Dassault Systèmes Reports Q2 2013 Earnings Ahead of Guidance, Reaffirms New Licenses Acceleration an

Dassault Systèmes Reports Q2 2013 Earnings Ahead of Guidance, Reaffirms New Licenses Acceleration and Upgrades FY EPS Objective

PARIS--(BUSINESS WIRE)-- Regulatory News:

Dassault Systèmes (Euronext Paris: #13065, DSY.PA)(Paris:DSY), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today reports IFRS unaudited financial results for the second quarter and first half ended June 30, 2013. These results were reviewed by the Company's Board of Directors on July 24, 2013.


Summary Highlights

(unaudited)

  • Q2 new licenses revenue up 4% in constant currencies
  • Non-IFRS EPS up 9% for Q2 and 10% for H1, to €0.83 and €1.61, respectively
  • First half cash flow from operations of €353 million
  • DELMIA becomes a leader in manufacturing operations management with Apriso acquisition
  • Unveiling V6 R2014, with IFWE Compass new Business User Experience and Private / Public Cloud integration

2013 Second Quarter Financial Summary

(unaudited)

 
In millions of Euros, except per share data   IFRS   Non-IFRS
       Change   

Change in cc*

       Change   Change in cc*
Q2 Total Revenue   522.0   4%   6%   521.9   4%   6%
Q2 Software Revenue   474.5   4%   6%   474.4   4%   6%
Q2 EPS   0.64   (4%)       0.83   9%    
Q2 Operating Margin   23.0%           30.0%        

*In constant currencies.

"We continue to deliver on our financial objectives thanks to increasing demand for our industry solutions experience and applications, despite the weak macro environment. Simultaneously, we are making significant advances to realize our 3DEXPERIENCE strategy," commented Bernard Charlès, Dassault Systèmes President and Chief Executive Officer.

"We indicated in February that 2013 would be a year with an ambitious R&D delivery plan as we move rapidly to position ourselves on the broader 3DEXPERIENCE market. This morning we are unveiling V6 R2014, which isoffering abusiness 3DEXPERIENCE platform, built on our V6 architecture, available on private or public Clouds, and embedding key technologies such as automatic dash-boarding and leveraging of Big Data. The 3DEXPERIENCE platform introduces a ground-breaking inclusive user interface which we have named the IFWE Compass, which will power not only all our applications, but also many 3rd party applications of all kinds. We believe it will represent a major industry milestone and look forward to working with select customers in advance of the general release V6 R2014X.

"On top of this, we are accelerating our strategy execution with acquisitions. Apriso, which has become part of the DELMIA application portfolio, following its acquisition in early July, is a perfect illustration of it. With this acquisition, we have become a major player of the Manufacturing Operations Management (MOM) market in 10 of the 12 industries we target, providing digital assets continuity for the run of manufacturing operations."

2013 Second Quarter Financial Summary

(unaudited)

         
In millions of Euros   

IFRS

   Non-IFRS
   Q2 2013   Q2 2012   

Change in cc*

   Q2 2013   Q2 2012   Change in cc*
Total Revenue   522.0   502.9   6%   521.9   502.9   6%
Software Revenue   474.5   457.8   6%   474.4   457.8   6%
Services and other Revenue   47.5   45.1   9%   47.5   45.1   9%
                         
PLM software Revenue   369.6   356.3   6%   369.5   356.3   6%
SOLIDWORKS software Revenue   104.9   101.5   6%   104.9   101.5   6%
                         
Americas   145.4   139.2   6%   145.3   139.2   6%
Europe   231.1   228.2   2%   231.1   228.2   2%
Asia   145.5   135.5   13%   145.5   135.5   13%

*In constant currencies.

