SDL expects to beat market views

published 17 January 2012

Computer translation firm SDL expects revenues and profits for the year ended 31 December 2011 to be slightly ahead of analyst expectations.

Revenue is expected to be in a range of £228.5m to £229.0m compared with analyst consensus expectations of £228.3m. Pre-tax profit and amortisation of intangible assets are expected to be in the range of £39.5m to £40.0m compared with analyst expectations of £39.2m.

Net cash in the business at the end of the period was slightly above £70m versus £46.6m in 2010.

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Chairman Mark Lancaster commented, "This is strong performance delivered against a challenging macro-economic backdrop demonstrating the resilience, diversity, differentiation and strong cash generation characteristics of our business model."

"During the period we have demonstrated sound progress in the execution of our strategy; investing for growth through innovation and geographic expansion, completing several key new product launches to schedule and desired market impact, and completing the acquisition of Calamares, an enterprise solution for video and rich media management. Excellent progress has been made in new client acquisition for Global Information Management solutions providing a solid foundation for 2012."

As previously announced, its proposed acquisition of Alterian is expected to complete on 27 January 2012.