Dassault Systèmes (DS) (Euronext Paris: #13065, DSY.PA) (Paris:DSY) (NASDAQ:DASTY) reported U.S. GAAP and IFRS unaudited financial results for the fourth quarter and year ended December 31, 2008. These results have been reviewed by the Company’s Board of Directors. Commencing with the fiscal year 2009, DS will solely report and publish its financial information in accordance with IFRS as previously disclosed.
Summary Financial Highlights
(unaudited)
- Q4 non-GAAP financial results in line with preliminary announcement
- 2008 GAAP software revenue up 11% and non-GAAP software revenue up 10%, both in constant currencies on strong growth of recurring software revenue
- 2008 GAAP EPS up 11% and non-GAAP EPS up 2%
- Net cash position of €640 million at December 31, 2008
- DS initiates 2009 financial objectives with growth in revenue and earnings
Fourth Quarter and Full Year 2008 Financial Summary |
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In millions of Euros, except per share data | U.S. GAAP | Non-GAAP | ||||||||||
Growth | Growth in cc* | Growth | Growth in cc* | |||||||||
Q4 Total Revenue | 382.9 | 5% | (1%) | 384.4 | 4% | (3%) | ||||||
Q4 Software Revenue | 330.8 | 7% | 1% | 332.3 | 5% | (1%) | ||||||
Q4 EPS | 0.60 | (6%) | 0.66 | (15%) | ||||||||
Q4 Operating Margin | 26.4% | 29.7% | ||||||||||
In millions of Euros, except per share data | U.S. GAAP | Non-GAAP | ||||||||||
Growth | Growth in cc* | Growth | Growth in cc* | |||||||||
FY 2008 Total Revenue | 1,334.8 | 6% | 9% | 1,338.2 | 5% | 8% | ||||||
FY 2008 Software Revenue | 1,154.4 | 9% | 11% | 1,157.8 | 7% | 10% | ||||||
FY 2008 EPS | 1.66 | 11% | 2.02 | 2% | ||||||||
FY 2008 Operating Margin | 20.4% | 25.6% |
Bernard Charlès, Dassault Systèmes President and Chief Executive Officer, commented, “Looking back at 2008, despite a disappointing fourth quarter caused by the economic crisis, Dassault Systèmes ended the fiscal year with growth in revenue and earnings, a high level of recurring software revenue and a strong balance sheet. Thanks to our strategic investments in our product portfolio and sales channels, DS gained one point of market share in 2008.
“We expect 2009 to be a difficult global economic environment in which to operate, but we move into the year with an expanded addressable market, strengthened sales channels, and a richer product portfolio to serve our customers. Moreover, our new Version 6 collaborative platform enables us to bring more flexibility and value to our customers through further coverage of industry processes. We are pleased that a number of companies, across consumer goods, energy, life sciences, high tech, as well as aerospace and automotive, have become strategic partners with DS as we work closely with them to leverage 3D PLM for sustainable product development.”
Fourth Quarter 2008 Financial Highlights |
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In millions of Euros | U.S. GAAP | Non-GAAP | ||||||||||
Q4 2008 | Q4 2007 | Growth in cc* | Q4 2008 | Q4 2007 | Growth in cc* | |||||||
Total Revenue | 382.9 | 363.1 | (1%) | 384.4 | 371.1 | (3%) | ||||||
Software Revenue | 330.8 | 308.3 | 1% | 332.3 | 316.3 | (1%) | ||||||
Services and other revenue | 52.1 | 54.8 | (11%) | 52.1 | 54.8 | (11%) | ||||||
PLM software revenue | 255.8 | 241.3 | 0% | 257.3 | 249.3 | (3%) | ||||||
Mainstream 3D software revenue | 75.0 | 67.0 | 4% | 75.0 | 67.0 | 4% | ||||||
Americas | 118.9 | 106.0 | 2% | 119.2 | 107.8 | 0% | ||||||
Europe | 178.3 | 181.4 | (2%) | 178.8 | 186.2 | (4%) | ||||||
Asia | 85.7 | 75.7 | (3%) | 86.4 | 77.1 | (4%) |
Overall, fourth quarter financial performance reflected an increasingly difficult macroeconomic environment at year-end, leading to contract deferrals and resulting in lower revenue than the Company’s objective, affecting both margin and earnings results. The Company noted, however, that subscription renewals continued at a good level. Currency exchange rate changes during the quarter had a net beneficial impact on reported revenue, margin and earnings.
- GAAP and non-GAAP total revenue increased on a reported basis, but decreased 1% and 3%, respectively, in constant currencies.
- GAAP and non-GAAP software revenue both increased on a reported basis. In constant currencies GAAP software revenue increased 1%. Non-GAAP software revenue decreased 1% reflecting non-GAAP recurring software revenue growth of 17% offset by new licenses revenue decrease of 22% (all figures are in constant currencies). Non-GAAP recurring software revenue accounted for 64% of total non-GAAP software revenue in the quarter.
- GAAP PLM software revenue was flat and non-GAAP PLM software revenue decreased 3%, both figures in constant currencies. In non-GAAP and on a constant currencies basis, CATIA software revenue decreased 7%, ENOVIA software revenue decreased 3%, and SIMULIA software revenue increased double-digits.
- Mainstream 3D GAAP and non-GAAP software revenue increased 4% in constant currencies on growth in SolidWorks installed base recurring revenue and higher sales of SolidWorks product data management and simulation software.
- GAAP services and other revenue decreased 11% in constant currencies, principally reflecting the DSF divestiture at the end of the 2008 second quarter and winding down of certain historical channel management activities.
- GAAP operating margin was 26.4% compared to 28.9% in the year-ago quarter. Non-GAAP operating margin decreased to 29.7% compared to 34.9% in the 2007 fourth quarter, reflecting the lower than anticipated revenue results.
- GAAP earnings per diluted share decreased 6% to €0.60. Non-GAAP earnings per diluted share decreased 15% to €0.66 primarily reflecting a decrease in non-GAAP operating income of 12%.
Full Year 2008 Financial Highlights |
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In millions of Euros | U.S. GAAP | Non-GAAP | ||||||||||
FY 2008 | FY 2007 | Growth in cc* | FY 2008 | FY 2007 | Growth in cc* | |||||||
Total Revenue | 1,334.8 | 1,258.8 | 9% | 1,338.2 | 1,275.9 | 8% | ||||||
Software Revenue | 1,154.4 | 1,063.3 | 11% | 1,157.8 | 1,080.4 | 10% | ||||||
Services and other revenue | 180.4 | 195.5 | (5%) | 180.4 | 195.5 | (5%) | ||||||
PLM software revenue | 878.2 | 811.0 | 11% | 881.6 | 825.4 | 10% | ||||||
Mainstream 3D software revenue | 276.2 | 252.3 | 13% | 276.2 | 255.0 | 11% | ||||||
Americas | 410.1 | 391.8 | 12% | 411.9 | 397.9 | 11% | ||||||
Europe | 620.2 | 575.9 | 8% | 621.0 | 584.3 | 6% | ||||||
Asia | 304.5 | 291.1 | 7% | 305.3 | 293.7 | 6% | ||||||
*in constant currencies |
- GAAP and non-GAAP total revenue increased 9% and 8%, respectively, in constant currencies.
- GAAP and non-GAAP revenue grew approximately 40% in constant currencies in the faster growing markets comprised primarily of China, India, Brazil, Eastern Europe and Russia.
- GAAP software revenue increased 11% in constant currencies and represented 86% of total revenue. Non-GAAP software revenue increased 10% on non-GAAP recurring software revenue growth of 18% offset in part by new licenses revenue decrease of 2% (all figures in constant currencies). Non-GAAP recurring software revenue represented 64% of total non-GAAP software revenue during 2008.
-
GAAP PLM software revenue increased 11% in constant currencies.
Non-GAAP PLM software revenue increased 10% in constant currencies.
- CATIA non-GAAP software revenue increased 10% in constant currencies benefiting from growth in subscription and higher activity in both PLM sales channels.
- ENOVIA non-GAAP software revenue increased 7% in constant currencies and reflected growth with customers across a diversified group of industries.
- SIMULIA non-GAAP software revenue increased over 20% in constant currencies, primarily reflecting strong growth within the customer base across all geographic regions and market share gains.
- GAAP Mainstream 3D software revenue increased 13% in constant currencies. Non-GAAP Mainstream 3D software revenue increased 11% in constant currencies on growth in SolidWorks subscription revenue, 49,472 new seats and double-digit growth of SolidWorks product data management and analysis software.
- Services and other revenue trends during 2008 primarily reflected the changing scope of this line item. For 2008, GAAP services and other revenue, representing 14% of total revenue, decreased 5% in constant currencies reflecting the DSF divestiture and winding down of certain historical channel management activities and related fee revenues. However, DS PLM consulting services revenue posted year-over-year growth in constant currencies.
- GAAP operating margin was 20.4% for 2008. Non-GAAP operating margin was 25.6%, decreasing in comparison to 2007 due to the impact of the economic crisis at the end of the year.
- Financial revenue and other totaled €8.9 million, compared to €7.3 million in 2007. 2008 financial revenue and other were principally comprised of net interest income of €13.9 million and net exchange losses of €6.9 million.
