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ABBYY

Company

Information technologies
Since 1989
Russia
Central Federal District of the Russian Federation
Moscow
Otradnaya St., 2B, building 6, business center "Otradny"


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ABBYY (till 1997 BIT Software) - the Russian software developer.

Owners:
Jan David Evgenyevich
PFU Imaging Solutions Europe Limited (PFUL) - 5%
Mint Capital - 10%
Andreyev Sergey Gennadyevich
1250 employees in 2016
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ABBYY is one of the leading world developers of the innovative technologies of optical character recognition, input of forms, the applied linguistic software and the only company in the world having a similar set of own developments.

Structure of the company

ABBYY is a striking example of success of the Russian IT company in the world market. Enter into ABBYY group:

The head office ABBYY which is in Moscow is responsible for product development and coordination of activity of offices of the company in other countries.

Average age of staff of the company – 27 years.

The company on the world map in 2014

Performance Indicators

2018: Growth of revenue of ABBYY Russia for 47%

On March 5, 2019 ABBYY, the developer of solutions in the field of intellectual information processing and linguistics, summed up the work results in 2018. Total income of ABBYY group increased by 15% in dollars. About 90% from them were the share of a corporate segment. Active growth was shown by ABBYY Russia which ruble revenue grew by 47%.

About 60% of income to group were brought by business in USA and To Europe. ABBYY strengthened positions in the markets of intellectual information processing and RPA (Robotic Process Automation). In 2018 the company signed agreements on strategic partnership with UiPath, Blue Prism and NICE Systems according to which the universal platform for intellectual information processing ABBYY FlexiCapture it is integrated with products of these vendors. According to a research KPMG, large business around the world actively increases investments into intellectual automation business processes, implementing solutions based on artificial intelligence, machine learning and RPA. It is expected that the general investments into this direction will grow from $12.4 billion in 2018 to $232 billion by 2025.

Revenue of ABBYY group from implementation of corporate solutions for stream input data grew by 34% – that, by assessment IDC, is 5 times faster in comparison with growth of the world market in 2018. According to IDC, ABBYY saves the leader's positions in this direction. IDC believes that by 2022 the volume of the world market stream data will grow to $1.2 billion. Technologies of ABBYY also continue to license the companies Fujitsu Epson Hewlett Packard Enterprise, RICOH and Xerox.

In Russia projects in the field of intellectual information processing for corporate customers of the financial, power and oil and gas industries became a key factor of growth of business of ABBYY. In 2018 Sberbank implemented an intelligent solution of ABBYY for monitoring of news regarding risks about more than 1000 banks partners in real time, with ABBYY FlexiCapture of VTB by 2.5 times accelerated opening of the account for small and medium business, and NPO Energomash, the leading supplier of rocket engines entering into Roskosmos corporation began to implement corporate search on the basis of technologies of ABBYY. In a year revenue of the corporate direction of ABBYY Russia increased by 63%.

Significant growth was shown by the direction of educational projects. Active cooperation of ABBYY Russia with the educational organizations increased income in this segment of business of the company by 42%. In 2018 using the Monitoring ABBYY platform more than 100 diagnostic works for teachers and school students of the whole country are carried out: written and oral examinations, in presentia and online. Technologies of ABBYY continue to be used for project implementation of the USE and OGE.

«
The artificial intelligence, machine learning, NLP become indivisible element of digital transformation of the companies of the different industries, and 2018 in this respect became sign for the Russian market. Projects of ABBYY proved efficiency of technologies of intellectual information processing. More and more organizations use these solutions for successful management of large volumes of data to raise income, to provide services at qualitatively other level, to attract clients and to accelerate business processes.
Dmitry Shushkin, CEO of ABBYY Russia
»

The Forrester Research notes that 60% of heads of the companies consider complexity of work with unstructured data the main obstacle in a way of digital transformation of business.

According to Tractica company, the size of the market of NLP for a corporate segment will grow for 50.5% annually and by 2025 will be $22.3 billion.

