MONTREAL – Software maker 20-20 Technologies Inc. (TSX:TWT) says a large contract from an existing customer helped push up its second-quarter revenue by 5.2 per cent to $17.9 million, although its profit shrank to just $200,000.
The Montreal-based company’s 3D software is used for interior design and furniture manufacturing,
Its net earnings for the three months ended April 30 amounted to one cent per share, down from five cents per share or $1 million in the year-earlier period.
Jean-François Grou, 20-20’s chief executive officer, said the company is keeping its operating expenses under tight control but they have been temporarily affected by a reorganization of its professional services organization and lower utilization rates, mostly in North America.
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“We will adapt our cost structure in the short term to restore a minimum level of profitability in our services activities,” Grou said in the company’s announcement.
The Americas represent about half of 20-20s overall revenue. The second-largest region encompasses Europe, the Middle East and Africa (EMEA) with 45.7 per cent of total revenue. The Asia-Pacific region accounts for 4.1 per cent.
Revenues in the Americas declined by 3.4 per cent in the second quarter over the previous year due to continued soft market conditions in the U.S. affecting professional services and the manufacturing sector.
However, the company noted, revenue in the Americas was up 11.8 per cent compared to the previous quarter.
Revenue from the EMEA region increased by 15.5 per cent, fuelled by a large contract in the U.K. from one of Europe’s largest vertically integrated manufacturers of kitchens and new projects in France.
Asia-Pacific revenues increased by 3.6 per cent over 2011 and by 24.9 per cent sequentially over the first quarter of 2012.
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