Dassault Systemes Outperforms PLM Market with Solid First Quarter

PARIS--(BUSINESS WIRE)--April 24, 2003--

-- Financial Results Above Market Expectations With Revenue EUR 169.4 Million, Operating Margin 20.5% and EPS EUR 0.20
-- Before Acquisition Costs, Operating Margin 21.7% and EPS EUR 0.21
-- PDM Business Continues to Outperform PDM Market, With Revenue Up 17%
-- On a Constant Exchange Rate Basis, Total Revenue Increased 1%
-- DS Sets 8% EPS Growth Objective For 2003 or 7% Before Acquisition Costs; Reconfirms 2003 Revenue Objective

Dassault Systemes (DS) (Nasdaq: DASTY; Euronext Paris: #13065, DSY PA), a worldwide leading software developer of product lifecycle management (PLM) solutions, today reported financial results for the first quarter ended March 31, 2003.

All financial information is unaudited and reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Additional financial information, specifically noted as such, is also presented that is not in conformity with U.S. GAAP, with the presentation of operating income, operating margin and earnings per share before acquisition costs (primarily technology amortization and other related costs). All comparative figures are given on a year over year basis unless specified otherwise.


First Quarter

Total revenue in the 2003 first quarter was EUR 169.4 million. On a U.S. GAAP basis net income was EUR 22.3 million or EUR 0.20 per share in the 2003 first quarter compared to EUR 25.3 million or EUR 0.21 per share in the first quarter of 2002, representing a per share decrease of 5%. Net income excluding acquisition costs was EUR 24.2 million or EUR 0.21 per share in the 2003 first quarter, a 13% decrease on a per share basis compared to EUR 28.5 million or EUR 0.24 per share in the 2002 first quarter.

As anticipated, in comparison to the first quarter of 2002 total revenue decreased 7%, or increased by 1% on a constant currency basis. Software revenue was EUR 145.1 million in the 2003 first quarter and represented 86% of total revenue. In comparison to the year-ago quarter, software revenue decreased 9%, or 1% on a constant currency basis. Recurring software revenue continued to be an important component of software revenue and represented 55% of total software revenue in the 2003 first quarter, compared to 49% in the 2002 first quarter. Seats licensed in the quarter totaled 12,917 with 6,874 CATIA and 6,043 SolidWorks seats.

Services and other revenue increased 5% to EUR 24.3 million and represented 14% of total revenue. This growth in services revenue primarily reflected the increase in the number of PLM projects during the quarter.

Process-centric revenue, including PDM revenue, totaled EUR 138.9 million in the 2003 first quarter, decreasing 7% compared to EUR 149.8 million in the year-ago quarter. On a stand-alone basis, PDM revenue increased 17% to EUR 17.3 million in the 2003 first quarter, compared to EUR 14.8 million in the year-ago quarter and accounted for 10% of total revenue in the 2003 first quarter. PDM end-user software revenue totaled EUR 25.6 million in the 2003 first quarter. Design-centric revenue totaled EUR 30.5 million in the 2003 first quarter, a decrease of 7% compared with the year-ago period but in U.S. dollars design-centric revenue increased significantly, growing 15% year over year.

The Company had a strong financial position with cash and short-term investments totaling EUR 459.6 million and no bank debt at March 31, 2003.

Charles Edelstenne, Chairman of DS, stated, "In a difficult business environment, DS achieved results in line with its financial objectives. I believe we are well positioned to outperform the market in 2003 as we continue to focus on delivering solid financial results."

Bernard Charles, President and Chief Executive Officer, commented, "DS had a solid start to the year, with financial results better than market expectations. While the weak business climate and major currency movements of the last year have limited our overall revenue growth, our first quarter performance illustrates our focus on outperforming the industry and gaining market share in 2003. The adoption of our PLM V5 based solutions is progressing very well in every industry vertical as we continue to achieve new wins. Among these is a new PLM contract with Daewoo Heavy Industries & Machinery Limited, which we were pleased to announce this quarter. Our PDM business, with ENOVIA and SMARTEAM, continued to outperform its major competitors, delivering 25% revenue growth on a constant currency basis. Regarding the design-centric market, SolidWorks' results, with the 15% increase in revenues when stated in U.S. dollars, provide evidence that it continues to be the leader of its segment. The strong value proposition of our products is clearly visible, with our pricing generally firm amidst tough economic conditions.

"In a few days, we will be formally introducing our newest set of releases for the Product Lifecycle Management market, with our Version 5 Release 11 for CATIA, ENOVIA, SMARTEAM and DELMIA. Our V5R11 PLM portfolio delivers an unmatched degree of product realism and leading-edge solutions to address real-world industry needs of our customers."