History

2019: Cooperation with Konica Minolta Business Solutions Russia

On May 29, 2019 it became known that Konica Minolta Business Solutions Russia signed the partnership agreement with ABBYY company, the leading developer of solutions in the field of intellectual information processing and linguistics. Konica Minolta will propose solutions for intellectual data processing from a line of corporate products of ABBYY. Read more here.

2017

Growth of revenue - 25%

ABBYY group revenue in 2017 grew by 25%, the company in January, 2018 reported. Abbyy notes that the company showed such growth for the first time for the last five years.

In Russia revenue of the company increased by 12%. The company told TAdviser that in a year distribution of revenue in Russia and abroad significantly did not change: about 10% of revenues of the company are the share of the Russian market.

The main part of income – about 60% – Abbyy brought representations in the USA and Europe. Abbyy specified TAdviser that in the USA revenue of the company grew by 55%, in Europe – for 24%.

«
In recent years we are actively focused on corporate sales of our final solutions. And if in the Russian market we are the recognized leader long ago and implemented tens of large projects in the different industries, in international market we only develop this direction, - told TAdviser in Abbyy. - This year we completed a number of important and big projects in the USA, Europe, Australia and other countries. They also became our key driver of growth in the developing global market of intellectual information processing.
»

The main part of revenue of ABBYY was brought by the markets of the USA and Europe
The main part of revenue of ABBYY was brought by the markets of the USA and Europe

Essential source of income of ABBYY in the world also is licensing of technologies for such companies as Fujitsu, Epson, Hewlett-Packard, Panasonic, Samsung, Xerox, speak in the company.

In the Russian market of ABBYY in 2017 completed tens of large projects in banks, an oil and gas sector, power, the industry, retail and other industries. Among clients of the company – PwC, Modulbank, Tatenergosbyt and others. Besides, Abbyy rebuilt processing of primary documentation in MUEC.

More than 90% of sales of the company were the share of a corporate segment. The CEO of ABBYY in Russia Dmitry Shushkin notes growth of application of systems based on artificial intelligence for business solving of tasks. For example, to make decisions on registration of clients, to estimate risks, to work with requests in technical support, he says.

«
Solutions in the field of intellectual information processing, including using machine learning technologies were in the greatest demand. Intelligent solutions which allow to process and analyze different types of text information automatically are more and more interesting to the companies in a banking, oil and gas sector, power, the industry, retail and other industries, - told TAdviser in Abbyy.
»

Acquisition of Atapi Softver

The ABBYY group, the world developer of solutions in the field of intellectual information processing and linguistics, announced on October 16, 2018 acquisition of the developer of solutions on workflow automation and the analysis of images "Atapi Software". Read more here.

Hit under the Ukrainian sanctions

On May 16, 2017 the president of Ukraine Petro Poroshenko the decree enacted the decision of the National Security and Defense Council (NSDC) on sanctions against the Russian companies and their affiliated enterprises in Ukraine. In total in the sanctions list there were 468 legal entities, from them 81 – connected with the IT field. Among the companies which fell under sanctions there was also Abbyy. Read more here.

Dmitry Shushkin new CEO "ABBYY Russia"

In April, 2017 "ABBYY Russia" Dmitry Shushkin is appointed the CEO of office. The zone of its responsibility includes promotion and sale of all product line of ABBYY in the territory of Russia.

Ulf Persson releases Sergey Andreyev from the CEO's duty

In January, 2017 Abbyy announced appointment of Ulf Persson as the CEO. In this position he replaced Sergey Andreyev heading Abbyy since 1999. Details of staff movement here

2014

Growth of revenue in a corporate segment - 19%

Growth of the company in a corporate segment was 19% in rubles. The previous year this indicator equaled 7%. According to IDC company, in general the Russian software market in 2014 grew in rubles by 8.3%. At the same time ABBYY remains the leader in the Russian segment of software for stream input of data (a "capture and management of images" segment in ESM-systems, according to IDC). About 60% of the market are the share of products of the company.