- GAAP earnings per diluted share increased 11%. Non-GAAP earnings per diluted share increased 2% principally reflecting an increase in non-GAAP operating income of 2%.
-
2008 new business activity by industry included the following
companies among others:
- Aerospace: Bell Helicopter, Boeing, Chengdu Aircraft, EADS, Parker Hannifin, Piaggio Aero;
- Consumer and Consumer Packaged Goods: Barilla, Pacific Brands, Procter & Gamble;
- High Tech: Lenovo, Leviton, L-3 Communications, Nikon, Nokia Siemens Network, Panasonic, Toshiba;
- Business Services: Cambric, TUV Rheinland, American Bureau of Shipping;
- Industrial Equipment: Komatsu, Sanyo Machine Works, Stara S.A.;
- Energy and Construction: Arup, OKG, Skanska;
- Automotive: EDAG, Johnson Controls, Tenpaku. R Corporation.
Cash Flow and Other Financial Highlights
GAAP net operating cash flow was €306.5 million for the year ended December 31, 2008.
During 2008 DS paid cash dividends and repurchased shares totalling €132.7 million. Cash dividends paid amounted to €53.7 million in total. The Company repurchased 2,261,986 shares during 2008 for an aggregate investment of €79.0 million.
At December 31, 2008, cash and short-term investments totaled €840.4 million and long-term debt was €200.7 million.
IFRS Summary Financial Information
The Company noted that the fiscal year reporting above for U.S. GAAP and non-GAAP total revenue, software revenue, services and other revenue as well as discussions by geographic regions, market segments and major brands would be similar under IFRS and non-IFRS (“non-IFRS” were referred to as “adjusted IFRS” in DS previous earnings announcements as well as in the Document de référence for the year ended December 31, 2007 filed with the Autorité des marchés financiers on April 4, 2008).
With respect to fiscal year operating expenses, each of the line item categories and amounts are the same under both U.S. GAAP and IFRS with the exception of the line item amortization of intangible assets which totals €44.9 million under U.S. GAAP and €42.9 million under IFRS. This difference and its related tax effects account almost entirely for the fiscal year differences in IFRS operating income, operating margin and earnings per share in comparison to U.S. GAAP.
With respect to the fiscal year, the non-IFRS operating income, operating margin and earnings per diluted share figures are identical to their respective non-GAAP figures.
For the 2008 fourth quarter IFRS total revenue was €382.9 million and non-IFRS total revenue was €384.4 million. IFRS total software revenue was €330.8 million and non-IFRS software revenue was €332.3 million. IFRS services and other revenue were €52.1 million. IFRS operating margin was 21.3% and the non-IFRS operating margin was 29.7%. IFRS earnings per diluted share was €0.47 and non-IFRS earnings per diluted share was €0.66.
For fiscal year 2008, IFRS total revenue was €1.33 billion and non-IFRS total revenue was €1.34 billion. IFRS total software revenue was €1.15 billion and non-IFRS software revenue was €1.16 billion. IFRS services and other revenue were €180.4 million. IFRS operating margin was 20.5% and non-IFRS operating margin was 25.6%. IFRS earnings per diluted share was €1.68 and non-IFRS earnings per diluted share was €2.02.
The tables in the Appendix of this press release set forth the Company’s financial results as prepared under IFRS and provide a summary reconciliation of the Company’s financial results as presented under U.S. GAAP to its financial results as presented under IFRS and a summary reconciliation of its supplemental non-GAAP financial information to its supplemental non-IFRS financial information.
Key Business and Corporate Highlights
DS launched V6R2009x, the latest release of its new platform. From leveraging online communities, such as 3DVIA.com, to integrated requirement, functional, logical, and physical definitions of products, the V6 platform is harnessing the collective intelligence of all participants in a product’s lifecycle. This new release delivers important industry-specific solutions for customers in the consumer goods, high-tech, industrial equipment, life sciences, automotive, and aerospace industries.
Bell Helicopter standardizes on DS’ PLM Solutions to maximize efficiency and improve compliance efforts. Bell Helicopter has embarked on a multi-year, multiple stage upgrade of its PLM and CAD/CAM/CAE/CAI systems using ENOVIA V6 and its pre-existing CATIA V5 implementation. Using Dassault Systèmes’ solutions as its PLM foundation, Bell Helicopter will support its unprecedented growth by using the ENOVIA Aerospace and Defense Accelerator™ for Program Management to meet regulatory requirements while also standardizing a number of key business processes to enable employees and suppliers across the globe to securely and more efficiently share updated product information.
EADS chooses DS for collaborative 3D design and manufacturing to help reshape the future of aerospace and defense products and services. EADS’ goal is to integrate Dassault Systèmes’ tools such as product design (CATIA), digital manufacturing (DELMIA) and collaborative solutions (ENOVIA-VPM) into EADS’ PLM processes as key enablers for excellence and harmonization.
STX Shipbuilding, one of the world’s leading shipbuilding companies, has implemented DS’ ENOVIA solution as its enterprise-wide PLM backbone. The deployment of the ENOVIA backbone has enabled STX Shipbuilding to reduce engineering work by 50% and production work by 30%. The company has also shortened lead times by providing customers with a broad range of ship modeling information, ensuring more accurate plan development and helping to eliminate work loss issues.
Chanel and DS announced the formation of a strategic partnership to drive scientific innovation. By combining Chanel’s expertise in cosmetics and Dassault Systèmes’ expertise in 3D technologies and virtualization, the partners aim to develop unique concepts and explore new territories in life sciences.
Gantry Group survey finds that Dassault Systèmes’ ENOVIA helps semiconductor companies meet industry challenges by managing multi-site design, improving productivity and maximizing IP re-use. A white paper from the Gantry Group found that semiconductor companies using ENOVIA PLM solutions reported a number of clear benefits including a 74% increase in multi-site designs, a 46% savings in design engineering time and a 32% increase in product quality.
Other Corporate Information
On October 16, 2008, Dassault Systèmes’ voluntary delisting from Nasdaq was completed. On January 15, 2009, Dassault Systèmes’ deregistration and termination of its reporting obligations under the U.S. SEC Exchange Act became effective. The Company does not plan to publish a Form 20-F for the fiscal year ended December 31, 2008; however it will be providing an English translation of its 2008 Document de référence, when filed with the French “Autorité des marchés financiers”.
Dassault Systèmes continues to maintain its American Depository Receipt (ADR) program, which will enable investors to retain their ADRs and facilitate trading on the U.S. Over-The-Counter (OTC) market.
Dassault Systèmes will continue to publish its financial reports, statements and press releases in English as well as information for investors on its website ( www.3ds.com) pursuant to section 12g3-2(b) of the U.S. Securities Exchange Act.
Business Outlook
Thibault de Tersant, Senior Executive Vice President and CFO, commented, “At the end of the third quarter we were well on track to achieve our revenue and margin objectives for 2008, but we finally came in below them for the full year due to the significant slowdown in the macroeconomic environment which impacted us at the end of the fourth quarter. Nonetheless, thanks to our recurring software revenue and services and other revenue, which in combination represented about 69% of our total revenue in 2008, we were able to deliver over 8% growth in total revenue on a constant currency basis for the full year.
“For 2009, our initial objectives have been developed with the key assumption that market conditions throughout the year remain quite similar to what we experienced during the 2008 fourth quarter. Based upon this assumption, we have set an initial 2009 non-IFRS revenue growth objective range of about 1% to 3% in constant currencies. Incorporating this revenue objective with our productivity and cost initiatives, as set out below, leads us to target a stable non-IFRS operating margin in comparison to 2008 at about 25.5% and growth in non-IFRS earnings per share with an objective range of about €2.02 to €2.12. We will revise our initial objectives as warranted by changes in market conditions.
“From a cost management perspective, we undertook several restructuring initiatives during 2008. On top of this, we are moving ahead with new cost and productivity optimization measures in 2009. In combination, these programs will bring positive effects progressively during 2009 and yield further savings as we move into 2010.
“In summary, we expect 2009 to be a challenging year, but we believe our focus on operational efficiencies will both help us during the downturn and better position DS when market conditions improve.”
The Company’s objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below. The Company’s initial objectives are the following:
- First quarter 2009 non-IFRS total revenue objective of about €325 to €335 million and non-IFRS EPS of about €0.36 to €0.42;
- 2009 non-IFRS revenue growth objective range of about 1% to 3% in constant currencies (€1.405 to €1.425 billion based upon the 2009 currency exchange rate assumptions below.)
- 2009 non-IFRS operating margin of about 25.5%;
- 2009 non-IFRS EPS range of about €2.02 to €2.12;
- Objectives are based upon exchange rate assumptions for the 2009 first quarter of US$1.30 per €1.00 and JPY 125 per €1.00 and a full year average of US$1.38 per €1.00 and JPY 129 per €1.00.
The non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2009 currency exchange rates above: deferred revenue write-downs estimated at approximately €1.4 million for 2009; share-based compensation expense estimated at approximately €22 million for 2009 and amortization of acquired intangibles estimated at approximately €40 million for 2009. The above objectives do not include any impact from other operating income and expense, net principally comprised of restructuring expenses. These estimates also do not include any new stock option or share grants, or any new acquisitions or restructurings completed after February 11, 2009.