Thibault de Tersant, Executive Vice President and CFO, commented, "Our financial results for the first quarter exceeded expectations for revenue, operating margin and earnings per share. Revenue came in at the high end of our objective, reflecting improved performance in the U.S. and at SolidWorks. Our continued focus on managing our costs as well as better than expected revenues contributed to the stronger than anticipated earnings and operating margin performance.

"Looking ahead, we continue to be cautious about the economy. For the second quarter, we believe a revenue objective of EUR 180-EUR 185 million is appropriate. We are reconfirming our revenue objective for the full year, with total revenue expected to be similar to or slightly higher than the EUR 774 million reported in 2002 and we are initiating a U.S. GAAP EPS objective for the year of approximately EUR 1.18 or 8% growth in EPS compared to 2002 U.S. GAAP EPS of EUR 1.09. Before acquisition costs, our EPS objective for the year is EUR 1.25, a 7% increase over 2002. We believe that our operating margin in 2003 could see an improvement of up to one percentage point over the operating margin achieved in 2002. In constant currencies we are reconfirming our revenue growth objective of approximately 7%. These objectives continue to assume a U.S. dollar to Euro exchange rate of $1.10 per EUR 1.00 as we outlined in our 2002 year-end press release."

The Company has repurchased approximately 1.4 million shares under its share repurchase program announced in the Company's year-end press release of February 6, 2003.

At the request of the French regulatory commission (COB), DS plans to make available on its website a press release stating DS French GAAP 2002 financial results, including a reconciliation of French GAAP to U.S. GAAP. 2002 revenue was EUR 774 million under French GAAP and U.S. GAAP. French GAAP 2002 EPS was EUR 0.18 lower than U.S. GAAP EPS, with the variance primarily accounted for by the different rules regarding goodwill amortization.


Bertrandt AG, a leading engineering services provider for the automotive industry, signed a PLM solutions contract with DS. Bertrandt selected ENOVIA Life Cycle Applications V5 for product data management to integrate it with the company's existing CATIA V5 solutions in order to standardize its entire product development platform.

Daewoo Heavy Industries & Machinery Limited (DHIM), a leading company in the machinery industry of Korea providing first-class products and services in construction equipment, industry vehicles, machine tools, factory automation systems, diesel engines, and defense systems, signed a PLM solutions contract. The newly acquired PLM solutions will help DHIM enhance product development and consolidate collaboration environments with CATIA V5 and ENOVIA LCA software developed by DS. PLM technologies will enable DHIM to maximize efficiencies surrounding the development of products such as forklifts and passenger car engines, and exploit the collaboration features afforded by PLM solutions.

Nilfisk-Advance, one of the world's leading suppliers of cleaning equipment, signed a contract for the expansion and consolidation of the company's PLM platform. Nilfisk-Advance development teams will benefit from faster product design and improved collaboration with software developed by DS, including CATIA V5 for collaborative product development, and ENOVIA Portal and SMARTEAM for collaborative lifecycle management.

ENAER, Chile's national aeronautical company, signed a PLM solutions contract, including both CATIA and SMARTEAM. These software solutions will enable ENAER to standardize its entire product development platform, while realizing significant cost reductions.

Vanderlande Industries of the Netherlands selected SMARTEAM as its enterprise PLM solution. Vanderlande Industries is a leading provider of advanced material handling and supply chain systems for distribution centers, airport baggage handling operations, sorting centers for express parcel services, and the manufacturing industry.

1 | 2 | 3 | 4  Next Page »

Review Article Be the first to review this article

Featured Video
System Designer/Engineer for Bluewater at Southfield, Michigan
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
Geospatial Analyst/Programmer for LANDIQ at Sacramento, California
Product Manager for CHA Consulting, Inc. at Boston, Massachusetts
GIS Data Analyst for CostQuest Associates, Inc. at Cincinnati, Ohio
Upcoming Events
Live SOLIDWORKS Event Hosted by Converge at 2482 Patterson Rd Unit 2 Grand Junction CO - May 22, 2018
ESPRIT World 2018 at Indianapolis Marriott Downtown 350 West Maryland Street Indianapolis IN - Jun 11 - 15, 2018
HxGN LIVE 2018 at The Venetian Las Vegas NV - Jun 12 - 15, 2018
IMTS2018 International Manufacturing Tech Show at McCormick Place Chicago IL - Sep 10 - 15, 2018
Kenesto: 30 day trial
SolidCAM: Break the Chains

Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — 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 PolicyAdvertise