The company with the best corporate image

On February 3, 2014 it became known that experts from Russia called ABBYY among the Russian companies with the best corporate image. This information contains in the eighth release of the report of Reputation council which since 2009 carries out the Global reputation center Ipsos MORI (Great Britain) and Synovate Comcon (Russia). ABBYY was selected as an example of the innovative Russian company which achieved success in international market. In the report Yandex companies, Kaspersky Lab, Megafon, VTB 24, Alfa-Bank and others are also called.

The research of Ipsos of MORI is based on an interview of experts in corporate communications from the most known companies of Europe, Latin America, Russia, Hong Kong, India and the USA. In 2014 members of Reputation council for the first time called the companies which they consider the best in terms of corporate image. Experts consider the main driver of reputation goods quality or services. Also important criteria are the innovation, openness, attractiveness of the company as the employer and compliance to the declared reputation.

The experts from Russia polled by Synovate Comcon put hi-tech brands for the first place and also especially selected the companies which, having arisen in the local market, could grow to international. Among examples of such companies also ABBYY was called.

Option program for employees

In April, 2014 CEO of ABBYY Sergey Andreyev:

«
At a number of employees the KPI (success indicators), and, depending on that are established, they reached planned or not, in addition to financial remuneration they can acquire the rights to share purchase. In general the volume of this fund at us currently is 15% of a total quantity of actions, and worldwide 150-200 people participate in this program. I think, in reasonable perspective employees will have an opportunity to perform operations with the actions in secondary market.
»

Consolidation of departments of linguistic and mobile products

In June, 2014 ABBYY announced consolidation of the Lingvo directions and mobile products in uniform department. Its area of responsibility includes development, promotion and sale in the world market of multiplatform programs, including an electronic dictionary of ABBYY Lingvo.

The founder of the recruiting ITmozg.ru project Artem Kumpel headed new department. Ekaterina Solntseva who held in ABBYY a position of the director of the department of products for mobile platforms before became the vice president for business development at head office of the company. Alexander Rylov who was the director of the department of linguistic products is appointed the director of the department of educational products.

Consolidation of two departments – Lingvo and mobile – in ABBYY connect with "recent trends of the market on creation of multiplatform programs".

Along with it the company develops also the educational direction, proposing different solutions for schools and universities therefore the department of educational products was also selected, explain in ABBYY. Solutions of the company on this direction are presented by ABBYY TestReader — the automation system of processing of results of testings, examinations, examinations and questioning — which is applied when processing results of school tests in the USE and SFE projects and also special versions of an electronic dictionary of ABBYY Lingvo and the program for studying and storing of the words ABBYY Lingvo Tutor.

Sergey Andreyev, CEO of ABBYY:

If to look at structure of business of ABBYY, then there is a flagman direction connected with sensing technologies of texts. It is realized in several main subdirections. These are shrink-wrapped software products (in particular, Finereader, PDF transformer) and SDK business, i.e. business for developers when they license libraries and thus pay us runtime royalty fees. It is the locomotive of ABBYY. One more big segment which is on take-off now is products of stream input. Solutions in the field actually reorganize business processes of the companies of the different industries which operate with large volumes of documents. An example of use of technologies of stream input is Unified State Exam (USE). The USE would not exist without them. The task is very difficult: in a month it is necessary to process a huge number of forms and that is very important, not to make mistakes, actually the error in processing can lead to the fact that the child will receive the wrong assessment and respectively will not enter to the university. This project very socially important and noticeable. The third direction, is computational linguistics, technology of linguistic analysis of texts Compreno. The amount of the markets to which there can be this technology it is, more, than those markets where the company works today. And in principle it is possible to expect that in the long-term future this technology will be for the company from the financial point of view more significant.[1]

Projects in business market

"The average return of projects of ABBYY in the field of stream input of data is from 3 months to 1 year. Implementing solutions of the company allows more than to reduce costs for document handling by 50% that de facto corresponds to the double growth of efficiency in this direction. For this reason our solutions are demanded and today", – Shushkin Dmitry, the director of corporate projects of ABBYY Russia comments.

