Global Graphics PLC
Platforms for digital inkjet printing and type design

News Release

Cambridge, UK  12/04/2016

Global Graphics: Trading update for the quarter ended 31 March 2016

PDF version
Cambridge (UK) Tuesday 12 April 2016 (18.00 CEST) - GLOBAL GRAPHICS SE (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 2016.

Financial highlights for the quarter ended 31 March 2016

The following information is unaudited.
  • Revenue for the quarter was €5.25 million (2015: €5.19 million).
  • The Company's measure of adjusted operating profit was a profit of €1.98 million (2015: €2.62 million) for the quarter.
  • Cash at 31 March 2016 was valued at €3.41 million (2015: €3.51 million).  The Group continues to be debt free, therefore, has no interest payments or capital repayments to make.

Operational highlights for the quarter ended 31 March 2016
  • Casio Computer Co., Ltd ("Casio") chose the Harlequin Embedded RIP to enhance their Japanese office colour printer SPEEDIA GE6000 by adding native PostScript and PDF support into its new optional unit.   Using the Harlequin Embedded RIP, Casio has added native processing of PostScript data with full PostScript compatibility and a PC-less direct print feature for PDF files.
  • A strategic business relationship with Roland DG Corporation ("Roland"), a global, leading manufacturer of wide-format inkjet printers and printer/cutters, was announced during the quarter.  Roland chose the Harlequin RIP to provide their customers with the ability to efficiently handle ever larger and complicated colour files and to be able to collaborate with the experienced and talented team of Global Graphics engineers who specialise in colour management and screening technology to provide solid support for their customers.  It will also allow Roland to reduce lead times for bringing products to market.
  • During the quarter, the Company announced that it is strategically aligning itself with Hybrid Software to provide digital press manufacturers with an “unbeatable” package of RIPs and workflow. It is expected that drupa 2016 will provide a launchpad for a combined solution.
  • A major new release of the Harlequin RIP, the software engine that drives the printing industry’s highest performing digital presses, was launched during the quarter.  Reputed for the quality of its output as well as its speed, the Harlequin RIP transforms design and pre-press data into a format that can be printed and feeds those pages to the press. It’s compatible with a wide range of PDF design tools and compliant with industry standards.  The new version, Harlequin 11, raises the bar in output quality by introducing features to improve inkjet output quality, offers more controls for variable data printing, and contains new features for labels and packaging applications.
  • A new generation of aqueous inkjet printers from Think Laboratory that will print onto plastic film for applications such as short-run food packaging, will be powered by the Harlequin RIP.  Think Laboratory, a global supplier of advanced gravure engraving equipment based in Japan, has licenced Harlequin because it is faster than other vendors’ technology and can produce optimal output quality thanks to Global Graphics’ new multi-level screening technology which was launched earlier this month and will be on show at drupa 2016.

More information about all of the above can be found in the news section of the Company's website at http://www.globalgraphics.com/news/


Revenue analysis

The Company has adopted IFRS 15 Revenue from Contracts with Customers ("IFRS 15") in advance of the mandatory adoption date of 1 January 2018 and will apply it to its consolidated financial statements for the year ending 31 December 2016.  Full disclosure of any effect of the change in accounting standard will be disclosed in accordance with the transitional requirements of IFRS 15 in the Company's consolidated financial statements.

IFRS 15 and its associated interpretation guidance is more detailed and specific in its approach to revenue recognition than IAS 18, including specific guidance for licensing scenarios that the Company is involved in.  Adopting IFRS 15 early ensures a consistent approach to revenue recognition that may not be possible under IAS 18.  Some revenue will be recognised earlier than previously, whilst some revenue will now be deferred until a later date, depending on the contractual arrangements.

If IFRS 15 had not been adopted by the Company, under its existing revenue recognition policy, revenue for the quarter would have been €2.63 million.

During the quarter, a customer in the Print segment exercised an option in their contract which resulted in the recognition of revenue totalling €2.87 million.  The cash receipt for the license fee will be received during the years ending 31 December 2016 through to 2020.

On 4 March 2014, the Company announced that it had signed a contract to license its Harlequin technology to a global manufacturer of office printing devices to drive their single function, multi-function and production printers.  The contract has been included in the Print operating segment and is included under the Office market heading.  During the quarter €0.04 million (2015: €3.42 million) was recognised as revenue from this contract.

The run-up to drupa 2016 has caused a slowdown in shipments from some customers in the Print segment, which has resulted in lower than expected revenue from those customers during the quarter.

Segment sales analysis
The following table provides information about revenue for the Group's operating segments for the quarter ended 31 March 2016.
Quarter ended 31 March
€ 000s
2016
2015
Print
4,498
4,955
eDoc
177
238
Fonts
579
-
Total revenue
5,254
5,193


Strategic market sales analysis
The following table shows the revenue attributable to each of the strategic markets for the quarter ended 31 March 2016.
Quarter ended 31 March
€ 000s
2016
2015
High-speed
358
484
In-house
9
9
Office
262
3,707
Traditional
4,046
993
Fonts
579
-
Total revenue
5,254
5,193



Annual General Meeting

As announced on 24 March 2016, the Company's Annual General Meeting will be held at the offices of Andlinger & Co, Avenue Louise 326, 1050 Brussels, Belgium on Tuesday 19 April 2016 at 10:00 hrs (CEST).

A copy of the complete notice and other supporting information, including explanatory notes, requirements for proof of ownership of shares and the proxy form, is available for download from the investors section of the Company’s web site at: http://www.globalgraphics.com/investors/shareholders-shareholders-annual-general-meeting.
Results for the six months ending 30 June 2016

The Company expects to publish its condensed consolidated financial statements for the six months ending 30 June 2016 after market close on Tuesday 26 July 2016.

Editors notes

About Global Graphics
Global Graphics (Euronext: GLOG) 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 the iconic university town of Cambridge, and, today the majority of the R&D team is still based near here. There are also offices near Boston, Massachusetts and in Tokyo.    

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