French software and CAD/CAM equipment producer Lectra has reported that business activity in the fourth quarter continued to be affected by a difficult economic climate. Orders for new systems fell by approximately 12% relative to Q4 2004.

Lectra closed two major deals in the quarter: the first was with Mango, for 800 licences of Lectra's new Product Lifecycle Management (PLM) solution; the second was a €5 million contract with Johnson Controls Inc., for Lectra's VectorAuto MP9 automated cutting systems.

Revenues fell by €7.9 million (-21%). The amount of orders for new systems being greater than revenues invoiced, the backlog of orders for new systems totalled €15.6 million as of December 31, up €3.8 million, like-for-like, compared with the backlog in 2004.

The full year performance was also strongly impacted by the abolition of textile quotas and contrasting conditions in the automotive industry. Revenues in the company's three principal regions declined: European revenues (56% of total revenues) were down 11%, North American revenues (18% of total revenues) were down 8%, and Asia-Pacific revenues (18% of total revenues) were down 5%. Revenues for the rest of the world (8% of total revenues) increased by 6%.

Revenues from new systems sales (€110.5 million) decreased by 19%. This decline was felt strongly in all three of the company's main markets. Apparel revenues were down 19%, while automotive, aerospace and marine market revenues were down 12%, and furniture & furnishings, 34%.

With a staff of 1,500, Lectra develops and produces software and CAD/CAM equipment dedicated to industrial markets, including fashion and apparel; luggage & leather goods; footwear; furniture & furnishings; and the automotive, aerospace, and marine industries.