Webcast and Conference Call Information
Dassault Systèmes will host a webcast and a conference call today, Wednesday, February 11, 2009. Management will host a webcast at 10:00 AM London time/11:00 AM CET time and will then host the conference call at 2:00 PM London time/3:00 PM CET/ 9:00 AM New York time. The webcast and conference call will be available via the Internet by accessing http://www.3ds.com/company/finance/. Please go to the website at least fifteen minutes prior to the webcast or conference call to register, download and install any necessary audio software.
The webcast and conference call will be archived for 30 days. Additional investor information can be accessed at http://www.3ds.com/company/finance/ or by calling Dassault Systèmes’ Investor Relations at 33.1.61.62.69.24.
Forward-looking Information
Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Company’s non-IFRS financial performance objectives, are forward-looking statements.
Such forward-looking statements are based on DS management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors. In preparing such forward-looking statements, the Company has in particular assumed an average U.S. dollar to euro exchange rate of US$1.38 per €1.00 and an average Japanese yen to euro exchange rate of JPY129 to €1.00 for the 2009 full year; however, currency values fluctuate, and the Company’s results of operations may be significantly affected by changes in exchange rates. The Company has tried to factor in the potential impact of the current global economic crisis on its 2009 first quarter and full year objectives, but conditions could worsen. Further the Company has assumed that its increased responsibility for both indirect and direct PLM sales channels, and the resulting commercial and management challenges, will not cause it to incur substantial unanticipated costs and inefficiencies. The Company’s actual results or performance may also be materially negatively affected by the current global economic crisis, difficulties or adverse changes affecting its partners or its relationships with its partners, including the Company’s longstanding, strategic partner, IBM; new product developments and technological changes; errors or defects in its products; growth in market share by its competitors; and the realization of any risks related to the integration of any newly acquired company and internal reorganizations. Unfavorable changes in any of the above or other factors described in the Company’s regulatory reports, including the Document de référence, as filed with the French “Autorité des marchés financiers” (AMF) on April 4, 2008, could materially affect the Company’s financial position or results of operations.
Non-GAAP and Non-IFRS Financial Information
Readers are cautioned that the supplemental non-GAAP and non-IFRS (previously referred to as “adjusted IFRS”) information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP or IFRS measurements. Also, the Company’s supplemental non-GAAP and non-IFRS financial information may not be comparable to similarly titled non-GAAP or non-IFRS measures used by other companies. Further specific limitations for individual non-GAAP and non-IFRS measures, and the reasons for presenting non-GAAP and non-IFRS financial information, are set forth respectively in the Company’s annual report for the year ended December 31, 2007 on Form 20-F filed with the SEC on April 4, 2008 (with respect to non-GAAP measures), in the Company’s 2007 Document de référence filed with the AMF on April 4, 2008 (with respect to non-IFRS measures) and in the paragraph below.
In addition to the individual non-GAAP and non-IFRS measures described in the Company’s most recent Form 20-F and non-IFRS measures described in the Company’s 2007 Document de référence, the Company’s unaudited U.S. GAAP and IFRS 2008 financial statements reflect other operating income and expense, net comprised of income and expenses related to the relocation of the Company’s corporate headquarters and restructuring expenses. In the supplemental non-GAAP and non-IFRS financial information, the Company excludes other operating income and expense effects because of their infrequent or non-recurring nature. As a result, the Company believes that its supplemental non-GAAP and non-IFRS financial information helps investors better understand the current trends in its operating performance. However, other operating income and expense, net are components of the Company’s income and expenses for 2008 and by excluding them the supplemental non-GAAP and non-IFRS financial information understates the net impact to the Company’s net income in 2008. Other operating income and expense, net are generally not recurring, and the Company does not expect to incur other operating income and expense, net as part of its normal business on a regular basis.
To compensate for these limitations, the supplemental non-GAAP and non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with U.S. GAAP and IFRS.
In the tables accompanying this press release the Company sets forth its supplemental non-GAAP and non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, the expenses for the amortization of acquired intangible assets and stock-based compensation expense (in each case, as explained respectively in the Company’s 2007 Form 20-F for non-GAAP figures and in the Company’s 2007 Document de référence for non-IFRS figures), as well as other operating income and expense, net (as explained above). The tables also set forth the most comparable GAAP and IFRS financial measure and reconciliations of this information with non-GAAP and non-IFRS information.
Information in Constant Currencies
When the Company believes it would be helpful for understanding trends in its business, the Company provides percentage increases or decreases in its revenue (in both U.S. GAAP and IFRS as well as non-GAAP and non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed herein "in constant currencies", the results of the "current" period have first been recalculated using the average exchange rates of the comparable period in the preceding year, and then compared with the results of the comparable period in the preceding year.
About Dassault Systèmes:
As a world leader in 3D and Product Lifecycle Management (PLM) solutions, Dassault Systèmes brings value to more than 100,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systèmes develops and markets PLM application software and services that support industrial processes and provide a 3D vision of the entire lifecycle of products from conception to maintenance to recycling. The Dassault Systèmes portfolio consists of CATIA for designing the virtual product - SolidWorks for 3D mechanical design - DELMIA for virtual production - SIMULIA for virtual testing - ENOVIA for global collaborative lifecycle management, and 3DVIA for online 3D lifelike experiences. Dassault Systèmes’ shares are listed on Euronext Paris (#13065, DSY.PA) and Dassault Systèmes’ ADRs may be traded on the US Over-The-Counter (OTC) market (DASTY). For more information, visit http://www.3ds.com
CATIA, DELMIA, ENOVIA, SIMULIA, SolidWorks and 3DVIA are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.
(Tables to follow)
TABLE OF CONTENTS
U.S. GAAP:
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cashflow statements
Supplemental non-GAAP Financial Information:
U.S. GAAP – non-GAAP reconciliation (Q4 2008)
U.S. GAAP – non-GAAP reconciliation (FY 2008)
Non-GAAP key figures
IFRS:
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cashflow statements
Supplemental non-IFRS Financial Information:
IFRS – non-IFRS reconciliation (Q4 2008)
IFRS – non-IFRS reconciliation (FY 2008)
U.S. GAAP and IFRS:
U.S. GAAP – IFRS summary reconciliation
Supplemental non-GAAP – non-IFRS summary reconciliation
DASSAULT SYSTEMES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (U.S. GAAP) (in millions of Euros, except per share data, unaudited) |
||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | December 31, | December 31, | |||||
2008 | 2007 | 2008 | 2007 | |||||
New licenses revenue | 115.2 | 132.7 | 407.6 | 417.5 | ||||
Periodic licenses, maintenance and product development revenue | 215.6 | 175.6 | 746.8 | 645.8 | ||||
Software revenue | 330.8 | 308.3 | 1,154.4 | 1,063.3 | ||||
Services and other revenue | 52.1 | 54.8 | 180.4 | 195.5 | ||||
Total Revenue | € 382.9 | € 363.1 | € 1,334.8 | € 1,258.8 | ||||
Cost of software revenue (excluding amortization of acquired intangibles) | 15.1 | 11.2 | 56.8 | 53.0 | ||||
Cost of services and other revenue | 43.1 | 39.2 | 155.2 | 156.3 | ||||
Research and development | 81.2 | 74.6 | 309.6 | 302.9 | ||||
Marketing and sales | 108.3 | 95.1 | 387.3 | 350.0 | ||||
General and administrative | 30.8 | 26.7 | 109.3 | 97.1 | ||||
Amortization of acquired intangibles | 12.0 | 11.4 | 44.9 | 46.8 | ||||