ABBYY continues to develop projects in the organizations from the bank, power and oil and gas industries and also from public sector. In 2014 projects in Banks of Russia, including Sberbank, VTB, Alfa-Bank and Raiffeisenbank were continued. Projects in FTS, the State Duma of the Russian Federation, affiliated enterprises of Rosneft, Sibur and other large organizations were implemented.

The transport, logistic companies and retail also show interest in solutions in the field of stream input of data. So, ABBYY implemented projects for Media Markt, "Alphabets of taste", Auto world, Kofemaniya, the Russian Railway.

2013

Growth global revenues for 10%, in Russia for 2%

On the world growth of revenue was about 10%, and in Russia - about 2-3%.

Abbyy crushed the American Nuance in a patent dispute

On August 28, 2013 Abbyy reported that it won court against the American company Nuance which accused her of violation of the rights to patents and also a design of packaging of goods. As Nuance compensation for damage initially demanded over $265 million from the Russian company. The company notes that it several times exceeded the sales volume of products which were suspected of Nuance patent infringement.

As explain in Abbyy, Nuance submitted to it a claim in February, 2008 against Abbyy and Lexmark corporation specializing in development and production of devices for printing and image processing. Nuance accused defendants of violation of the rights to technologies of optical recognition (OCR) and a design of packaging of goods.

Legal procedure began on August 12 in San Francisco and ended on August 23, 2013 with the solution for benefit of Abbyy. According to it, the Russian company should not pay Nuance of any compensations.

The president of ABBYY Sergey Andreyev told TAdviser that initially Nuance used against the company of 8 different patents, but over time part of ABBYY of them disputed, and the American patent office cancelled their issue, and as regards patents of Nuance withdrew the claim therefore to the company there were complaints on 3 patents.

"Two of the remained patents had a priority of 1988 and talked about private implementations, several internal algorithms of recognition which the ABBYY company never used, - Andreyev says. - Actually we from the very beginning in Abbyy FineReader used much more difficult algorithms, as allowed us to win the majority of comparative tests which were carried out by independent test laboratories".

The similar situation in practice of the company arose for the first time, tell in Abbyy, adding that in general, now in the USA there was a practice of frequent complaints on patents, but the absolute majority of such claims arises from patent trolls who buy up patents for further collecting of license fees from producers of programs.

The court with Nuance company is not similar to claims of trolls at all: it is a case when the competitor uses the patents to achieve an output from business of other competitor, Sergey Andreyev noted in a conversation with TAdviser.

Rather possible effects for Abbyy in case of loss in court in the company noted that the probability of a clear victory of the competitor and assignment of penalties, by their estimates, tended to zero.

"Probability of other scenarios of loss was not high too, but we were prepared for them, it could mean higher requirements to profitability for the company", - told TAdviser in Abbyy.

2011

Growth of global sales by 35% and by 45% in Russia

Revenues of the Russian software developer ABBYY in the world at the end of 2011 grew by 35%. In the Russian market increase in revenues of the company reached 46%, having overtaken twice the general growth of the market of software in Russia which was 22%.

Sales growth in product segment for the mass user (an electronic dictionary of Lingvo, the program of text recognition FineReader, etc.) made 28% in comparison with 2010. At the same time sales in Russia of mobile applications - portable versions of desktop products on iOS and Android and independent applications, for example an electronic card holder of Business Card Reader, - in a year increased by 72%.

In 2011 the CEO of ABBYY group Andreyev Sergey said that in the company consider the possibility of an exit to the IPO in reasonable perspective.

"This moment should come after we output the project of computational linguistics in a product stage that can occur within five years", - Sergey Andreyev told.

Grant Skolkovo for 450 million rubles

In February, 2011 the Skolkovo Foundation approved selection of a grant in the amount of 450 million rubles ABBYY company. Money is selected for creation of technology of hands-off processing of texts of Compreno, the general project budget will make 950 million rubles (other investments will be made by Abbyy). Grant from Skolkovo - non-paid also does not assume return of investments, noted in Abbyy. Earlier the president Skolkovo Victor Vekselberg called Abbyy among those companies with which the fund intends to cooperate.

