Telelogic Finds Growth Outside Europe

Apr 23, 2004 (02:04 PM EDT)

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Telelogic AB, which makes tools for software-requirements management, reported that its first-quarter revenue rose to $30.7 million, up $4.5 million, or 9%, at constant currency exchange rates, over a year ago.

Pretax profits reached $2.7 million, compared with a loss of $3.2 million a year ago.

Service revenue for the company decreased, though the company says that's in keeping with a realignment last year to concentrate on higher-margin software instead of services.

Europe has traditionally been a strong market for Telelogic, but that pattern may be changing in favor of new markets. Revenue in Europe increased just 2% for the quarter, compared with 19% and 50% for the United States and Asia. Anders Lidbeck, president and CEO, says the company had a 10.7% operating margin and $5.1 million in cash flow.

Telelogic produces the Dynamic Object Oriented Requirements System for capturing software requirements in industry-standard Unified Modeling Language and using those diagrams in its TAU family of developer tools, such as TAU Architect and TAU Developer. Sales of Doors increased 18% in the quarter. Sales of TAU tools increased 9%.

Telelogic Synergy provides a repository of IT infrastructure incidents, problems, and changes. Sales of Synergy increased 5%.