Dassault Q1 Revenue Up 6% to 307M Euro with 41M Profit
 PARIS,
France, Apr 29, 2008 - Dassault Systems (DS) (Nasdaq: DASTY; Euronext
Paris: #13065, DSY.PA) reported U.S. GAAP unaudited financial results for
the first quarter ended March 31, 2008.
Summary Financial Highlights
- Q1 GAAP total revenue up 12% on GAAP software revenue growth of 16%,
both in constant currencies
- Q1 non-GAAP total revenue up 10% on non-GAAP software revenue growth
of 14%, both in constant currencies
- Q1 EPS €0.34 on GAAP basis and €0.41 on non-GAAP basis
- DS reconfirms 2008 Business Outlook: reconfirms constant currencies
non-GAAP software and non-GAAP total revenue growth objectives for 2008;
reconfirms non-GAAP operating margin expansion objective for 2008;
adjusts non-GAAP EPS growth objective for 2008 to between 6% and 10%
growth solely due to US dollar weakness
First Quarter 2008 Financial Summary
In millions of
US GAAP
Non-GAAP
Euros,
Growth Growth Growth
Growth
in cc*
in cc*
except per
share data
Q1 Total
Revenue 307.4 6%
12% 307.9 4%
10%
Q1 Software
Revenue 269.1 9%
16% 269.6 8%
14%
Q1 EPS 0.34 21%
0.41 5%
Q1 Operating
Margin 17.3%
22.8%
* In constant currencies.
Bernard Charlès, Dassault Systems President and Chief
Executive Officer, commented, “Dassault Systems had a solid start to 2008,
meeting all of our financial objectives for revenue, operating margin and
earnings per share. We are seeing good dynamics in our core industries and
new verticals. In particular, we had a very strong quarter for CATIA
benefiting from broad-based demand among automotive and aerospace companies
and good execution in our Business Transformation Channel for large
accounts.
“This year will mark the final steps in the creation of our
PLM indirect channel. In this regard, our first quarter was an important
milestone as we moved ahead with the planned country transitions, including
Germany and Japan. In less than fifteen months, a remarkably short period of
time, we have developed an indirect PLM channel spanning more than 60
countries.
“Looking ahead, our number one focus is our customers -
helping our customers improve their product innovation, product quality,
business processes and investment returns. By doing this, we are confident
in our ability to continue to grow our PLM market footprint.”
First Quarter Financial Highlights
-
GAAP total revenue increased 12% in constant currencies
and non-GAAP total revenue increased 10% in constant currencies.
-
By geographic region and in constant currencies, total
GAAP revenue in Europe was up 13% (non-GAAP up 12%) followed by the
Americas with growth of 12% (non-GAAP up 10%) and Asia with growth of
10% (non-GAAP up 9%). From a regional perspective, software revenue grew
in double-digits in constant currencies in the Company’s three
geographic regions.
-
GAAP software revenue increased 16% in constant
currencies. Non-GAAP software revenue increased 14% on new licenses
revenue growth of 11% and non-GAAP recurring software revenue growth of
17%, all figures in constant currencies.
-
GAAP PLM software revenue increased 15% in constant
currencies. Non-GAAP PLM software revenue growth of 14% in constant
currencies was led by CATIA with non- GAAP software revenue growth of
21% in constant currencies, on strong dynamics with automotive and
aerospace companies, channel capacity increases and the inclusion of
ICEM. CATIA new seats licensed in the first quarter increased 7% to
8,325 seats. ENOVIA non-GAAP software revenue performance in the first
quarter increased 1% in constant currencies, on a strong year-ago
comparison.
-
GAAP Mainstream 3D software revenue increased 18% in
constant currencies. Non- GAAP Mainstream 3D software revenue increased
15% in constant currencies on new SolidWorks seat growth of 15% (13,536
new seats licensed) and strong growth in maintenance revenue.
-
Services and other revenue, representing 12% of total
revenue, decreased approximately 10% in constant currencies. These
results largely reflect the winding down of certain historical channel
management activities and related fee revenue which will continue over
the course of 2008 as the Company completes the formation of its
indirect PLM channel.
-
GAAP operating margin was 17.3%. Non-GAAP operating
margin increased 70 basis points to 22.8%, compared to 22.1% in the
year-ago period.