Other operating income and expense, net | (8.7) | 0.0 | (0.2) | 0.0 | ||||
Total Operating Expenses | € 281.8 | € 258.2 | € 1,062.9 | € 1,006.1 | ||||
Operating Income | € 101.1 | € 104.9 | € 271.9 | € 252.7 | ||||
Financial revenue and other, net | (1.2) | (0.7) | 8.9 | 7.3 | ||||
Income before income taxes | 99.9 | 104.2 | 280.8 | 260.0 | ||||
Income tax expense | (28.1) | (27.5) | (82.4) | (81.2) | ||||
Minority interest | (0.2) | (0.1) | (0.4) | (0.3) | ||||
Net Income | € 71.6 | € 76.6 | € 198.0 | € 178.5 | ||||
Basic net income per share | 0.61 | 0.65 | 1.69 | 1.53 | ||||
Diluted net income per share | € 0.60 | € 0.64 | € 1.66 | € 1.49 | ||||
Basic weighted average shares outstanding (in millions) | 117.7 | 117.2 | 117.3 | 116.4 | ||||
Diluted weighted average shares outstanding (in millions) | 119.1 | 120.6 | 119.3 | 119.6 | ||||
U.S. GAAP revenue variation as reported and in constant currencies |
||||||||
Three months ended December 31, 2008 | Twelve months ended December 31, 2008 | |||||||
Variation* | Variation in cc** | Variation* | Variation in cc** | |||||
GAAP Revenue | 5% | (1%) | 6% | 9% | ||||
GAAP Revenue by activity | ||||||||
Software Revenue | 7% | 1% | 9% | 11% | ||||
Services and other Revenue | (5%) | (11%) | (8%) | (5%) | ||||
GAAP Software Revenue by product line | ||||||||
PLM software revenue | 6% | 0% | 8% | 11% | ||||
of which CATIA software revenue | 4% | (2%) | 9% | 12% | ||||
of which ENOVIA software revenue | 6% | (2%) | 7% | 10% | ||||
Mainstream 3D software revenue | 12% | 4% | 9% | 13% | ||||
GAAP Revenue by geography | ||||||||
Americas | 12% | 2% | 5% | 12% | ||||
Europe | (2%) | (2%) | 8% | 8% | ||||
Asia | 13% | (3%) | 5% | 7% | ||||
Variation compared to the same period in the prior year. ** In constant currencies. |
DASSAULT SYSTEMES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. GAAP) (in millions of Euros, unaudited) |
||||
December 31, | December 31, | |||
2008 | 2007 | |||
ASSETS | ||||
Cash and short-term investments | 840.4 | 626.6 | ||
Accounts receivable, net | 329.4 | 320.0 | ||
Other current assets | 162.5 | 114.1 | ||
Total current assets | 1,332.3 | 1,060.7 | ||
Property and equipment, net | 69.3 | 61.1 | ||
Intangible assets, net | 816.2 | 811.3 | ||
Other non current assets | 17.0 | 18.0 | ||
Total Assets | € 2,234.8 | € 1,951.1 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | 70.1 | 48.4 | ||
Unearned revenues | 250.7 | 207.5 | ||
Other current liabilities | 203.1 | 189.5 | ||
Total current liabilities | 523.9 | 445.4 | ||
Long-term debt | 200.7 | 202.9 | ||
Other non current obligations | 126.7 | 107.0 | ||
Total long-term liabilities | 327.4 | 309.9 | ||
Shareholders' equity | 1,383.5 | 1,195.8 | ||
Total Liabilities and Shareholders' equity | € 2,234.8 | € 1,951.1 |
DASSAULT SYSTEMES CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (U.S. GAAP) (in millions of Euros, unaudited) |
||||||||||||
Three months ended | Twelve months ended | |||||||||||
December 31, 2008 | December 31, 2007 | Variation | December 31, 2008 | December 31, 2007 | Variation | |||||||
Net Income | 71.6 | 76.6 | (5.0) | 198.0 | 178.5 | 19.5 | ||||||
Depreciation and Amortization of Property, Plant & Equipment | 6.0 | 4.9 | 1.1 | 23.0 | 24.7 | (1.7) | ||||||
Amortization of intangible assets | 13.3 | 13.4 | (0.1) | 49.5 | 50.5 | (1.0) | ||||||
Other Non Cash P&L Items | 29.7 | 44.6 | (14.9) | 29.9 | 40.4 | (10.5) | ||||||
Changes in working capital | (75.7) | (68.6) | (7.1) | 6.1 | 16.9 | (10.8) | ||||||
Net Cash provided by operating activities | 44.9 | 70.9 | (26.0) | 306.5 | 311.0 | (4.5) | ||||||
Acquisition of assets and equity, net of cash acquired | (16.0) | (15.5) | (0.5) | (82.7) | (105.8) | 23.1 | ||||||
Sale of assets and equity | 0.1 | 0.2 | (0.1) | 36.7 | 0.3 | 36.4 | ||||||
Loans and others | 0.3 | 0.2 | 0.1 | 0.0 | (0.3) | 0.3 | ||||||
Net Cash provided by (used in) investing activities | (15.6) | (15.1) | (0.5) | (46.0) | (105.8) | 59.8 | ||||||
Borrowings | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||
Share repurchase | (44.0) | 0.0 | (44.0) | (79.0) | 0.0 | (79.0) | ||||||
DS Stock Option and preferred Stock Exercise | 16.4 | 10.1 | 6.3 | 59.2 | 48.0 | 11.2 | ||||||
Cash dividend paid | 0.0 | 0.0 | 0.0 | (53.7) | (50.8) | (2.9) | ||||||
Payments on capital lease obligations | 0.0 | 0.0 | 0.0 | 0.0 | (0.4) | 0.4 | ||||||
Net Cash provided by (used in) financing activities (1) | (27.6) | 10.1 | (37.7) | (73.5) | (3.2) | (70.3) | ||||||
Effect of exchange rate changes on
treasury (2) |
9.1 | (10.4) | 19.5 | 26.8 | (34.6) | 61.4 | ||||||
Increase in treasury (2) | 10.8 | 55.5 | (44.7) | 213.8 | 167.4 | 46.4 | ||||||
Treasury (2) at beginning of period | 829.6 | 571.1 | 626.6 | 459.2 | ||||||||
Treasury (2) at end of period | 840.4 | 626.6 | 840.4 | 626.6 | ||||||||
(1) Excluding changes in short-term investments. (2) Treasury includes cash, cash equivalents and short-term investments. |
DASSAULT SYSTEMES
SUPPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. GAAP – NON-GAAP RECONCILIATION
(in millions of Euros, except per share data, unaudited)
Readers are cautioned that the supplemental non-GAAP information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, the Company’s supplemental non-GAAP financial information may not be comparable to similarly titled non-GAAP measures used by other companies. Further specific limitations for individual non-GAAP measures, and the reasons for presenting non-GAAP financial information, are set forth in today’s press release with respect to other operating income and expense, net and in the Company’s annual report for the year ended December 31, 2007 on Form 20-F filed with the SEC on April 4, 2008 for the other non-GAAP financial measures. To compensate for these limitations, the supplemental non-GAAP financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with U.S. GAAP.
In millions of Euros, except per share data and percentages |
Three months ended December 31, | Variation | ||||||||||||||
2008 |
Adjustment |
2008 | 2007 |
Adjustment |
2007 |
U.S. GAAP |
Non-GAAP |
|||||||||
U.S. GAAP |
(1) |
non-GAAP | U.S. GAAP |
(1) |
non-GAAP |
(2) |
||||||||||
Total Revenue | € 382.9 | 1.5 | € 384.4 | € 363.1 | 8.0 | € 371.1 | 5% | 4% | ||||||||
Total Revenue breakdown by activity | ||||||||||||||||
Software revenue | 330.8 | 1.5 | 332.3 | 308.3 | 8.0 | 316.3 | 7% | 5% | ||||||||
New Licenses | 115.2 | 132.7 | 6.0 | 138.7 | (13%) | |||||||||||
Product Development | 4.1 | 6.8 | -- | |||||||||||||
Periodic Licenses and Maintenance | 211.5 | 1.5 | 213.0 | 168.8 | 2.0 | 170.8 | 25% | 25% | ||||||||
Recurring portion of Software revenue | 64% | 64% | 55% | 54% | ||||||||||||
Services and other revenue | 52.1 | 54.8 | (5%) | |||||||||||||
Total Software Revenue breakdown by product line | ||||||||||||||||
PLM software revenue | 255.8 | 1.5 | 257.3 | 241.3 | 8.0 | 249.3 | 6% | 3% | ||||||||
of which CATIA software revenue | 150.7 | 145.2 | 7.4 | 152.6 | 4% | (1%) | ||||||||||
of which ENOVIA software revenue | 53.5 | 0.2 | 53.7 | 50.3 | 0.6 | 50.9 | 6% | 6% | ||||||||
Mainstream 3D software revenue | 75.0 | 67.0 | 12% | |||||||||||||
Total Revenue breakdown by geography | ||||||||||||||||
Americas | 118.9 | 0.3 | 119.2 | 106.0 | 1.8 | 107.8 | 12% | 11% | ||||||||
Europe | 178.3 | 0.5 | 178.8 | 181.4 | 4.8 | 186.2 | (2%) | (4%) | ||||||||
Asia | 85.7 | 0.7 | 86.4 | 75.7 | 1.4 | 77.1 | 13% | 12% | ||||||||
Total Operating Expenses | € 281.8 | (11.5) | € 270.3 | € 258.2 | (16.5) | € 241.7 | 9% | 12% | ||||||||
Stock-based compensation expense | 8.2 | (8.2) | - | 5.1 | (5.1) | - | -- | -- | ||||||||
Amortization of acquired intangibles | 12.0 | (12.0) | - | 11.4 | (11.4) | - | -- | -- | ||||||||
Other operating income and expense, net | (8.7) | 8.7 | - | 0.0 | -- | -- | ||||||||||
Operating Income | € 101.1 | 13.0 | € 114.1 | € 104.9 | 24.5 | € 129.4 | (4%) | (12%) | ||||||||
Operating Margin | 26.4% | 29.7% | 28.9% | 34.9% | ||||||||||||
Income before Income Taxes | 99.9 | 13.0 | 112.9 | 104.2 | 24.5 | 128.7 | (4%) | (12%) | ||||||||
Income tax expense | (28.1) | (6.3) | (34.4) | (27.5) | (6.9) | (34.4) | -- | -- | ||||||||
Income tax effect of adjustments above | 6.3 | (6.3) | - | 6.9 | (6.9) | - | -- | -- | ||||||||
Minority interest | (0.2) | (0.1) | -- | |||||||||||||
Net Income | € 71.6 | 6.7 | € 78.3 | € 76.6 | 17.6 | € 94.2 | (7%) | (17%) | ||||||||
Diluted Net Income Per Share (3) | € 0.60 | 0.06 | € 0.66 | € 0.64 | 0.14 | € 0.78 | (6%) | (15%) | ||||||||
(1) In the reconciliation schedule above, (i) all non-GAAP adjustments to GAAP revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-GAAP adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net and stock-based compensation expense (as detailed below); and (iii) all non-GAAP adjustments to GAAP net income data reflect the combined effect of these non-GAAP adjustments. |
