ASCON, the Largest Russian CAD/PLM Company: Results of 2009 and Plans for 2010

ASCON is keeping not less than 25% of the Russian CAD market – approximately as Autodesk and considerably more than other world leading CAD companies. At a press-conference in Moscow on 23rd March, ASCON top executives announced figures characterizing company performance in 2009 and plans for 2010.

In 2009 the company attracted 650 new customers, while the overall number of the companies using ASCON solutions exceeded 5400. Sales reached 544.2 million Rubles (approx. $18 million); in comparison with 2008 the level of revenue decreased by 28%. On the whole, the company closed 2009 with operating profit and positive net profit margin. ASCON is committed to the principle of open information policy and is the only player in its segment of the Russian IT-market that discloses financial results. Maxim Bogdanov, ASCON CEO: “2009 was marked by a sharp drop in industrial production in the major regions of ASCON business. Our customers cut down their investments in automation by half. We have been too optimistic in our forecasting, which we based on our experience of surviving the 1998 crisis. Our efforts to improve internal efficiency, centered on clearly defined priorities, enabled the key achievement – maintaining the scope and momentum for developing new program products”.

With regard to industry markets, 70% of sold software products were design and manufacturing solutions for machine- and instrument- building, 30% - design solutions for industrial and civil construction.

The income from project implementing, training and integration increased by 11% and has now exceeded 20% of the total revenue.
In 2009 ASCON focused its efforts on the two sectors: the military-industrial complex and oil and gas. The largest automation projects were implemented for TATNEFT (one of the largest Russian oil companies), KB Mashynostroyenia (a major development and production center specializing in design, manufacture, test and integration of various armament and military equipment), Russian Federal Nuclear Center, State Research and Production Space-Rocket Center "TsSKB-Progress", Bashneft (Oil of Bashkiria). ASCON entered into an Agreement with the Federal Space Agency for expanding the use of ASCON software by the companies of Russian rocket and space complex.
Overall, in 2009 АSCON increased its revenue from the projects in the military-industrial complex by 9% and in the oil and gas sector– by 14%.

2010: Plans and Events
In 2010 positive economic trends will remain volatile; there is a risk of stagnation of domestic industry. Sales are planned at 2009 level.

The schedule for releasing new versions of ASCON flagship solutions:
May – KOMPAS-3D V12, 3D CAD
July – KOMPAS-SPDS V12, design system for AEC
September – ASCON 2010 integrated solutions for manufacturing and AEC
October – KOMPAS-3D V12 for international market.

The company will focus on implementing the already started and launching new end-to-end automation projects in oil and gas, petrochemicals, defense and nuclear industries. ASCON investment program comprises balanced development of the company’s product line, development of new generation solutions and further advancement on foreign markets. ASCON strategy is to consolidate advantages of a software developer and an integrator. Today the company’s portfolio includes: a professional product line, a powerful team of developers, end-to-end industry IT-solutions, and extended infrastructure for training, maintenance and technical support.

ASCON: key figures - 2009:
Sales - 544.2 million Rubles
Customer base - over 5400 companies
Sales pattern: software (78%) and services (22%)
70% software sold - design and manufacturing solutions for machine- and instrument- building
30% software sold - design solutions for industrial and civil construction.
Regional markets: Russia (89%), Ukraine (4%) and Kazakhstan (3%)
Share of partner network in corporate income - 28%.

See also Ralph Grabowski ‘s detailed article about ASCON.
ASCON Web site in English:

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