-
GAAP earnings per diluted share increased 21%. Non-GAAP
earnings per diluted share increased 5% to €0.41 reflecting an increase
in non-GAAP operating income of 8% offset by a significant decrease in
financial revenue and other, net. While net interest income increased
26%, quarter-end currency exchange losses largely offset this increase.
-
New wins in the first quarter included: Skanska in
construction in Europe; Bell Helicopter in aerospace and Leviton in high
tech in the Americas; and Tata Motors in automotive in Asia. Re-orders
included: Gulfstream and Spirit in aerospace and Northrop Grumman in
shipbuilding in the Americas, and Honda, Mitsubishi and Toyota in
automotive in Asia.
-
During the first quarter, DS repurchased 961,986 common
shares for a total cost of approximately €35 million.
Cash flow and other financial highlights
Net operating cash flow was €88.4 million for the first
quarter. Cash and short-term investments totaled €682.9 million and
long-term debt totalled €202.7 million at March 31, 2008.
Annual Shareholders’ Meeting date and cash dividend
recommendation
The Annual Shareholders’ Meeting has been scheduled for May
22, 2008. The Board of Directors has recommended an annual cash dividend
equivalent to €0.46 per share, representing about €54 million in the
aggregate, for the fiscal year ended December 31, 2007, and a 5% increase
from last year’s dividend per share. The dividend is subject to approval by
shareholders at the Annual Shareholders’ Meeting.
Other Corporate Announcements
On April 8th, 2008 DS announced that it has been named the
leader in several categories of CIMdata’s newly published “2008 PLM Market
Analysis Report” and that 2007 was DS’ third consecutive year at the top of
the industry mindshare rankings. In the report, CIMdata ranked Dassault
Systems the leader in overall PLM industry market presence among the
industry’s Mindshare Leaders – rankings which reflect Dassault Systems’
leadership in both the “mainstream PLM” and more expansive “comprehensive
PLM” market sectors. CIMdata defines a mindshare leader as the company
end-users most readily identified with the term “PLM”.
Business Outlook
Thibault de Tersant, Senior Executive Vice President and
CFO, commented, “Our 2008 outlook remains good and essentially unchanged
from when we released it in February. We, therefore, are reconfirming our
2008 non-GAAP constant currency objectives for total revenue growth of about
10% and slightly increasing our software revenue growth to about 12% to 13%.
We are also reconfirming our objective to increase our 2008 non-GAAP
operating margin by 80 to 130 basis points in comparison to 2007. We are
reducing our 2008 non-GAAP earnings per share growth objective to a range
between 6% and 10% solely to reflect the severity of the US dollar weakness
as our overall business outlook remains unchanged.”
The Company’s objectives are prepared and communicated only
on a non-GAAP basis and are subject to the cautionary statement set forth
below:
-
Second quarter 2008 non-GAAP total revenue objective of
about €315 to €320 million and non-GAAP EPS of about €0.44 to €0.46;
-
2008 non-GAAP total revenue objective reiterated at
about 10% growth in constant currencies; 2008 non-GAAP software revenue
objective reiterated at about 12% to 13% growth in constant currencies;
-
2008 non-GAAP EPS objective adjusted down solely on U.S.
dollar weakness from previous guidance to about €2.10 to €2.17,
representing about 6% to 10% growth;
-
2008 non-GAAP operating margin objective reiterated at
about 27% to 27.5%;
-
Objectives based upon exchange rate assumptions for the
2008 second quarter of US$1.60 per €1.00 and JPY 160 per €1.00 and 2008
full year exchange rate assumptions of US$1.57 per €1.00 and JPY 159 per
€1.00.
-
The constant currency revenue objective leads to a
reported 2008 non-GAAP revenue range of about €1.325 to €1.340 billion
based upon the above assumed currency exchanges rates for 2008;
The non-GAAP objectives set forth above do not take into
account the following accounting elements: deferred revenue write-downs
estimated at approximately €1 million for 2008; stock-based compensation
expense estimated at approximately €18 million for 2008; amortization of
acquired intangibles estimated at approximately €48 million for 2008. The
above objectives do not include any impact from one-time costs and one-time
gains related to the anticipated DS global headquarters’ relocation in 2008.