||||||||||||||||
Three months ended December 31, | ||||||||||||||||
In millions of Euros |
2008 U.S.
|
Adjustment |
2008 non-
|
2007 U.S.
|
Adjustment |
2007
|
||||||||||
Cost of services and other revenue | 43.1 | (0.3) | 42.8 | 39.2 | (0.2) | 39.0 | ||||||||||
Research and development | 81.2 | (3.9) | 77.3 | 74.6 | (2.9) | 71.7 | ||||||||||
Marketing and sales | 108.3 | (1.5) | 106.8 | 95.1 | (1.1) | 94.0 | ||||||||||
General and administrative | 30.8 | (2.5) | 28.3 | 26.7 | (0.9) | 25.8 | ||||||||||
Total stock-based compensation expense | (8.2) | (5.1) | ||||||||||||||
(2) The non-GAAP percentage increase (decrease) compares non-GAAP measures for the two different periods. In the event there is a non-GAAP adjustment to the relevant measure for only one of the periods under comparison, the non-GAAP increase (decrease) compares the non-GAAP measure to the relevant GAAP measure.
(3) Based on a weighted average 119.1 million diluted shares for Q4 2008 and 120.6 million diluted shares for Q4 2007. |
DASSAULT SYSTEMES
SUPPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. GAAP – NON-GAAP RECONCILIATION
(in millions of Euros, except per share data, unaudited)
Readers are cautioned that the supplemental non-GAAP information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, the Company’s supplemental non-GAAP financial information may not be comparable to similarly titled non-GAAP measures used by other companies. Further specific limitations for individual non-GAAP measures, and the reasons for presenting non-GAAP financial information, are set forth in today’s press release with respect to other operating income and expense, net and in the Company’s annual report for the year ended December 31, 2007 on Form 20-F filed with the SEC on April 4, 2008 for the other non-GAAP financial measures. To compensate for these limitations, the supplemental non-GAAP financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with U.S. GAAP.
In millions of Euros, except per share data and percentages | Twelve months ended December 31, | Variation | ||||||||||||||
2008 |
Adjustment |
2008 | 2007 |
Adjustment |
2007 | U.S. GAAP |
Non-GAAP |
|||||||||
U.S. GAAP |
(1) |
non-GAAP | U.S. GAAP |
(1) |
non-GAAP |
(2) |
||||||||||
Total Revenue | € 1,334.8 | 3.4 | € 1,338.2 | € 1,258.8 | 17.1 | € 1,275.9 | 6% | 5% | ||||||||
Total Revenue breakdown by activity | ||||||||||||||||
Software revenue | 1,154.4 | 3.4 | 1,157.8 | 1,063.3 | 17.1 | 1,080.4 | 9% | 7% | ||||||||
New Licenses | 407.6 | 417.5 | 6.0 | 423.5 | (2%) | |||||||||||
Product Development | 5.5 | 11.0 | -- | |||||||||||||
Periodic Licenses and Maintenance | 741.3 | 3.4 | 744.7 | 634.8 | 11.1 | 645.9 | 17% | 15% | ||||||||
Recurring portion of Software revenue | 64% | 64% | 60% | 60% | ||||||||||||
Services and other revenue | 180.4 | 195.5 | (8%) | |||||||||||||
Total Software Revenue breakdown by product line | ||||||||||||||||
PLM software revenue | 878.2 | 3.4 | 881.6 | 811.0 | 14.4 | 825.4 | 8% | 7% | ||||||||
of which CATIA software revenue | 522.2 | 0.3 | 522.5 | 478.4 | 8.5 | 486.9 | 9% | 7% | ||||||||
of which ENOVIA software revenue | 178.7 | 0.4 | 179.1 | 166.9 | 5.9 | 172.8 | 7% | 4% | ||||||||
Mainstream 3D software revenue | 276.2 | 252.3 | 2.7 | 255.0 | 9% | 8% | ||||||||||
Total Revenue breakdown by geography | ||||||||||||||||
Americas | 410.1 | 1.8 | 411.9 | 391.8 | 6.1 | 397.9 | 5% | 4% | ||||||||
Europe | 620.2 | 0.8 | 621.0 | 575.9 | 8.4 | 584.3 | 8% | 6% | ||||||||
Asia | 304.5 | 0.8 | 305.3 | 291.1 | 2.6 | 293.7 | 5% | 4% | ||||||||
Total Operating Expenses | € 1,062.9 | (66.7) | € 996.2 | € 1,006.1 | (64.7) | € 941.4 | 6% | 6% | ||||||||
Stock-based compensation expense | 22.0 | (22.0) | - | 17.9 | (17.9) | - | -- | -- | ||||||||
Amortization of acquired intangibles | 44.9 | (44.9) | - | 46.8 | (46.8) | - | -- | -- | ||||||||
Other operating income and expense, net | (0.2) | 0.2 | - | 0.0 | -- | -- | ||||||||||
Operating Income | € 271.9 | 70.1 | € 342.0 | € 252.7 | 81.8 | € 334.5 | 8% | 2% | ||||||||
Operating Margin | 20.4% | 25.6% | 20.1% | 26.2% | ||||||||||||
Income before Income Taxes | 280.8 | 70.1 | 350.9 | 260.0 | 81.8 | 341.8 | 8% | 3% | ||||||||
Income tax expense | (82.4) | (27.4) | (109.8) | (81.2) | (23.1) | (104.3) | -- | -- | ||||||||
Income tax effect of adjustments above | 27.4 | (27.4) | - | 23.1 | (23.1) | - | -- | -- | ||||||||
Minority interest | (0.4) | (0.3) | -- | |||||||||||||
Net Income | € 198.0 | 42.7 | € 240.7 | € 178.5 | 58.7 | € 237.2 | 11% | 1% | ||||||||
Diluted Net Income Per Share (3) | € 1.66 | 0.36 | € 2.02 | € 1.49 | 0.49 | € 1.98 | 11% | 2% | ||||||||
(1) In the reconciliation schedule above, (i) all non-GAAP adjustments to GAAP revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-GAAP adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net, and stock-based compensation expense (as detailed below); and (iii) all non-GAAP adjustments to GAAP net income data reflect the combined effect of these non-GAAP adjustments. |
||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||
In millions of Euros |
2008 U.S. |
Adjustment | 2008 |
2007 U.S. |
Adjustment | 2007 | ||||||||||
GAAP |
non-GAAP |
GAAP |
non-GAAP | |||||||||||||
Cost of services and other revenue | 155.2 | (0.7) | 154.5 | 156.3 | (0.7) | 155.6 | ||||||||||
Research and development | 309.6 | (11.9) | 297.7 | 302.9 | (10.3) | 292.6 | ||||||||||
Marketing and sales | 387.3 | (4.2) | 383.1 | 350.0 | (3.7) | 346.3 | ||||||||||
General and administrative | 109.3 | (5.2) | 104.1 | 97.1 | (3.2) | 93.9 | ||||||||||
Total stock-based compensation expense | (22.0) | (17.9) | ||||||||||||||
(2) The non-GAAP percentage increase (decrease) compares non-GAAP measures for the two different periods. In the event there is a non-GAAP adjustment to the relevant measure for only one of the periods under comparison, the non-GAAP increase (decrease) compares the non-GAAP measure to the relevant GAAP measure.
(3) Based on a weighted average 119.3 million diluted shares for FY 2008 and 119.6 million diluted shares for FY 2007. |
DASSAULT SYSTEMES
NON-GAAP KEY FIGURES
(in millions of Euros, except per share data, headcount and exchange rates, unaudited)
Non-GAAP key figures exclude the effects of adjusting the carrying value of acquired companies’ deferred revenue, amortization of acquired intangible assets, stock-based compensation expense and other operating income and expense, net.
Comparable U.S. GAAP financial information and a reconciliation of the GAAP and non-GAAP measures are set forth in the preceding tables.
