Thibault de Tersant, Senior Executive Vice President and CFO, commented, “Broad customer demand for our software products drove third quarter results, with revenue, operating margin and EPS coming in above the high end of our objectives. All of the revenue upside came through to earnings contributing to non-IFRS EPS growth of 18.5% and a non-IFRS operating margin of 32% in the third quarter, well ahead of our goals.
“We are increasing our 2011 financial objectives to incorporate the third quarter revenue over-performance leading to a 2011 non-IFRS total revenue growth outlook of 12% to 13% in constant currencies and non-IFRS earnings per share growth of about 14% to 16%.
“Thanks to our top-line dynamic in tandem with our work in leveraging the Company’s infrastructure, we are well positioned to reach our 30% non-IFRS operating margin goal this year, substantially in advance of our plans. Importantly, this approach has enabled us to increase staffing by 7% over the last 12 months to drive forward our customer, technology and market initiatives.”
The Company’s current objectives are as follows:
- Fourth quarter 2011 non-IFRS total revenue objective of about €455 to €465 million, non-IFRS operating margin of about 33% and non-IFRS EPS of about €0.80 to €0.85;
- Upgrading 2011 non-IFRS revenue growth objective range to 12% to 13% in constant currencies from 11% to 12% previously; (increasing the reported revenue range to €1.725 to €1.735 billion from €1.70 to €1.72 billion previously);
- Increasing 2011 non-IFRS operating margin to 30% from slightly in excess of 29%;
- Upgrading 2011 non-IFRS EPS range to €2.85 to €2.90 from €2.69 to €2.80 previously; representing growth of about 14% to 16% from 8% to 12%, previously;
- Objectives are based upon exchange rate assumptions for the 2011 fourth quarter of US$1.45 per €1.00 and JPY120 per €1.00 and a full year average of US$1.42 per €1.00 and JPY115 per €1.00.
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 non-IFRS objectives set forth above are estimated based upon the 2011 currency exchange rates above and do not take into account the following accounting elements: deferred revenue write-downs estimated at approximately €1 million for 2011; share-based compensation expense estimated at approximately €21 million for 2011 and amortization of acquired intangibles estimated at approximately €82 million for 2011. The objectives outlined above do not include any impact from other operating income and expense, net principally comprised of acquisition, integration, restructuring and relocation expenses and certain one-time gains in financial revenue and other, net. These estimates do not include any new stock option or share grants, or any new acquisitions or restructurings occurring after October 27, 2011.
Webcasted Meeting and Conference Call Information
Today, Thursday, October 27, 2011, Dassault Systèmes will first host a meeting in Paris, which will be simultaneously webcasted at 8:30 AM London time/9:30 AM Paris time and will then host a conference call at 9:00 AM New York time/ 2:00 PM London time/3:00 PM Paris time. The webcasted meeting and conference call will be available via the Internet by accessing http://www.3ds.com/company/finance/. Please go to the website at least 15 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 18.104.22.168.69.24.
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 Dassault Systèmes 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. If global economic and business conditions continue to be volatile or deteriorate, the Company’s business results may not develop as currently anticipated and may remain below their earlier levels for an extended period of time. In this regard, the impact of the earthquake of March 11, 2011, in Japan remains difficult to evaluate, but may be expected to have a negative impact on the Japanese economy. Furthermore, due to factors affecting sales of the Company’s products and services, there may be a substantial time lag between any change in global economic and business conditions and its impact on the Company’s business results.
In preparing such forward-looking statements, the Company has in
particular assumed an average U.S. dollar to euro exchange rate of
US$1.42 per €1.00 and an average Japanese yen to euro exchange rate of
JPY115 to €1.00 for 2011; however, currency values fluctuate, and the
Company’s results of operations may be significantly affected by changes
in exchange rates. The Company’s actual results or performance may also
be materially negatively affected by changes in the current global
economic context, difficulties or adverse changes affecting its partners
or its relationships with its partners, changes in exchange rates, 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 2010 Document de référence , and 2011 Half
Year Report as filed with the French Autorité des marchés financiers
(AMF) on April 1, 2011 and July 29, 2011, respectively, could materially
affect the Company’s financial position or results of operations.