“The reception of 3DEXPERIENCE as the next Company horizon was very good, with key customers wins to illustrate it. In addition, thanks to our indirect channels capacity extension, we won 20,000 new customers in 2012, a record so far, and thanks to our brands, we reached 10 million users.”
“Finally, 2012 was also a record year financially for both revenue and earnings. We crossed the €2 billion revenue milestone thanks to non-IFRS software revenue growth of 10% in constant currencies and delivered non-IFRS earnings per share growth of 15%, demonstrating our ability to execute on our ambitious roadmap for the future while also maintaining a strong operational focus.”
|2012 Fourth Quarter Financial Summary|
|In millions of Euros, except per share data||IFRS||Non-IFRS|
|Change||Change in cc*||Change||Change in cc*|
|Q4 Total Revenue||563.5||10%||7%||568.2||11%||8%|
|Q4 Software Revenue||510.8||11%||8%||515.5||12%||9%|
|Q4 Operating Margin||27.9%||34.7%|
|In millions of Euros||IFRS||Non-IFRS|
|Q4 2012||Q4 2011||Change in cc*||Q4 2012||Q4 2011||Change in cc*|
|Services and other Revenue||52.7||50.0||3%||52.7||50.0||3%|
|PLM software Revenue||407.4||371.0||7%||412.1||371.0||8%|
|SOLIDWORKS software Revenue||103.4||91.1||11%||103.4||91.1||11%|
*In constant currencies.
- Revenue results for the fourth quarter were well in line with the Company’s expectations, evidenced by a mixed economic climate as reflected in lower seasonal growth in new licenses revenue and also reflected a strong year-ago comparison, notably for Europe.
- Total revenue grew 7% (IFRS) and 8% (non-IFRS) in constant currencies. By region and in constant currencies, non-IFRS revenue growth was highest in Asia, up 14%, led by Japan, Korea and China. In the Americas, non-IFRS revenue increased 9% year on year through growth in both North America and Latin America. Non-IFRS revenue growth in Europe of 5% was led by Germany and France.
- Software revenue increased 8% (IFRS) and 9% (non-IFRS), with recurring revenue up 10% (IFRS) and 11% (non-IFRS) and new licensing revenue up 3%. Recurring revenue is comprised of maintenance and rental licensing, the latter being up 20%. Regionally, new licenses revenue growth was strongest in Asia while rental licensing activity was strongest in Europe and the Americas (All growth comparisons are in constant currencies).
- IFRS operating income increased 16% to €157.0 million and IFRS earnings per diluted share increased 12% to €0.76. Non-IFRS earnings per diluted share increased 17% to €1.02 on operating income growth of 18% and the non-IFRS operating margin was 34.7% compared to 32.8% in the year-ago period.
- PLM software revenue increased 7% (IFRS) and 8% (non-IFRS). Non-IFRS PLM software revenue growth was led by Other PLM, with strong performances by SIMULIA, DELMIA and 3DVIA up double-digits and including the addition of Gemcom. CATIA software revenue increased 1%. ENOVIA software revenue growth was flat (All growth comparisons are in constant currencies).
- SOLIDWORKS software revenue increased 11% in constant currencies benefiting from both new licensing activity and growth in recurring software revenue. New SOLIDWORKS commercial seats licensed in the quarter increased 13% to 13,751.
2012 Financial Summary
|In millions of Euros||IFRS||Non-IFRS|
|FY 2012||FY 2011||Change in cc*||FY 2012||FY 2011||Change in cc*|
|Services and other Revenue||185.1||166.1||7%||185.1||166.1||7%|
|PLM software Revenue||1,440.0||1,275.9||8%||1,450.2||1,276.4||9%|
|SOLIDWORKS software Revenue||403.2||341.0||12%||403.2||341.0||12%|
*In constant currencies.
- IFRS and non-IFRS total revenue increased 9% primarily driven by software revenue growth of 9% (IFRS) and 10% (non-IFRS), respectively. Software revenue represented 91% of total revenue. Services and other revenue increased 7% and the services gross margin improved to 5.7%. 2012 results include the acquisition of Gemcom and the divestiture of Transcat PLM GmbH. Excluding the six-month impact of the Gemcom acquisition as well as the sale of Transcat PLM GmbH, Dassault Systèmes non-IFRS revenue growth would have been 8% (All growth comparisons are in constant currencies).
- Regionally, Asia was the best performing with non-IFRS revenue increasing 14%, reflecting a further return to investment by Japanese customers and strong growth in China and Korea. Despite the impact of the macro-environment softening which began to affect regional results in Europe in the third quarter, full year performance was solid with revenue higher by 8%, led by Germany and France. In the Americas, there were a number of important wins and contract renewals during the year in the Company’s PLM sales channels and good growth in its Professional channel leading to a 7% increase in total revenue for that region. High growth countries posted 16% revenue growth on broad strength (All growth comparisons are in constant currencies).
- New business activity was reflected in both new licenses revenue and rental licensing revenue which recorded a 17% growth and is a component of recurring software revenue. IFRS and non-IFRS new licenses revenue increased 9% in constant currencies with new licenses revenue highest in Asia, followed by Europe and the Americas. SIMULIA, CATIA and SOLIDWORKS reported strong new licenses revenue growth.
- Recurring software revenue increased 9% (IFRS) and 10% (non-IFRS) in constant currencies benefiting from growth in maintenance from new licensing activity, strong renewal rates and growth in rental licensing. SIMULIA, ENOVIA and SOLIDWORKS reported strong recurring software revenue growth. Recurring software revenue represented 71% of total software revenue in 2012.
- The Company reported strong growth in operating income principally reflecting higher revenue. IFRS operating income increased 17% to €501.0 million and the operating margin improved 70 basis points to 24.7%. On a non-IFRS basis, operating income increased 19% to €644.3 million. The non-IFRS operating margin expanded 120 basis points to 31.6%, reflecting revenue growth and improved operating leverage.
- Net income per diluted share increased 14% to €2.66 (IFRS) and 15% to €3.37 (non-IFRS) per share. Growth in IFRS and non-IFRS earnings per share reflected higher revenue, operating margin expansion and growth in financial income offset in part by a higher effective tax rate.
- PLM software revenue increased 8% (IFRS) and 9% (non-IFRS). CATIA software revenue increased 5% led by Asia. ENOVIA software revenue increased 7%. Other PLM software revenue increased 19% (IFRS) and 22% (non-IFRS) led by SIMULIA and included GEOVIA, a new brand (All growth comparisons are in constant currencies).
- SOLIDWORKS software revenue increased 12% in constant currencies on sales of its design suite as well as sales of product data management, simulation, and on increased sales capacity. New SOLIDWORKS commercial seats licensed increased 11% to a record 52,987 seats. 2012 also marks a major new milestone with more than two million total SOLIDWORKS commercial and educational seats sold to date.