Three months ended | Twelve months ended | |||||||||||||||
December 31, 2008 | December 31, 2007 | Variation | Variation in cc* | December 31, 2008 | December 31, 2007 | Variation | Variation in cc* | |||||||||
Non-GAAP Revenue | € 384.4 | € 371.1 | 4% | (3%) | € 1,338.2 | € 1,275.9 | 5% | 8% | ||||||||
Non-GAAP Revenue breakdown by activity | ||||||||||||||||
Software Revenue | 332.3 | 316.3 | 5% | (1%) | 1,157.8 | 1,080.4 | 7% | 10% | ||||||||
of which New Licenses Revenue | 115.2 | 138.7 | (17%) | (22%) | 407.6 | 423.5 | (4%) | (2%) | ||||||||
of which Periodic Licenses, Maintenance and
Product Development Revenue |
217.1 | 177.6 | 22% | 15% | 750.2 | 656.9 | 14% | 17% | ||||||||
Services and other Revenue | 52.1 | 54.8 | (5%) | (11%) | 180.4 | 195.5 | (8%) | (5%) | ||||||||
Non-GAAP Software Revenue breakdown by product line | ||||||||||||||||
PLM software Revenue | 257.3 | 249.3 | 3% | (3%) | 881.6 | 825.4 | 7% | 10% | ||||||||
of which CATIA software Revenue | 150.7 | 152.6 | (1%) | (7%) | 522.5 | 486.9 | 7% | 10% | ||||||||
of which ENOVIA software Revenue | 53.7 | 50.9 | 6% | (3%) | 179.1 | 172.8 | 4% | 7% | ||||||||
Mainstream 3D software Revenue | 75.0 | 67.0 | 12% | 4% | 276.2 | 255.0 | 8% | 11% | ||||||||
Non-GAAP Revenue breakdown by geography | ||||||||||||||||
Americas | 119.2 | 107.8 | 11% | 0% | 411.9 | 397.9 | 4% | 11% | ||||||||
Europe | 178.8 | 186.2 | (4%) | (4%) | 621.0 | 584.3 | 6% | 6% | ||||||||
Asia | 86.4 | 77.1 | 12% | (4%) | 305.3 | 293.7 | 4% | 6% | ||||||||
Non-GAAP Operating Income | € 114.1 | € 129.4 | (12%) | € 342.0 | € 334.5 | 2% | ||||||||||
Non-GAAP Operating Margin | 29.7% | 34.9% | 25.6% | 26.2% | ||||||||||||
Non-GAAP Net Income | 78.3 | 94.2 | (17%) | 240.7 | 237.2 | 1% | ||||||||||
Non-GAAP Diluted Net Income Per Share | € 0.66 | € 0.78 | (15%) | € 2.02 | € 1.98 | 2% | ||||||||||
Closing headcount | 7,875 | 7,459 | 6% | |||||||||||||
Average Rate USD per Euro | 1.32 | 1.45 | (9%) | 1.47 | 1.37 | 7% | ||||||||||
Average Rate JPY per Euro | 126.4 | 164.3 | (23%) | 152.3 | 161.4 | (6%) | ||||||||||
*In constant currencies. |
DASSAULT SYSTEMES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS) (in millions of Euros, except per share data, unaudited) |
||||||||
Three months ended | Twelve months ended | |||||||
December 31, | December 31, | December 31, | December 31, | |||||
2008 | 2007 | 2008 | 2007 | |||||
New licenses revenue | 115.2 | 132.7 | 407.6 | 417.5 | ||||
Periodic licenses, maintenance and product development revenue | 215.6 | 175.6 | 746.8 | 645.8 | ||||
Software revenue | 330.8 | 308.3 | 1,154.4 | 1,063.3 | ||||
Services and other revenue | 52.1 | 54.8 | 180.4 | 195.5 | ||||
Total Revenue | € 382.9 | € 363.1 | € 1,334.8 | € 1,258.8 | ||||
Cost of software revenue (excluding amortization of acquired intangibles) | 15.1 | 11.2 | 56.8 | 53.0 | ||||
Cost of services and other revenue | 43.1 | 39.3 | 155.2 | 156.3 | ||||
Research and development | 81.2 | 74.6 | 309.6 | 302.9 | ||||
Marketing and sales | 108.3 | 95.1 | 387.3 | 350.0 | ||||
General and administrative | 30.8 | 26.6 | 109.3 | 97.1 | ||||
Amortization of acquired intangibles | 14.5 | 9.7 | 42.9 | 35.4 | ||||
Other operating income and expense, net | 8.3 | 0.0 | (0.2) | 0.0 | ||||
Total Operating Expenses | € 301.3 | € 256.5 | € 1,060.9 | € 994.7 | ||||
Operating Income | € 81.6 | € 106.6 | € 273.9 | € 264.1 | ||||
Financial revenue and other, net | (1.2) | (0.7) | 8.9 | 7.3 | ||||
Income before income taxes | 80.4 | 105.9 | 282.8 | 271.4 | ||||
Income tax expense | (24.1) | (37.8) | (81.9) | (94.4) | ||||
Net Income | 56.3 | 68.1 | 200.9 | 177.0 | ||||
Minority interest | (0.2) | (0.1) | (0.4) | (0.3) | ||||
Net Income attributable to shareholders | € 56.1 | € 68.0 | € 200.5 | € 176.7 | ||||
Basic net income per share | 0.48 | 0.59 | 1.71 | 1.52 | ||||
Diluted net income per share | € 0.47 | € 0.57 | € 1.68 | € 1.48 | ||||
Basic weighted average shares outstanding (in millions) | 117.7 | 117.2 | 117.3 | 116.4 | ||||
Diluted weighted average shares outstanding (in millions) | 119.1 | 120.6 | 119.3 | 119.6 | ||||
IFRS revenue variation as reported and in constant currencies |
||||||||
Three months ended December 31, 2008 | Twelve months ended December 31, 2008 | |||||||
Variation* | Variation in cc** | Variation* | Variation in cc** | |||||
IFRS Revenue | 5% | (1%) | 6% | 9% | ||||
IFRS Revenue by activity | ||||||||
Software Revenue | 7% | 1% | 9% | 11% | ||||
Services and other Revenue | (5%) | (11%) | (8%) | (5%) | ||||
IFRS Software Revenue by product line | ||||||||
PLM software revenue | 6% | 0% | 8% | 11% | ||||
of which CATIA software revenue | 4% | (2%) | 9% | 12% | ||||
of which ENOVIA software revenue | 6% | (2%) | 7% | 10% | ||||
Mainstream 3D software revenue | 12% | 4% | 9% | 13% | ||||
IFRS Revenue by geography | ||||||||
Americas | 12% | 2% | 5% | 12% | ||||
Europe | (2%) | (2%) | 8% | 8% | ||||
Asia | 13% | (3%) | 5% | 7% | ||||
* Variation compared to the same period in the prior year. ** In constant currencies. |
DASSAULT SYSTEMES CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS) (in millions of Euros, unaudited) |
||||
December 31, | December 31, | |||
2008 | 2007 | |||
ASSETS | ||||
Cash and cash equivalents | 794.1 | 597.2 | ||
Short-term investments | 46.3 | 29.4 | ||
Accounts receivable, net | 329.4 | 320.0 | ||
Other current assets | 138.4 | 96.6 | ||
Total current assets | 1,308.2 | 1,043.2 | ||
Property and equipment, net | 69.3 | 61.1 | ||
Intangible assets, net | 722.0 | 716.2 | ||
Other non current assets | 42.5 | 38.5 | ||
Total Assets | € 2,142.0 | € 1,859.0 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | 70.1 | 48.4 | ||
Unearned revenues | 250.7 | 207.5 | ||
Other current liabilities | 202.2 | 181.3 | ||
Total current liabilities | 523.0 | 437.2 | ||
Long-term debt | 200.7 | 202.9 | ||
Other non current obligations | 113.8 | 100.7 | ||
Total long-term liabilities | 314.5 | 303.6 | ||
Minority interests | 1.6 | 1.3 | ||
Shareholders' equity | 1,302.9 | 1,116.9 | ||
Total Liabilities and Shareholders' equity | € 2,142.0 | € 1,859.0 |
DASSAULT SYSTEMES CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS) (in millions of Euros, unaudited) |
||||||||||||
Three months ended | Twelve months ended | |||||||||||
December 31, 2008 | December 31, 2007 | Variation | December 31, 2008 | December 31, 2007 | Variation | |||||||
Net Income | 56.3 | 68.1 | (11.8) | 200.9 | 177.0 | 23.9 | ||||||
Depreciation and Amortization of Property, Plant & Equipment | 6.6 | 4.9 | 1.7 | 23.0 | 24.7 | (1.7) | ||||||
Amortization of intangible assets | 11.7 | 11.4 | 0.3 | 43.5 | 43.5 | 0.0 | ||||||
Other Non Cash P&L Items | 48.8 | 50.5 | (1.7) | 35.6 | 42.4 | (6.8) | ||||||
Changes in working capital | (76.8) | (59.0) | (17.8) | 6.1 | 23.8 | (17.7) | ||||||
Net Cash provided by operating activities | 46.6 | 75.9 | (29.3) | 309.1 | 311.4 | (2.3) | ||||||
Acquisition of assets and equity, net of cash acquired | (16.0) | (15.7) | (0.3) | (82.6) | (106.0) | 23.4 | ||||||
Sale of assets and equity | 0.1 | 0.1 | 0.0 | 36.7 | 0.2 | 36.5 | ||||||
Purchase of short term investments, net | 21.4 | (6.8) | 28.2 | (16.8) | 19.1 | (35.9) | ||||||
Loans and others | 0.2 | 0.4 | (0.2) | (0.1) | (0.1) | 0.0 | ||||||
Net Cash provided by (used in) investing activities | 5.7 | (22.0) | 27.7 | (62.8) | (86.8) | 24.0 | ||||||
Borrowings | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||
Share repurchase | (44.0) | 0.0 | (44.0) | (79.0) | 0.0 | (79.0) | ||||||
DS Stock Option and preferred Stock Exercise | 14.7 | 9.0 | 5.7 | 57.5 | 47.0 | 10.5 | ||||||
Cash dividend paid | 0.0 | 0.0 | 0.0 | (53.7) | (50.8) | (2.9) | ||||||
Payments on capital lease obligations | 0.0 | 0.0 | 0.0 | 0.0 | (0.4) | 0.4 | ||||||
Net Cash provided by (used in) financing activities | (29.3) | 9.0 | (38.3) | (75.2) | (4.2) | (71.0) | ||||||
Effect of exchange rate changes on
cash and cash equivalents |
8.5 | (9.3) | 17.8 | 25.8 | (31.9) | 57.7 | ||||||
Increase in cash and cash equivalents | 31.5 | 53.6 | (22.1) | 196.9 | 188.5 | 8.4 | ||||||
Cash and cash equivalents at beginning of period | 762.6 | 543.6 | 597.2 | 408.7 | ||||||||
Cash and cash equivalents at end of period | 794.1 | 597.2 | 794.1 | 597.2 |
DASSAULT SYSTEMES
SUPPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(in millions of Euros, except per share data, unaudited)
Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company’s supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in today’s press release with respect to other operating income and expense, net and in the Company’s Document de référence for the year ended December 31, 2007 filed with the AMF on April 4, 2008 for the other non-IFRS financial measures. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS.
