Aveva (LSE:AVV) is a leading provider of 3-D computer-aided design (CAD) and asset lifecycle management software for large infrastructure assets like refineries, naval ships, power plants, floating production storage and offloading vessels. The company’s software is vital to engineers to reduce completion times, procure materials effectively and design the layout of a project. However, weak end markets have impacted Aveva in the short term and the company reported weak interim results. The good news is that over 65% of Aveva’s revenues are stable and recurring, and with a rock-solid balance sheet the company can continue to invest in sales and research and development. We believe Aveva will take market share in the downturn and emerge a stronger and more profitable business.
From Wasatch International Growth (Trades, Portfolio) Fund Q3 2014 Commentary.
