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Consolidated results for the first half year of 2006/2007 (Oct 2006-March 2007) and shareholder meeting

Consolidated revenues for the second financial quarter were 0.87 M€. Operating revenues (including the research grants) were 1.09 M€. Consolidated operating expenses were 1.89 M€.








3 months

3 months

6 months

6 months







- 0.90

Operating revenues





- 0.98

Operating result





- 0.06

Result before goodwill amortization





+ 0.22

Net result





+ 0.21

(*) Non-audited consolidated sales

Explanations for these poor results are as follows:

  • this is a quarter without a new version, so traditionally worse than the previous one,

  • the company has devoted time and energy to put in place the new round of financing,

  • during that period, the company has operated under extremely tight financial conditions ,

  • poor consulting results, both in France and in Brazil impacted the numbers,

For the first semester, consolidated revenues were 2.12 M€ as compared to 3.02 M€ in the previous exercise. Since that time, expenses for the half year have been reduced by about 0.90 M€, from 4.7M€ to 3.8M€.

  • decrease in revenue comes mainly from a decrease in consulting revenue from 1 M€ to 0.25 M€, this being in large part due to the loss of the BenQ revenue,

  • retail and distributor revenue grew, thanks to the recruitment of new partners,

  • OEM revenue were stable,

  • E-commerce revenue grew in numbers, but not in margin, due to the good performance of Mandriva Flash, a product with lower margin,

  • User club was sharply down,

  • training sales were up,

Besides some temporary problems, we believe the company has some structural issues:

  • expense structure is too heavy,

  • the company does too many things.

To address these issues, a new plan is being put in place, as part of the new round of investment, which includes:

  • expense reduction, in the order of 1M€ per year, this reduction is already in process, but has not impacted those figures,

  • focus on two key targets

    1. consumers through OEM agreements in emerging markets,

    2. desktop migration and administration in large organizations.

The new plan will include a new organization of the company. It is being refined and will be presented in more detail during the month of June.

A shareholder meeting was held on May 25 at Mandriva's headquarters. Besides approving the 2005-2006 financial numbers, it approved the following resolutions:

  1. a capital increase of 1.65 M€ reserved to OCCAM Capital, the new reference investor of Mandriva,

  2. the acquisition of Linbox for 280K€ in cash and 200K€ in shares and the authorization to the board of directors to increase the capital in consideration of the contribution made by Linbox,

  3. authorization granted to the board of directors to decide and acrry out a capital increase of up to 1.6M€ open to all Mandriva shareholders and already guaranteed at up to 75% by OCCAM Capital and other existing shareholders,

  4. a capital increase of 55K€ reserved to Mandriva employees.

About Mandriva

Mandriva is one of the world leading editors of Linux operating systems and open-source software. The company develops and markets the Mandriva Linux operating system. Several hundred developers worldwide contribute to the constant improvement of our product via the internet and to its internationalisation (it is now available in nearly 70 languages). Mandriva also provides associated off-line services such as consultancy, training and support, alongside on-line services, including the Mandriva Users Club.
Mandriva has its headquarters in Paris and offices in the USA and Brazil.
The company is listed on the Marché Libre of Euronext Paris.

ISIN: FR0004159382
Reuters: MAKE.PA
Number of shares: 5,908,889

Contact Mandriva

François Bancilhon / Thierry Bossut
investors at mandriva dot com
Tél. : +33 (0)1 40 41 00 41