Report

Two steps forward one step back

PSI’s underwhelming financial performance and lower revenue guidance for FY16 reflect difficult trading conditions as well as retaining price discipline and moving away from lower-quality business lines. The transformation of the PSI’s model should advance in FY17 with the migration of key Production Management modules to its new software platform. We still see significant upside potential if PSI can execute its plan and expand margins well into double digits, although this may be at the expense of organic top-line growth in the near term.
Underlying
PSI AG

PSI AG fuer Produkte und Systeme der Informationstechnologie is engaged in the development and selling of sofware products. Co. is divided into three main business segments: energy management, which developes solutions for electricity, gas, oil and water utilities; production management, which provides software products and customized solutions for production planning, other production controls and efficient logistics; and infrastructure management, which provides control solutions for monitoring and effective operations in the areas of traffic, public safety, environmental protection and disaster prevention.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts
Dan Ridsdale

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