  • Total revenue (IFRS and non-IFRS) increased 6% on growth in both software revenue and services and other revenue. Similarly, software revenue increased 6% (IFRS and non-IFRS) and represented 91% of total revenue. Services and other revenue increased 9% on growth in new V6 engagements. (All growth comparisons are in constant currencies.)
  • In Asia, total revenue (IFRS and non-IFRS) was higher by 13% on strong growth in software across a number of countries led by China and Korea. The Americas reported total revenue (IFRS and non-IFRS) growth of 6% driven by software revenue growth of 8%. In Europe, total revenue (IFRS and non-IFRS) increased 2%, reflecting the softer environment as well as a high comparison base to the 2012 second quarter where total revenue grew 19% in Europe. The Company noted that its three largest regions within Europe reported year-over-year software revenue growth in the 2013 second quarter. (All growth figures in constant currencies.)
  • New licenses revenue, as anticipated, was positive increasing year over year by 4% in constant currencies. Growth in new licenses revenue was led by Asia, with notable performances in China and Japan.
  • Recurring software revenue (IFRS and non-IFRS) increased 6% in constant currencies on growth in maintenance and rental revenue and reflected a return to normal seasonality for maintenance renewals for the first half of the year. The 2012 second quarter benefited from maintenance renewals activity due in the 2012 first quarter but whose purchase orders were processed in the second quarter.
  • PLM software revenue increased 6% (IFRS and non-IFRS). PLM software revenue growth reflected the soft environment with CATIA and ENOVIA stable compared to the year-ago period. Other PLM increased 24%, driven by the addition of GEOVIA, sharply higher results for DELMIA and continued strength for SIMULIA. (All growth comparisons are in constant currencies.)
  • SOLIDWORKS software revenue increased 6% (IFRS and non-IFRS) in constant currencies on growth in both new licenses and maintenance revenue. New SOLIDWORKS commercial seats licensed totaled 13,403 in the second quarter, representing a decrease of 3% compared to the year-ago quarter.
  • IFRS operating income totaled €119.8 million and the operating margin was 23.0%. On a non-IFRS basis, operating income increased 6.6% to €156.7 million and the operating margin increased to 30.0%, compared to 29.2% in the year-ago period.
  • IFRS net income per diluted share decreased 4.5% to €0.64 per share principally reflecting a one-time gain on the sale of a distribution activity in the 2012 second quarter as well as higher shared-based payment expense in the 2013 second quarter. On a non-IFRS basis net income per diluted share increased 9.2% to €0.83 per share on growth in operating income and financial revenue, with the effective tax rate of 34.2% slightly lower compared to the prior year period.

2013 First Half Financial Summary

(unaudited)

 
In millions of Euros, except per share data   IFRS   Non-IFRS
       Change   Change in cc*       Change   Change in cc*
2013 YTD Total Revenue   1,007.3   4%   6%   1,010.7   5%   7%
2013 YTD Software Revenue   920.9   5%   7%   924.3   5%   7%
2013 YTD EPS   1.22   (2%)       1.61   10%    
2013 YTD Operating Margin   22.2%           29.5%        

*In constant currencies.

   
 
In millions of EurosIFRS   Non-IFRS
   YTD 2013   YTD 2012   Change in cc*   YTD 2013   YTD 2012   Change in cc*
Total Revenue   1,007.3   965.3   6%   1,010.7   965.3   7%
Software Revenue   920.9   877.7   7%   924.3   877.7   7%
Services and other Revenue   86.4   87.6   1%   86.4   87.6   1%
                         
PLM software Revenue   713.4   677.8   7%   716.8   677.8   7%
SOLIDWORKS software Revenue   207.5   199.9   6%   207.5   199.9   6%
                         
Americas   278.8   265.6   6%   279.8   265.6   7%
Europe   446.5   432.3   4%   447.1   432.3   4%
Asia   282.0   267.4   10%   283.8   267.4   11%

*In constant currencies.

  • Total revenue grew 6% (IFRS) and 7% (non-IFRS) in constant currencies, with growth in both software and services and growth in all three regions. 2013 First Half results include the acquisition of Gemcom (part of GEOVIA) and the divestiture of Transcat PLM GmbH.
  • On a regional basis, Asia revenue increased 10% (IFRS) and 11% (non-IFRS) led by China and Korea. The Americas reported revenue growth of 6% (IFRS) and 7% (non-IFRS) with software revenue growing 10%. In Europe total revenue increased 4% (IFRS and non-IFRS), with mixed results by countries. High-growth countries grew 19% on strong growth in Latin America well supported by India, Russia, Korea and China, representing about 12% of total revenue. (All growth figures in constant currencies.)
  • Software revenue growth of 7% (IFRS and non-IFRS) was principally driven by recurring software revenue. Recurring software revenue increased 9% (IFRS and non-IFRS) from growth in maintenance from new licensing activity, strong renewal rates and growth in rental licensing. New licenses revenue increased 1%, with growth in Asia and the Americas offset by a decrease in new licenses revenue in Europe. In the 2012 First Half, new l
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