French developer of software and hardware for industrial users of textiles, leather, and soft materials, Lectra, has reported a slight improvement in business activity in the first six months of 2005, despite feeling the continued effects from the abolition of textile quotas.

The company said that business activity in May and June improved slightly compared with the first four months of 2005, when orders were down by approximately 30%. Income from operations in the second quarter was €1.9 million and net income, €1.3 million compared with a loss of €0.9 million from operations and a net loss of €0.5 million in the first quarter of the year.

However, orders for new systems fell 8% (–€3.2 million) compared with the same period in 2004 and revenues fell by 16%.

For the first half of 2005, revenues and earnings decreased by 21% to €52.9 million for new systems, but revenues from recurring contracts actually grew by 11% (+€2.9 million).

Lectra operates in a range of major markets, including fashion and apparel; luggage and leather goods; footwear; furniture & furnishings; and the automotive, aerospace, and marine industries.