For a work on a grant the separate company "by ABBYY Infopoisk" was created. She will become one of the first residents of the innovation center Skolkovo, Andreyev notes, the staff of the specialists working on Compreno technology and the corresponding intellectual property will be transferred to her. However, so far the new company will function beyond limits Skolkovo because of not readiness of infrastructure of the innovation center.

The most part of works on creation of Compreno technology is already made, Sergey Andreyev says, 300 specialists who spent for the 1 thousand chelovekolt project work on it. The costs which are already enclosed in Compreno, the president of ABBYY estimates approximately at $50 million. Commercial products on the basis of new technology should will appear during two – three years.

The Compreno technology is intended for creation of analysis systems, transfer and search of texts in different languages. Using this technology it will be possible to perform, for example, automatic database compilation of a context for the improved analysis of texts, automatic text summarization of texts, etc.

PFU Ltd redeemed a minority stake in ABBYY

On September 20, 2011 it became known that, the Japanese company PFU limited ("subsidiary" of Fujitsu) redeemed a minority stake in ABBYY company. It is noted that this strategic partnership and further increase in a share of the Japanese shareholder is not planned. The purchased packet makes less than 5% of stocks and could cost, according to experts, the Japanese firm 100 million dollars.

That the producer of electronic dictionaries and recognizers of the text of ABBYY changed structure of shareholders the CEO of the company Sergey Andreyev confirmed. the Japanese company PFU limited redeemed less than 5% of shares in the Russian Abbyy. At the same time the share in the company was transferred not in the additional issue course, and due to reduction of a share of one of shareholders. Who acted as the partner according to the transaction and how many the amount of the offer was, does not reveal. Market experts consider that the cost of the transaction could be 100 million dollars, overall assessment of the company — 2 billion dollars.

After completion of the transaction in structure of shareholders of the company there will be a majority shareholder and the founder David Yang, private equity Mint Capital fund (slightly less than 10%) and the minority shareholder of Fujitsu PFU limited (less than 5%) and also the staff of the company owning options.

As the CEO of ABBYY Sergey Andreyev notes, his company works with Fujitsu PFU limited for a long time and has several joint projects. "In particular, we deliver the software to their multifunction industrial scanners and also we service the joint "cloud" project so purchase of a minority share from PFU limited expresses only their interest in our success. Further increase in a share from their party in our company is not supposed" — Mr. Andreyev comments on a situation.

2010: 30 million polzovatly

According to researches of ABBYY, over 30 million people more than in 130 countries of the world use software products of ABBYY. The number of users of ABBYY FineReader in 2010 exceeded 20 million. 7 million people regularly address an electronic dictionary of ABBYY Lingvo. About 3 million people use other software products of ABBYY, including ABBYY PDF of Transformer and ABBYY Business Card Reader.

With the help of technologies of ABBYY tens of thousands of the organizations annually process more than 9.3 billion pages of documents and forms. Savings from use of technologies of ABBYY in the world make 960 million man-hours or 4.8 billion dollars USA a year.

The technologies developed by specialists of ABBYY are used in the products by the leading players of the market of document flow and data entry: BancTec, BenQ, Captiva, C Technologies, Cardiff Software, Cobra Technologies, DELL, EPSON, EMC2/Documentum, Fujitsu, Freedom Scientific, HP, IKON (USA), IXOS, Kurzweil, Kofax Image Products, Legato Systems, Microtek, Mustek, NewSoft, Neurascript, Notable Solutions, Optika, Panasonic, ReadSoft, Siemens Nixdorf (Germany), Stellent (USA), SWT, SER Solutions, Samsung Electronics, Sumitomo Electric Systems, Toshiba (USA), Umax, Verity (USA) and many other companies.

ABBYY delivers the technologies with scanners and multi-function printers (MFPs) of the largest global manufacturers: BenQ, Canon, Epson, Fujitsu, Konica Minolta, Mustek, Panasonic Communications, PlanOn, Primax, Plustek, Toshiba and Xerox.