|
||||||||||||||||
In millions of Euros, except per share data and percentages | Three months ended December 31, | Variation | ||||||||||||||
2008 |
Adjustment |
2008 | 2007 |
Adjustment |
2007 | IFRS |
Non-IFRS |
|||||||||
IFRS |
(1) |
non-IFRS | IFRS |
(1) |
non-IFRS |
(2) |
||||||||||
Total Revenue | € 382.9 | 1.5 | € 384.4 | € 363.1 | 8.0 | € 371.1 | 5% | 4% | ||||||||
Total Revenue breakdown by activity | ||||||||||||||||
Software revenue | 330.8 | 1.5 | 332.3 | 308.3 | 8.0 | 316.3 | 7% | 5% | ||||||||
New Licenses | 115.2 | 132.7 | 6.0 | 138.7 | (13%) | |||||||||||
Product Development | 4.1 | 6.8 | -- | |||||||||||||
Periodic Licenses and Maintenance | 211.5 | 1.5 | 213.0 | 168.8 | 2.0 | 170.8 | 25% | 25% | ||||||||
Recurring portion of Software revenue | 64% | 64% | 55% | 54% | ||||||||||||
Services and other revenue | 52.1 | 54.8 | (5%) | |||||||||||||
Total Software Revenue breakdown by product line | ||||||||||||||||
PLM software revenue | 255.8 | 1.5 | 257.3 | 241.3 | 8.0 | 249.3 | 6% | 3% | ||||||||
of which CATIA software revenue | 150.7 | 145.2 | 7.4 | 152.6 | 4% | (1%) | ||||||||||
of which ENOVIA software revenue | 53.5 | 0.2 | 53.7 | 50.3 | 0.6 | 50.9 | 6% | 6% | ||||||||
Mainstream 3D software revenue | 75.0 | 67.0 | 12% | |||||||||||||
Total Revenue breakdown by geography | ||||||||||||||||
Americas | 118.9 | 0.3 | 119.2 | 106.0 | 1.8 | 107.8 | 12% | 11% | ||||||||
Europe | 178.3 | 0.5 | 178.8 | 181.4 | 4.8 | 186.2 | (2%) | (4%) | ||||||||
Asia | 85.7 | 0.7 | 86.4 | 75.7 | 1.4 | 77.1 | 13% | 12% | ||||||||
Total Operating Expenses | € 301.3 | (31.0) | € 270.3 | € 256.5 | (14.8) | € 241.7 | 17% | 12% | ||||||||
Stock-based compensation expense | 8.2 | (8.2) | - | 5.1 | (5.1) | - | - | - | ||||||||
Amortization of acquired intangibles | 14.5 | (14.5) | - | 9.7 | (9.7) | - | - | - | ||||||||
Other operating income and expense, net | 8.3 | (8.3) | - | 0.0 | 0.0 | - | - | - | ||||||||
Operating Income | € 81.6 | 32.5 | € 114.1 | € 106.6 | 22.8 | € 129.4 | (23%) | (12%) | ||||||||
Operating Margin | 21.3% | 29.7% | 29.4% | 34.9% | ||||||||||||
Income before Income Taxes | 80.4 | 32.5 | 112.9 | 105.9 | 22.8 | 128.7 | (24%) | (12%) | ||||||||
Income tax expense | (24.1) | (10.3) | (34.4) | (37.8) | (6.3) | (44.1) | - | - | ||||||||
Income tax effect of adjustments above | 10.3 | (10.3) | - | 6.3 | (6.3) | - | - | - | ||||||||
Minority interest | (0.2) | (0.1) | - | |||||||||||||
Net Income attributable to shareholders | € 56.1 | 22.2 | € 78.3 | € 68.0 | 16.5 | € 84.5 | (18%) | (7%) | ||||||||
Diluted Net Income Per Share (3) | € 0.47 | 0.19 | € 0.66 | € 0.57 | 0.13 | € 0.70 | (18%) | (6%) | ||||||||
(1) In the reconciliation schedule above, (i) all non-IFRS adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-IFRS adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net and stock-based compensation expense (as detailed below); and (iii) all non-IFRS adjustments to IFRS net income data reflect the combined effect of these non-IFRS adjustments. |
||||||||||||||||
Three months ended December 31, | ||||||||||||||||
In millions of Euros | 2008 IFRS | Adjustment | 2008 | 2007 IFRS | Adjustment | 2007 | ||||||||||
non-IFRS | non-IFRS | |||||||||||||||
Cost of services and other revenue | 43.1 | (0.2) | 42.9 | 39.3 | (0.3) | 39.0 | ||||||||||
Research and development | 81.2 | (4.0) | 77.2 | 74.6 | (2.9) | 71.7 | ||||||||||
Marketing and sales | 108.3 | (1.5) | 106.8 | 95.1 | (1.1) | 94.0 | ||||||||||
General and administrative | 30.8 | (2.5) | 28.3 | 26.6 | (0.8) | 25.8 | ||||||||||
Total stock-based compensation expense | (8.2) | (5.1) | ||||||||||||||
(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is a non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
(3) Based on a weighted average 119.1 million diluted shares for Q4 2008 and 120.6 million diluted shares for Q4 2007. |
DASSAULT SYSTEMES
SUPPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(in millions of Euro, except per share data, unaudited)
Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company’s supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in today’s press release with respect to other operating income and expense, net and in the Company’s Document de référence for the year ended December 31, 2007 filed with the AMF on April 4, 2008 for the other non-IFRS financial measures. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS.
