Delcam Maintains R&D Budget Despite Downturn

CADCAM developer Delcam has maintained its levels of research and development expenditure during the first half of 2009 despite feeling the effects of the global economic downturn. The company invested over £4.7 million in R&D during the period, a small increase from the £4.5 million invested in the first half of 2008. This strategy is in marked contrast with some other suppliers in the CAM market, which have cut their investment in development as their sales have fallen.

Delcam also continued to invest in other areas of its business, including the opening of a new Asian office based in Singapore for its Professional Services Group and the addition of a large five-axis machine tool in its Tooling Services Division.

Despite the fall in sales and its continued high levels of R&D expenditure, Delcam remained profitable. Commenting on the results, Delcam Chairman Peter Miles, said, "Reflecting the global financial and economic crisis, the trading environment in 2009 has been challenging and the impact of the downturn in the manufacturing sector has been even harder than we initially anticipated at the end of last year. With many companies postponing their investments in capital equipment, it is to be expected that the associated software sales should also be delayed.”

"However, as we stated in our 2008 annual report, given Delcam’s strong financial position and high level of recurring income, we believe that the business is well placed to see out the near-term challenges. In particular, we are continuing to invest significantly in product development and marketing. This provides us with an increasing commercial advantage and will help to support our ambitions to build our market share during the downturn.”