The Paris-based company saw revenue rise to $40.8m in the quarter. But most of the growth came from maintenance and consulting revenue (up 24% and 38% respectively in the quarter) as overall license sales across Ilog’s three main product lines – BRMS, optimization and visualization – slumped 6% year-over-year in the quarter.
The company also fell back into the red, to the tune of $2.56m. That after reporting a profit of $1.24m in the same quarter a year ago. The loss per share translated to 14 cents, compared to earnings of 7 cents a year ago.
Taken separately, BMRS managed to grow a modest 3% and included large deals with a US-based global logistics company which intends to use Ilog’s JRules software as part of a legacy modernization project, and the largest Dutch civil servant pension fund to support a retirement computation system.
Product revenue from Ilog’s optimization business, which it gained through its 1997 acquisition of CPLEX, grew 9% on the back of deals with Airbus, for a custom planning and scheduling applications connected with the new 380 aircraft and to optimize supply chain network design and inventory applications for a large Mexican drinks distributor.
Ilog’s visualization revenue grew 6% and included a large OEM renewal with Oracle for its JViews software.
Ilog CEO Pierre Haren blamed this summers’ credit crunch on delayed deals among its banking customers and a strong Euro which he said hindered our profitability in the quarter.
Haren hinted that the shortfall in license growth might mean the company falling short of its full-year guidance.
Nonetheless we stand behind our target of in excess of 20% full year revenue growth, along with our US GAAP operating profit to over $10m, assuming average Euro-dollar exchange rate of 1.35 – 1.40 for the year, Haren said.