In millions of Euros, except per share data and percentages | Twelve months ended December 31, | Variation | ||||||||||||||
2008 |
Adjustment |
2008 | 2007 |
Adjustment |
2007 | IFRS |
Non-IFRS |
|||||||||
IFRS |
(1) |
non-IFRS | IFRS |
(1) |
non-IFRS |
(2) |
||||||||||
Total Revenue | € 1,334.8 | 3.4 | € 1,338.2 | € 1,258.8 | 17.1 | € 1,275.9 | 6% | 5% | ||||||||
Total Revenue breakdown by activity | ||||||||||||||||
Software revenue | 1,154.4 | 3.4 | 1,157.8 | 1,063.3 | 17.1 | 1,080.4 | 9% | 7% | ||||||||
New Licenses | 407.6 | 417.5 | 6.0 | 423.5 | (2%) | |||||||||||
Product Development | 5.5 | 11.0 | -- | |||||||||||||
Periodic Licenses and Maintenance | 741.3 | 3.4 | 744.7 | 634.8 | 11.1 | 645.9 | 17% | 15% | ||||||||
Recurring portion of Software revenue | 64% | 64% | 60% | 60% | ||||||||||||
Services and other revenue | 180.4 | 195.5 | (8%) | |||||||||||||
Total Software Revenue breakdown by product line | ||||||||||||||||
PLM software revenue | 878.2 | 3.4 | 881.6 | 811.0 | 14.4 | 825.4 | 8% | 7% | ||||||||
of which CATIA software revenue | 522.2 | 0.3 | 522.5 | 478.4 | 8.5 | 486.9 | 9% | 7% | ||||||||
of which ENOVIA software revenue | 178.7 | 0.4 | 179.1 | 166.9 | 5.9 | 172.8 | 7% | 4% | ||||||||
Mainstream 3D software revenue | 276.2 | 252.3 | 2.7 | 255.0 | 9% | 8% | ||||||||||
Total Revenue breakdown by geography | ||||||||||||||||
Americas | 410.1 | 1.8 | 411.9 | 391.8 | 6.1 | 397.9 | 5% | 4% | ||||||||
Europe | 620.2 | 0.8 | 621.0 | 575.9 | 8.4 | 584.3 | 8% | 6% | ||||||||
Asia | 304.5 | 0.8 | 305.3 | 291.1 | 2.6 | 293.7 | 5% | 4% | ||||||||
Total Operating Expenses | € 1,060.9 | (64.7) | € 996.2 | € 994.7 | (53.3) | € 941.4 | 7% | 6% | ||||||||
Stock-based compensation expense | 22.0 | (22.0) | - | 17.9 | (17.9) | - | - | - | ||||||||
Amortization of acquired intangibles | 42.9 | (42.9) | - | 35.4 | (35.4) | - | - | - | ||||||||
Other operating income and expense, net | (0.2) | 0.2 | - | 0.0 | 0.0 | - | - | - | ||||||||
Operating Income | € 273.9 | 68.1 | € 342.0 | € 264.1 | 70.4 | € 334.5 | 4% | 2% | ||||||||
Operating Margin | 20.5% | 25.6% | 21.0% | 26.2% | ||||||||||||
Income before Income Taxes | 282.8 | 68.1 | 350.9 | 271.4 | 70.4 | 341.8 | 4% | 3% | ||||||||
Income tax expense | (81.9) | (27.9) | (109.8) | (94.4) | (19.6) | (114.0) | - | - | ||||||||
Income tax effect of adjustments above | 27.9 | (27.9) | - | 19.6 | (19.6) | - | - | - | ||||||||
Minority interest | (0.4) | (0.3) | - | |||||||||||||
Net Income attributable to shareholders | € 200.5 | 40.2 | € 240.7 | € 176.7 | 50.8 | € 227.5 | 13% | 6% | ||||||||
Diluted Net Income Per Share (3) | € 1.68 | 0.34 | € 2.02 | € 1.48 | 0.42 | € 1.90 | 14% | 6% | ||||||||
(1) In the reconciliation schedule above, (i) all non-IFRS adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-IFRS adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net and stock-based compensation expense (as detailed below); and (iii) all non-IFRS adjustments to IFRS net income data reflect the combined effect of these non-IFRS adjustments. |
||||||||||||||||
Twelve months ended December 31, | ||||||||||||||||
In millions of Euros | 2008 IFRS | Adjustment | 2008 | 2007 IFRS | Adjustment | 2007 | ||||||||||
non-IFRS | non-IFRS | |||||||||||||||
Cost of services and other revenue | 155.2 | (0.6) | 154.6 | 156.3 | (0.7) | 155.6 | ||||||||||
Research and development | 309.6 | (12.0) | 297.6 | 302.9 | (10.3) | 292.6 | ||||||||||
Marketing and sales | 387.3 | (4.2) | 383.1 | 350.0 | (3.7) | 346.3 | ||||||||||
General and administrative | 109.3 | (5.2) | 104.1 | 97.1 | (3.2) | 93.9 | ||||||||||
Total stock-based compensation expense | (22.0) | (17.9) | ||||||||||||||
(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is a non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
(3) Based on a weighted average 119.3 million diluted shares for FY 2008 and 119.6 million diluted shares for FY 2007. |
DASSAULT SYSTEMES U.S. GAAP – IFRS SUMMARY RECONCILIATION (in millions of Euros, except per share data, unaudited) |
||||||||||||
In millions of Euros | Three months ended December 31, | |||||||||||
2008 | Adjustment | 2008 | 2007 | Adjustment | 2007 | |||||||
U.S. GAAP | IFRS | U.S. GAAP | IFRS | |||||||||
Total Revenue | € 382.9 | € 0.0 | € 382.9 | € 363.1 | € 0.0 | € 363.1 | ||||||
Operating Income | € 101.1 | (€ 19.5) | € 81.6 | € 104.9 | € 1.7 | € 106.6 | ||||||
Amortization of acquired intangibles | (12.0) | (2.5) | (14.5) | (11.4) | 1.7 | (9.7) | ||||||
Other operating income and expense, net* | 8.7 | (17.0) | (8.3) | 0.0 | 0.0 | 0.0 | ||||||
Net Income attributable to shareholders | € 71.6 | (€ 15.5) | € 56.1 | € 76.6 | (€ 8.6) | € 68.0 | ||||||
Amortization of acquired intangibles | (12.0) | (2.5) | (14.5) | (11.4) | 1.7 | (9.7) | ||||||
Other operating income and expense, net* | 8.7 | (17.0) | (8.3) | 0.0 | 0.0 | 0.0 | ||||||
Income tax Expense | (28.1) | 4.0 | (24.1) | (27.5) | (10.3) | (37.8) | ||||||
Shareholders' equity | € 1,383.5 | (€ 80.6) | € 1,302.9 | € 1,195.8 | (€ 78.9) | € 1,116.9 | ||||||
In millions of Euros | Twelve months ended December 31, | |||||||||||
2008 | Adjustment | 2008 | 2007 | Adjustment | 2007 | |||||||
U.S. GAAP | IFRS | U.S. GAAP | IFRS | |||||||||
Total Revenue | € 1,334.8 | € 0.0 | € 1,334.8 | € 1,258.8 | € 0.0 | € 1,258.8 | ||||||
Operating Income | € 271.9 | € 2.0 | € 273.9 | € 252.7 | € 11.4 | € 264.1 | ||||||
Amortization of acquired intangibles | (44.9) | 2.0 | (42.9) | (46.8) | 11.4 | (35.4) | ||||||
Other operating income and expense, net* | 0.2 | 0.0 | 0.2 | 0.0 | 0.0 | 0.0 | ||||||
Net Income attributable to shareholders | € 198.0 | € 2.5 | € 200.5 | € 178.5 | (€ 1.8) | € 176.7 | ||||||
Amortization of acquired intangibles | (44.9) | 2.0 | (42.9) | (46.8) | 11.4 | (35.4) | ||||||
Other operating income and expense, net* | 0.2 | 0.0 | 0.2 | 0.0 | 0.0 | 0.0 | ||||||
Income tax Expense | (82.4) | 0.5 | (81.9) | (81.2) | (13.2) | (94.4) | ||||||
Shareholders' equity | € 1,383.5 | (€ 80.6) | € 1,302.9 | € 1,195.8 | (€ 78.9) | € 1,116.9 |
* Under U.S. GAAP the Company has recognized the gain on sale of real estate in connection with the relocation of its corporate headquarters in the 2008 fourth quarter. Under IFRS the gain on sales was recognized in the 2008 first quarter.
DASSAULT SYSTEMES
SUPPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
Non-GAAP – non-IFRS SUMMARY RECONCILIATION
(in millions of Euros, except per share data, unaudited)
Readers are cautioned that the supplemental non-GAAP and non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP or IFRS measurements. Also, the Company’s supplemental non-GAAP and non-IFRS financial information may not be comparable to similarly titled non-GAAP and non-IFRS measures used by other companies. Further specific limitations for individual non-GAAP and non-IFRS measures, and the reasons for presenting non-GAAP and non-IFRS financial information, are set forth in today’s press release with respect to other operating income and expense, net and respectively in the Company’s annual report for the year ended December 31, 2007 on Form 20-F filed with the SEC on April 4, 2008 for the other non-GAAP financial measures and in the Document de Référence filed with the AMF on April 4, 2008 for the other non-IFRS financial measures. To compensate for these limitations, the supplemental non-GAAP and non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with U.S. GAAP and IFRS.
In millions of Euros | Three months ended December 31, | |||||||||||
2008 | Adjustment | 2008 | 2007 | Adjustment | 2007 | |||||||
non-GAAP | non-IFRS | non-GAAP | non-IFRS | |||||||||
Total Revenue | € 384.4 | € 0.0 | € 384.4 | € 371.1 | € 0.0 | € 371.1 | ||||||
Operating Income | € 114.1 | € 0.0 | € 114.1 | € 129.4 | € 0.0 | € 129.4 | ||||||
Net Income attributable to shareholders | € 78.3 | € 0.0 | € 78.3 | € 94.2 | (€ 9.7) | € 84.5 | ||||||
In millions of Euros | Twelve months ended December 31, | |||||||||||
2008 | Adjustment | 2008 | 2007 | Adjustment | 2007 | |||||||
non-GAAP | non-IFRS | non-GAAP | non-IFRS | |||||||||
Total Revenue | € 1,338.2 | € 0.0 | € 1,338.2 | € 1,275.9 | € 0.0 | € 1,275.9 | ||||||
Operating Income | € 342.0 | € 0.0 | € 342.0 | € 334.5 | € 0.0 | € 334.5 | ||||||
Net Income attributable to shareholders | € 240.7 | € 0.0 | € 240.7 | € 237.2 | (€ 9.7) | € 227.5 |
Contact:
Dassault Systèmes:
Valérie Agathon/Beatrix Martinez
33.1.61.62.69.24
or
Financial
Dynamics:
Juliet Clarke/Haya Chelhot/Erwan Gouraud
44.20.7831.3113
Laurence
Borbalan/Eloi Perrin-Aussedat
Florence de Montmarin
33.1.47.03.68.10