Dassault Systemes Reports Q3 Financial Results

PARIS—(BUSINESS WIRE)—Oct. 25, 2005— Dassault Systemes (DS) (Nasdaq: DASTY; Euronext Paris: #13065, DSY.PA), a worldwide leading software developer of 3D and Product Lifecycle Management (PLM) solutions, reported financial results for the third quarter and nine months ended September 30, 2005.

Third Quarter Financial and Business Highlights

-- Total revenue EUR 213.8 million, up 14% as reported and in constant currencies

-- Software revenue EUR 183.3 million, up 17% as reported and in constant currencies

-- Process-centric revenue EUR 170.4 million, up 11% as reported and 12% in constant currencies

-- PDM revenue EUR 26.5 million, up 12% as reported and in constant currencies, with PDM software end-user revenue up 33%

-- SolidWorks revenue EUR 43.4 million, up 24% as reported (up 24% in U.S. dollars)

-- EPS EUR 0.32 on U.S. GAAP basis and EPS EUR 0.32 excluding acquisition costs, up 14%

-- Providing initial 2006 financial objectives

Bernard Charles, President and Chief Executive Officer, commented, "Strong growth across our software applications drove our third quarter financial performance, enabling Dassault Systemes to report a 17% increase in software revenue, and a 14% increase in earnings per share. We were particularly pleased with the third quarter and year-to-date progress in the Americas region, where we are successfully further expanding our market presence and increasing our market share. Our record performance in the Americas in 2005 to-date reflects contributions across all our software applications and market segments, reflecting strong customer demand for our PLM solutions and the effectiveness of our partnership with IBM. More specifically, building upon strong growth of CATIA V5, our total PLM software sales rose 28% in the Americas year-to-date. Our performance in V5 PLM was also mirrored in the Mainstream market with SolidWorks, where software revenues increased 26% in the Americas during this same time-period.

"DS is on track in 2005 to deliver another year of accelerating revenue growth based upon our year-to-date performance and fourth quarter outlook. Looking to 2006 we believe DS is well-positioned to sustain the dynamics of strong revenue and earnings growth as we continue to penetrate and enlarge our addressable markets."

Third Quarter Financial Results

Revenue

Total revenue increased 14% as reported and in constant currencies to EUR 213.8 million in the third quarter of 2005, up from EUR 188.0 million in the year-ago quarter. Strong growth in software revenue drove the year-over-year increase in total revenue. Total software revenue represented 86% of total revenue with service revenue accounting for the remaining 14% of total revenue in the third quarter of 2005.

Total software revenue increased 17% (as reported and in constant currencies) to EUR 183.3 million in the third quarter of 2005, on strong growth across the Company's software applications. In the third quarter of 2004 total software revenue was EUR 156.7 million. Recurring licenses revenue represented 52% of total software revenue in the third quarter of 2005. New CATIA and SolidWorks seats licensed in the third quarter of 2005 increased 12% to 15,717 seats, compared to 14,002 seats in the year-ago period, with pricing up 3% for CATIA and up 4% in U.S. dollars for SolidWorks.

Service and other revenue decreased 3% as reported and 2% in constant currencies to EUR 30.5 million in the third quarter of 2005, compared to EUR 31.3 million in the third quarter of 2004, solely due to customer deferrals related to the execution of several consulting contracts in Europe. The Company noted that its CMP activity, the Channel Management Provider model, focused on PLM opportunities in the small- and medium-sized business (SMB) market, was well on track in the quarter.

Looking at total revenue by geographic regions, the Americas represented 35% of total revenue, Asia was 25% and Europe accounted for 40% of total revenue in the third quarter of 2005. In the Americas, total revenue increased 23% as reported and in constant currencies on strong year-over-year growth in software revenue among the Company's major brands. Similarly, in Asia, total revenue increased 23% as reported and 24% in constant currencies year over year, with good contributions from all major brands. In Europe, following a very strong first half performance, total revenue increased 2% year over year, largely reflecting lower than anticipated service revenue as noted above.

