Global Graphics PLC
Platforms for digital inkjet printing and type design

News Release

Cambridge, UK  25/04/2014

Trading update for the quarter ending 31 March 2014

PDF version
Cambridge (UK) Friday 25 April 2014 (08.30 CEST) - GLOBAL GRAPHICS SE (NYSE-Euronext: GLOG), a developer of software platforms for digital printing, digital document and PDF applications, provides a trading update for the first quarter of the financial year ending 31 December 2014.

HIGHLIGHTS
  • major contract signed with office printer manufacturer
  • number of gDoc platform partners increases to twelve, one of which is Staples

KEY FINANCIAL INFORMATION
The following information is unaudited.
  • Revenue for the quarter was EUR 2.213 million (2013: EUR 1.880 million), representing an increase of 17.7% over the same period in 2013.
  • Adjusted operating profit for the quarter was EUR 0.123 million (2013: EUR 0.360 million loss).
  • Cash deteriorated during the quarter to EUR 0.846 million because of timing differences between some revenue recognised near the end of the quarter and receipts for that revenue not being due.  Significant receipts are due during the quarter ending 30 June 2014 and a stronger cash balance is expected to be restored.  The Company continues to have no outstanding debt, so no interest payments or capital repayments are required to be made.

Segment sales analysis for the quarter ended 31 March:
In thousands of euros
     2014
     2013
Print segment
     2,018
     1,257
eDoc segment
     195
     623
Total revenue
     2,213
     1,880

The increase in print segment revenue for the quarter is primarily from the new contract that was announced on 4 March 2014.

A one-off amount of EUR 0.512 million for under reported royalties from prior years was included in the quarter ending 31 March 2013.  Excluding that revenue, the eDoc segment showed a 75.7% increase in revenue during the quarter over the same period in 2013.

MANAGEMENT’S COMMENTS
Gary Fry, Global Graphics’ Chief Executive Officer, comments, “We are very pleased to have announced our recent contract to license Harlequin technology to a global manufacturer of office printing devices.  We believe that similar opportunities exist for this technology and that this type of contract is repeatable.  Therefore, we have made strategic appointments in Asia and Japan to support this anticipated growth.

“We also see more opportunities in high-speed digital production printing, where we remain a dominant player, and we have been working with a new partner in digital labelling and packaging.

“With regard to our digital document technology, namely the gDoc platforms, the number of partners we have signed has grown to twelve, all of whom are working on building and promoting gDoc-based solutions. One of our newest partners is Staples for whom we created a solution to significantly enhance the functionality and user experience for their in-store printing and binding services across 1500 outlets in North America.
“We expect 2014 to mark a significant growth period for Global Graphics, largely due to the new contract we have secured in the office printing market. This opens up opportunities for us to invest sensibly and strategically in new areas of growth.”


ANNUAL SHAREHOLDERS’ MEETING
The Company's annual general meeting will be held at 13:00hrs (Central European Summer Time) on Friday 16 May 2014 at Andlinger & Co, Avenue Louise 326, 1050 Brussels, Belgium.  Details of the proposed resolutions and proxy form can be found on the investor section of the Company's website at http://www.globalgraphics.com/investors/annual-shareholders-meeting/.

ANALYST MEETING
Global Graphics will hold an analyst meeting at 14:30hrs (Central European Summer Time) on Friday 16 May 2014 at Andlinger & Co, Avenue Louise 326, 1050 Brussels, Belgium.  

RESULTS FOR THE SIX MONTHS ENDING 30 JUNE 2014
The Company expects to publish its condensed consolidated financial statements for the six months ending 30 June 2014 on Tuesday 19 August before market opening.

Editors notes

About Global Graphics
Global Graphics (http://www.globalgraphics.com) is a leading developer of software platforms on which our partners create solutions for digital printing, digital document and PDF applications. Customers include HP, Corel, Quark, Kodak and Agfa. The roots of the company go back to 1986 and to Cambridge University, and, today the majority of the R&D team is still based near this iconic university town. There are also offices near Boston, Massachusetts and in Tokyo.  


Forward-looking statements
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding the Company’s growth, funding, expansion plans and expected results for future periods.
 
Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Although management believes that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure any reader that the expectations will prove to have been correct. Accordingly, any reader should not place undue reliance on these forward-looking statements.
 
In any event, these statements speak only as of the date of this release. The Company undertakes no obligation to revise or update neither any of them, neither to reflect events or circumstances after the date of this release, nor to reflect new information nor the occurrence of unanticipated events.

Contact

Graeme Huttley Chief Financial Officer Tel: +44 (0)1223 926472 Email: graeme.huttley@globalgraphics.com Jill Taylor Corporate Communications Director Tel: +44 (0)1223 926489 Email: jill.taylor@globalgraphics.com