Dassault's Board of Directors recently approved the voluntary delisting from Nasdaq. The delisting procedure will start in October 2008. From a reporting perspective, Dassault will continue reporting and publishing in US GAAP for the third and fourth quarters of this year. Commencing with 2009, however, DS will solely report and communicate in IFRS.
Bernard Charlès, Dassault Systèmes President and Chief Executive Officer, commented, “Dassault Systèmes had an excellent second quarter and first half reflecting the contribution of our PLM solutions to product competitiveness and innovation. In particular, we had an excellent dynamic in software across our leading brands with new wins and additional business in many of our verticals, including automotive, aerospace, high tech, energy, apparel and life sciences among others.
“We benefited from strong growth across our sales channels as we continue to focus on working closely together with our partners, improving our sales coverage and providing high value to our customers. In particular, our PLM Business Transformation channel delivered a strong performance this quarter thanks to IBM PLM as well as our direct sales force.”
On June 10, 2008 ESI Group reported financial results for its first quarter, the period ended April 30, 2008. Total revenue was 14.7 million euros giving organic growth of +12.0% on a constant exchange rate basis. The negative exchange rate effect impacted growth to the tune of -3.5%. Total revenue was up almost 9% year-over-over-year but down 48% from the previous month (the seasonally strong fourth quarter of fiscal year). License revenue was 10.8 million euros accounting for 73% of total revenue. This was a year-over-year increase of 3.8%. Services and other revenue were 3.9 million euros accounting for 27% of total revenue. This was almost a 26% increase from the previous year.
Each geographical zone on which ESI Group is positioned contributed to grow in a balanced way, leading to stability in the geographical breakdown of activity: 47% in Europe, 40% in Asia and 13% in the Americas.
In US Dollars total revenue was $22.9 million with license revenue contributing $16.8 million and services $6.1 million.
Alain de Rouvray, ESI Group's Chairman and CEO, concluded, “Recorded within an economic climate that remains agitated, the performances reported for our first quarter prove the solidity of our activity's organic growth. The ongoing dynamism of Services confirms the structural needs in terms of virtual prototyping and the increasing adoption by industry of our digital simulation technologies as well as methodologies, despite a visibility that remains low for the financial year as a whole.”
On August 5, 2008 MSC.Software Corporation reported the financial results for the second quarter, the period ended June 30, 2008. Total revenue for the quarter was $64.4 million, an increase of 6.1% from the $60.7 million in the second quarter of 2007 and an increase of 5.3% from the $61.2 million in the first quarter of 2008. Software revenue was $21 million, accounting for only 33% of total revenue, a drop of 8.3% year-over-year, and a drop of 4.1% sequentially. Maintenance revenue was $35.9 million, or a major 56% of total revenue. This was an increase of almost 13% year-over-year, and an increase of 8.8% from the prior quarter. Services revenue was $7.4 million, 11.5% of total revenue, an increase of 26% from the year ago quarter and an increase of 19.4% from the previous quarter.
The Americas accounted for 31% of total revenue, Europe for 38.5%, and Asia Pacific for 30%. Foreign exchange favorably impacted total revenue by $5.9 million in the quarter. Changes in the Euro increased EMEA revenue by $3.4 million, and changes in the Japanese Yen increased Asian revenue by $2.5 million.
On June 24, 2008 MSC.Software announced that it had acquired the MacNeal Group (tMG). The MacNeal Group was founded by Dr. Richard MacNeal, a pioneer in the CAE market, a leading authority on finite element technology, and of course one of the founders of the original MacNeal Schwendler Corporation (MSC) in 1963. The MacNeal Group brings to MSC.Software its unique computational Part and Assembly Analysis (PAA) methodology. PAA is said to be an advanced computational assembly framework for managing high-fidelity simulation assemblies in much the same way that CAD assemblies are controlled across an enterprise, but in a simulation context for improved accuracy and security for the behavior of the physical product components as computational “smart parts' within an overall assembly.
Net MSC.Software income for the second quarter of 2008 was $1.0 million, a decline of 56% from the $2.3 million in the year ago quarter, but a reversal of the $2.2 million net loss in the just prior quarter.
Bill Weyand, CEO and Chairman of MSC.Software, said, "Although software revenue continues to be impacted by our product transition, the enterprise simulation product suite represented 33% of total license revenue in the quarter. Additionally, we've focused and managed our professional consulting services for profitable revenue growth and this business was up 26% in the quarter. The continued strength in our maintenance revenue stream is indicative of the quality of our products and represents a tremendous asset for our business."
On July 22, 2008 PTC reported financial results for its third quarter of fiscal 2008, the period ended June 28, 2008. Total revenue for the quarter was $272 million, a healthy increase of 21% from the $225 million in the same quarter a year ago, and increase of 5.4% from the $258 million in the just previous quarter. License revenue was $77.6 million, accounting for only 29% of total revenue. But this was an increase of 25% year-over-year, and an increase of 6.4% from the $72.9 million in the prior quarter. Maintenance revenue was $130 million, a big 48% of total revenue, an increase of 26% year-over-year, and an increase of 7.6% sequentially. Services revenue was $63.8 million, itself 23% of total revenue. This was an increase of almost 7% year-over-year and flat relative to the previous quarter. PTC had solid services revenue growth in all geographic regions except for North America, which saw a 10% year-over-year decline in services revenue. On a geographic basis North America accounted for 33% of total revenue, Europe 41%, Japan 13%, and Pacific Rim almost 13%. See Table 7.
In the quarter PTC recognized more than $1 million each of license and services revenue from 13 customers, totaling $36 million. Three of these customers were in North America, five in Europe and five in Asia. This compares to 16 customers last quarter totaling $38 million, and 17 customers totaling $35 million in Q3 of last year.
Reseller revenue for the quarter was $70.4, accounting for 26% of total revenue. This was an increase of 48% year-over-year, and an increase of 4.3% sequentially. Channel revenue grew in all geographic regions: 125% in Japan, 70% in Europe, 11% in the Pacific Rim, and 1% in North America. Direct sales were $201 million, or 74% of total revenue. This was an increase of 13% year-over-year and an increase of 2.6% sequentially.
Net income for the quarter was $14.4 million, a drop of 82% from the $80.4 million in the year ago quarter, and a drop of 23% from the $18.8 million in the previous quarter. PTC took a $3.8 million restructuring charge in the quarter related primarily to their globalization strategy, as PTC continues to transition certain back-office functions to lower cost regions. PTC also reported a one-time non-cash loss recorded to other income (expense) of $6.2 million during the quarter, as it liquidated certain legal entities related to previous acquisitions. Note also for the quarter ended June 30, 2007, there was a one-time tax benefit due to the reversal of the valuation allowance recorded in the United States and a foreign jurisdiction of $58.9 million, and a favorable resolution of a tax claim of $3.9 million.
Richard Harrison, president and chief executive officer, commented, "We achieved 21% year-over-year non-GAAP revenue growth in the third quarter reflecting contribution from the CoCreate Software business acquired on November 30, 2007, organic revenue growth and favorable currency impact. Importantly, we achieved double digit license revenue growth in every region except the Pacific Rim." GAAP year-over-year revenue growth for the third fiscal quarter was 21%. Our third quarter non-GAAP revenue excludes the effect of purchase accounting on the acquired deferred maintenance revenue balance of CoCreate of approximately $1 million”