Dictionaries and the systems of recognition for smartphones are delivered with the equipment of leaders of the mobile market: Nokia, Samsung, LG, HTC, Pantech and Voxtel.

Clients of ABBYY are among: Administration of the President of the Russian Federation, State Duma of the Russian Federation, Central Bank of the Russian Federation, Sberbank of Russia, Moscow State University of M.B. Lomonosov, Pushkin State Museum of Fine Arts; government organizations of Germany, Australia, Brazil, Lithuania, Slovakia, Malaysia; Nestle companies, PROCTER&GAMBLE and many others.

Among projects of ABBYY in Russia:

  • The integrated software complex for text recognition based on OS Linux, Ministry of Defence of the Russian Federation.
  • The automated input and processing of tax declarations, Federal Tax Service of the Russian Federation.
  • Processing of forms of customs declarations, Federal Customs Service of the Russian Federation.
  • The automated input of documents of the financial and economic reporting, the Federal Tax Police Service of the Russian Federation.
  • Processing and verification of data, Federal Service for Financial Monitoring (Rosfinmonitoring).
  • Processing of forms of provision of pensions, Pension Fund of the Russian Federation.
  • Processing of results of testing of graduates of educational institutions (USE), the Federal center of testing at the Ministry of Education and Science of the Russian Federation.
  • Data processing of annual medical observations of children aged from 1 up to 18 years, the Moscow Department of Healthcare.
  • Input of client payment documents, Sberbank of Russia.
  • Centralized system of electronic archive of client files, Alfa-Bank.
  • Retroconversion of accounting directories, State Public Scientific Technical Library of Russia.
  • Providing the Russian schools with a packet of the basic software within the national Education project – delivery of electronic dictionaries of ABBYY Lingvo and the system of recognition ABBYY FineReader, the Ministry of Education and Science of the Russian Federation, the Ministry of Telecom and Mass Communications of the Russian Federation.
  • Transfer to an electronic format of library archives of the largest libraries of the USA within the Live Search Books project of Microsoft corporation.

2009: The RAS calls Abbyy most the most competitive software developer

According to the results of the research of competitiveness of the Russian IT companies in the domestic and international markets conducted by RAS at the beginning of 2009, ABBYY is called by the most competitive company among software makers. "Competitiveness of domestic manufacturers of information technologies and software".

2006: Beginning of support of department in MIPT

ABBYY supports work of department of "Image understanding and the text processing" created at faculty of innovations and high technologies of the Moscow Institute of Physics and Technology (MIPT) in 2006. Annually about 30 best students of department study free of charge and get a grant from ABBYY. The company promotes that the most talented students remained to work in Russia, but did not leave abroad.

1989: David Yang founds BIT Software company

The company is founded in 1989 in Moscow by the student 4 courses of the Moscow Institute of Physics and Technology (MIPT) David Yang.

Products

For individual use at office or houses:

ABBYY FineReader is the system of recognition of documents;

ABBYY FineReader Online is an online service for recognition and converting of texts

ABBYY Lingvo is electronic dictionaries for the PC and mobile devices;

Transformer ABBYY PDF – the program for conversion of the PDF files to the edited formats and preserving of documents in PDF;

ABBYY Business Card Reader is recognition application of business cards smartphones.

For corporate users:

ABBYY FlexiCapture is the complete solution for automation of stream input of data from forms, questionnaires, forms, declarations;

ABBYY Recognition Server is a server product for process automation of optical image understanding and converting of the PDF files;

ABBYY of FineReader Bank is single solution for the automated data entry from payment orders and other bank documents.

Products for developers:

ABBYY FineReader Engine is tools of the developer for integration of sensing technologies, conversion and converting of documents in applications on Windows platforms, Linux, MacOS and FreeBSD;

ABBYY FlexiCapture Engine is tools of the developer for integration of technologies of stream input of data and document handling into applications on the Windows platform;

ABBYY Mobile OCR SDK is tools of the developer for creation of compact solutions on text recognition on different mobile platforms.

Membership in associations

The ABBYY company consists in The Localization Industry Standarts Association and is a member of society Translation Automation User Society.

Notes