Process-centric revenue increased 11% as reported and 12% in constant currencies in the third quarter of 2005 largely reflecting strong software growth across design, digital manufacturing and PDM applications. In the third quarter of 2005, Process-centric revenue, including PDM revenue, totaled EUR 170.4 million, compared to EUR 153.0 million in the third quarter of 2004. PDM revenue increased 12% as reported and in constant currencies to EUR 26.5 million, compared to EUR 23.7 million in the year-ago period, on strong growth in software revenue. PDM software end-user revenue increased 33% in the 2005 third quarter, compared to the year-ago period. For the 2005 third quarter, CATIA licenses increased 7% year over year to 7,712.

In the Mainstream market, SolidWorks revenue increased 24% (24% in U.S. dollars) to EUR 43.4 million in the third quarter of 2005, up from EUR 35.0 million in the year-ago quarter. SolidWorks seats licensed increased 18% to 8,005 licenses.

Operating Income and Margin and EPS

Earnings per diluted share increased 14% to EUR 0.32 in the third quarter of 2005, compared to earnings per diluted share of EUR 0.28 in the third quarter of 2004. Earnings per diluted share excluding acquisition costs increased 14% to EUR 0.32 in the third quarter of 2005, compared to earnings per diluted share excluding acquisition costs of EUR 0.28 in the year-ago period.

In the third quarter of 2005 operating income increased 10% to EUR 50.5 million (23.6% operating margin), compared to EUR 46.1 million in the year-ago quarter (24.5% operating margin). Operating income excluding acquisition costs increased 10% to EUR 50.8 million in the recently completed quarter, compared to EUR 46.3 million in the third quarter of 2004. The operating margin excluding acquisition costs was 23.8% in the third quarter of 2005, coming in above DS's objective on a higher level of software revenue. In the year-ago quarter, the operating margin excluding acquisition costs was 24.6%.

Nine-month Financial Highlights

-- Total revenue EUR 630.3 million, up 13% as reported and up 15% in constant currencies

-- Software revenue EUR 531.4 million, up 14% as reported and up 16% in constant currencies

-- Process-centric revenue EUR 425.6 million, up 10% as reported and up 12% in constant currencies

-- PDM revenue EUR 74.8 million, up 13% as reported and up 15% in constant currencies, with software end-user revenue up 26%

-- SolidWorks revenue EUR 129.9 million, up 24% as reported (up 28% in U.S. dollars)

-- EPS EUR 0.91 on U.S. GAAP basis

-- EPS excluding acquisition costs up 10% to EUR 0.92

Strategy, Technology and Partnerships

Bernard Charles stated, "We completed the acquisition of ABAQUS in early October. I am pleased to report that the closing process went very smoothly. In fact, at the time of the completion of the acquisition, our new organization was ready to hit the ground running, with our simulation teams at both ABAQUS and CATIA working together."

DS completed the acquisition of ABAQUS Inc., the established leader in advanced finite element analysis software on October 4, 2005. The all-cash purchase price was US$413 million, before cash balances and tax benefits. ABAQUS, a wholly-owned subsidiary of DS, employs about 500 people worldwide, with its headquarters located in Providence, RI, USA, and R&D centers in Providence and in Suresnes, France. ABAQUS has 29 offices for technical support, sales and services, plus a network of distributors in emerging markets.

In a separate press release issued today, ABAQUS announces that BMW Group has adopted ABAQUS software as the basis for all its vehicle crashworthiness simulation. The decision comes after an intensive four-year technical collaboration during which the two companies worked together to advance ABAQUS software to meet BMW's requirements on accuracy and robustness.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9  Next Page »

Rating:


Review Article Be the first to review this article
SolidCAM: Program your CNCs directly inside your existing CAD system.


Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Siemens Goes ECAD With Mentor Graphics Acquisition
Jobs
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
GIS Analyst II for Air Worldwide at Boston, MA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise