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Common Sense Advisory Blogs
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SDL Expects Profits to Exceed Market Expectations
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SDL will report its 2005 results on 22 February 2006, but it revised its guidance to the financial markets this morning. CEO Mark Lancaster cited the adoption of SDL's GIM solutions as a driver for new business. We expect that the Trados acquisition catalyzed the improved performance, along with cost savings from unified marketing, operational, and product development efficiencies. SDL's stock rose 10% today on the news with a huge trading volume, up to 78% above the average daily trading activity as surprised investors reacted to the guidance. We will have to wait until we see SDL's consolidated results in February before we can analyze profit and revenue results. At that time we should be able to see the impact of SDL's global information management strategy plus the rationalized staffing, operational, and product offering that came as part of its acquisition of Trados. In mid-2006, once we have 6 months of consolidated information to review, we will update our January 2005 business analysis of the company, SDL 2005: Opportunities and Challenges. SDL announced a successful implementation of its Knowledge-Based Translation (KbT) System at Chrysler Group in Europe. The KbT solution integrates machine translation (MT), translation memory (TM), workflow, and human services in a closed loop (see "SDL Puts Machine Translation in Its Place"). The implementation came as part of SDL's work with Tweddle Litho. According to a DaimlerChrysler executive, "the Tweddle/SDL Solution has exceeded our expectations for translation quality control, delivery and cost reduction." These kinds of customer success stories will be essential to growing SDL's US$30 million technology business.
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