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.
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
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
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
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
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
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
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.