The next industrial era of automated factories and digital supply chains, also known as Industry 4.0, is upon us and Lectra is pioneering this high-tech shift with notable internal investments.
The technology solution provider’s fiscal 2016 results indicated strong growth in operational income and revenues. For fiscal 2016, Lectra’s revenues totaled $279.3 million, which was a 10 percent increase compared to 2015. New systems sales revenues increased by 14 percent ($121.4 million) and recurring revenues rose by seven percent ($157.8 million). Fiscal 2016 operational income increased by 18 percent and the operating margin was up one percentage point (14.3%) compared to 2015. Lectra’s 2016 net income also increased to $28.7 million, which was up $3.5 million from the year before.
Along with strong annual results, Lectra shared its new strategic roadmap for 2017 to 2019, a long-term vision to gear customers, including retailers, for production changes in the coming decade. One core strategic roadmap objective will drive customers into Industry 4.0. This essential objective is to progressively shift new software license revenues into recurring subscriptions with a new Software as Service (SaaS) service. The offer, which is reinforced by cloud integration and uses data analysis, will manage integration between equipment, software and services. Considering consumers are now at heart of retailers’ supply chains, the new Saas offer could help retailers make their production processes more personalized, since they could digitally connect all points of their supply chain together without hiccups.
“This presents an unprecedented opportunity for Lectra, calling for the integration of smart solutions and services, and the replacement of production plants incompatible with connected factory concepts,” Lectra CEO Daniel Harari said in Lectra’s annual report.
In its annual report, Lectra also said it will continue to actively invest in the development of its offers, including new technologies like the SaaS service. R&D expenditures are set to gradually increase, averaging around 10 percent of annual revenues from 2017 to 2019, as Industry 4.0 approaches.
The Inditex juggernaut continued in the first six months of its fiscal year, with solid sales and earnings gains, and aggressive expansion.Read more
Apparel sourcing executives know the old paradigms must shift and are looking to technology as a catalyst, yet they are slow to embrace change.Read more
When the global economy is in flux, the fiber sector doesn’t go unscathed. In fact, experts say the industry is in a state of volatility with considerable ups and downs, significant overcapacity in a number of fiber segments and the backlash from slowing global demand at retail.Read more
Corporate culture may sound like a touchy feely topic but it has cold hard implications for how well your company can cut production times and boost profits.Read more
eBay and Spring are working together to bring coveted brands to eBay’s marketplace and provide consumers with a seamless purchasing journey.Read more
The California Labor Commissioner’s Office has cited 14 garment manufacturers and contractors $372,135 for labor law and garment registration violations, following inspections of 18 garment manufacturers last month in the Los Angeles area.Read more
A drop in car sales dragged retail sales down while non-store retail sales slowed.Read more