Q3 Onward

/ October 19, 2019

During its Q2 FY20 earnings call, Wipro provided some light about the performance of its Industrial & Engineering Services (E&IS) unit.
It is not so long ago that Wipro was corporate India’s strongest name for ER&D services, mostly servicing clients in the network equipment provider industry and also semiconductor manufacturers.

KPIT: a high-growth automotive pure-play

/ September 1, 2019

KPIT published its Q1 FY20, its second quarterly earnings since it became an automotive ER&D pure-play, since the sale of its IT service business to Birlasoft, last year.

UPDATED: Segula finalizes its outsourcing contract with PSA. Reduced scope!

/ August 30, 2019

PSA finalized its outsourcing contract with Segula, almost one year after it was announced. Looking at the details, the scope of the contract is much smaller than expected, with the people transfer initially involving 700 employees, rather than the 2,000 expected. Segula has agreed to take over the new engineers and guaranteed similar wages and benefits and also purchasing buildings and facilities.

EDAG issues a profit warning

/ July 30, 2019

EDAG issued last night a profit warning for its full-year 2019 operations. The company is now expecting revenue growth by approximately 1% (previous guidance 5%), an adjusted EBIT margin of 4%-5% (previously 5%-7%), and a net profit of EUR 10m.

KPIT returns to the stock market

/ May 1, 2019

Last week, KPIT Technologies, returned to India’s BSE and NSE. The company now has a market cap of approximately USD 410m with its share was introduced at a price of INR 99 and traded in the past few days between INR 103 and INR 115. KPIT has succeeded in its IPO and is now an ER&D service pure-play having sold its IT services business to Birlasoft.

Segula open a new delivery center in the east of France

/ April 17, 2019

Segula Technologies has opened a new delivery center, close to Montbéliard, in the east of France. Segula will use the delivery center for its offsite projects, targeting the automotive industry (i.e., PSA) and its suppliers initially. Over time, Segula wants to diversify its client base to other sectors.