Revenue from North America was $131 million, or 31% of total revenue. This was a 12% decline year-over-year, but a 3.6% increase sequentially. European revenue was $196 million, accounting for 46% of the total. European revenue was down 20% from the year ago quarter, but up 9.6% from the just prior quarter. Revenue from Asia was $95 million, or 23% of the total. Asian revenue dropped over 16% year-over-year, and almost 2% from the previous quarter.
The Enovia brand, which includes Enovia, MatrixOne and SmarTeam, generated $55 million in the quarter, or 13% of total revenue. This was down 19% year-over-year, but up 23% sequentially. Note that MatrixOne was acquired in May 2006 for $410 million. Dassault has now combined SolidWorks and CosmosWorks into Mainstream 3D. This category generated $88 million, accounting for 21% of total revenue. This represented a decrease of 15% year-over-year ,and a decrease of 4.7% sequentially. CAD generated $160 million, or 38% of total revenue. This was down almost 19% year-over-year, but was up 6% sequentially. See Table 3.
DS’ net income for the quarter was $35 million, a drop of $32 million or 48% from the $67 million in the year ago quarter, and a drop of $3 million from the $37 million in the just prior quarter. (Note that the prior quarter included a gain of $22 million from the sale of company headquarters).
Bernard Charlès, Dassault Systèmes President and Chief Executive Officer, commented, “The second quarter unfolded as anticipated. Revenue, margin and earnings results came in at the high end of our objectives, thanks to continued strong interest in DS solutions across a diversified number of industries, and to our cost savings program which is being implemented without impacting our R&D and sales capacities.
“On balance, business conditions during the second quarter were similar to the first quarter with customers remaining cautious with respect to new business investments. We started to see some increase in activity among larger companies, for which design excellence, simulation and compliance were significant drivers. For smaller companies, in general, it was not the case as we observed some slight further weakening from the first three months of the year.
On June 11, 2009 ESI Group reported limited financial results for the first quarter of its 2009/2010 fiscal year. The statements in this section are set forth primarily in the vernacular of the ESI report.
Sales for the first quarter of ESI Group’s current financial year totaled €16.4 million euros, up +3.8% in volume terms on the first quarter of 2008/09, and up +11.6% in actual terms given the favorable evolution of exchange rates.
The change in the geographical breakdown of the Group’s activity reflects the integration of Mindware, essentially based in the United States. 39% of first-quarter activity was thus recorded in Europe, 23% in the Americas and 38% in Asia, versus figures of 47%, 13% and 40%, respectively, in 2008/09.
Driven by the ongoing growth in the Licenses installed base, which grew by +4.1% by volume compared to the first quarter of the previous year, and by the positive exchange rate effect, License sales came to €11.1 million euros, up +2.9%. Although it continued to benefit from the stability of its Repeat Business at the high level of 81% by volume and from the growth in its installed base, License sales did however continue to suffer – albeit less than during the fourth quarter of 2008/09 – from the slowdown in new investments resulting from the deterioration in the economic situation around the world, and in Japan in particular. Subsequently, the proportion of New Business at the end of the first quarter of 2009/10 was down to 14% of License sales, versus 22% at the end of the first quarter of 2008/09.
Sales from Services totaled €5.3 million euros, up +35.1% in actual terms and +31.4% by volume. Consolidated within the Group since mid-December 2008, Mindware recorded a first quarter that was in line with expectations and contributed 1.5 million euros to total Group sales. Penalized by a negative base effect given the very high rate of growth recorded by Services over the first three months of the previous financial year, Service sales totaled €3.8 million euros on a constant scope basis at the end of the first quarter of 2009/10, down -2.2% on the sales figure of €3.9 million euros recorded over the first quarter of 2008/09.
The July 7, 2009, MSC.Software announcement that it had entered into a definitive agreement with affiliates of Symphony Technology Group (STG) has already been thoroughly discussed in the upfront News Highlights section of this Commentary. By the way, the Symphony Technology Group (STG) was founded in 2002 by Dr. Romesh Wadhwani, the man responsible for the largest merger in software history when he sold Aspect Development for a landmark $9.3 billion in 2000.
On August 4, 2009 MSC.Software reported its financial results for the second quarter ended June 30, 2009. Total revenue for the quarter was $51.6 million, a drop of nearly 20% from the $64.4 million in the second quarter of 2008, and a decline of 3.7% from the $53.6 million in the prior quarter. Software revenue was $14.9 million, or nearly 29% of total revenue. This was down 29% year-over-year, and down over 14% sequentially. Maintenance revenue was $32 million, or 62% of total revenue. This was down 11% from the year ago quarter, but up 31% sequentially. Services revenue was $4.8 million, accounting for over 9% of total revenue. Services revenue was down 35% from the same quarter a year earlier and down 8% from the previous quarter.
On a geographic basis North America accounted for 27% of total revenue, Europe 41% and Asia Pacific for 32%. See Table 5.
Changes in foreign currency negatively impacted total revenue by $2.0 million in the second quarter.
Net loss for the second quarter was $1.6 million, compared to net gains of $1.031 million twelve months ago and $147 thousand three months earlier.
Ashfaq Munshi, interim CEO and President of MSC Software, said, "Our top line performance continued to be impacted by the global economic downturn and its effect on our key customers particularly in the automotive and heavy manufacturing sectors. I am pleased however that the second quarter overall results were in line with our guidance,"
On July 28, 2009 PTC announced financial results for its third fiscal quarter ended July 4, 2009. Total revenue for the quarter was $226 million, accounting for 22% of total revenue, a drop of some 16% from the $270 million in the second fiscal quarter of last year, but a tiny increase of 0.4% from the $225 million in the just prior second fiscal quarter. The $226 million was in the middle of the guidance given last quarter. License revenue was a meager $49 million, a dip of 2.1% year-over-year but an increase of 17.5% sequentially. Maintenance revenue was $122 million, or 54% of the total. This was a decline of almost 7% from the year ago quarter, and a dip of 0.7% from the prior quarter. Service revenue was $55 million, or 24% of total revenue. This was a drop of just over 7% from the same quarter last year, and a decline of over 9% sequentially.
On a geographic basis, North America accounted for 38% of total revenue, Europe for 40 and Asia for 22%. See Table 6.