These estimates also do not include any new stock option or share grants, or
any new acquisitions completed after April 29, 2008.
Recent Business News Highlights
-
On April 3rd, DS announced the new Abaqus release for
CATIA V5.
-
On March 12th, DS launched PLM solutions for Life
Sciences.
-
On March 3rd, DS unveiled Dymola 7.0, its
next-generation Modelica-based multi-engineering modeling and simulation
solution.
Webcast and conference call information
Dassault Systems will host a webcast and a conference call
today, Tuesday, April 29, 2008. Management will host the webcast at 8:15 AM
London time/9:15 AM Paris time and will then host the conference call at
3:00 PM CET/2:00 PM London time/9:00 AM New York time. The webcast and
conference call will be available via the Internet by accessing
http://www.3ds.com/corporate/investors/. Please go to the website at
least fifteen minutes prior to the webcast or conference call to register,
download and install any necessary audio software. T
he webcast and conference call will be archived for 30 days.
Additional investor information can be accessed at
http://www.3ds.com/corporate/investors/ or by calling Dassault Systems’
Investor Relations at 33.1.40.99.69.24.
Non-GAAP financial information
Readers are cautioned that the supplemental non-GAAP
information presented in this press release is subject to inherent
limitations. It is not based on any comprehensive set of accounting rules or
principles and should not be considered as a substitute for U.S. GAAP
measurements. Also, our supplemental non-GAAP financial information may not
be comparable to similarly titled non-GAAP measures used by other companies.
Further specific limitations for individual non-GAAP measures, and the
reasons for presenting non-GAAP financial information, are set forth in the
Company’s annual report for the year ended December 31, 2007 on Form 20-F
filed with the SEC on April 4, 2008 and in the paragraph below.
In addition to the individual non-GAAP measures described in
our most recent Form 20-F, our unaudited U.S. GAAP 2008 quarterly financial
statements will reflect income and expenses related to the relocation of our
corporate headquarters during 2008. In our supplemental non-GAAP financial
information, we exclude the income and expense effects directly attributable
to this corporate headquarters relocation because of their unusual nature.
As a result, we believe that our supplemental non-GAAP financial information
helps investors better understand the current trends in our operating
performance. However, the one-time effects of our corporate headquarters
relocation are components of our income and expenses for 2008 and by
excluding these effects, the supplemental non-GAAP financial information
understates the net impact to our net income in 2008. These corporate
headquarters relocation effects are not recurring, and we do not expect such
effects to occur as part of our normal business on a regular basis.
To compensate for these limitations, the supplemental
non-GAAP financial information should be read not in isolation, but only in
conjunction with our consolidated financial statements prepared in
accordance with U.S. GAAP.
The tables on pages 10 and 11 of this press release set
forth our supplemental non-GAAP revenue, non-GAAP operating income, non-GAAP
operating margin, non-GAAP net income and non-GAAP diluted earnings per
share, which exclude the effect of adjusting the carrying value of acquired
companies’ deferred revenue, the expenses for the amortization of acquired
intangible assets and stock-based compensation expense (in each case, as
explained in our Form 20-F), as well as the effects attributable to our
corporate headquarters relocation (as explained above). The tables also set
forth the most comparable GAAP financial measure and a reconciliation of the
GAAP and non-GAAP information.
Information in constant currencies
When we believe it would be helpful for understanding trends
in our business, we provide percentage increases or decreases in our revenue
(in both US GAAP and on a non-GAAP basis) to eliminate the effect of changes
in currency values, particularly the U.S. dollar and the Japanese yen,
relative to the euro. When trend information is expressed herein "in
constant currencies", the results of the "current" period have first been
recalculated using the average exchange rates of the comparable period in
the preceding year, and then compared with the results of the comparable
period in the preceding year.
DASSAULT SYSTEMES CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (U.S. GAAP)
(in millions of Euro, except per share data, unaudited)
Three months ended
March 31, March 31,
2008 2007
New licenses revenue
100.7 95.8
Periodic licenses,
maintenance and product
development revenue
168.4 150.0
Software revenue
269.1 245.8
Services and other
revenue
38.3 45.1
Total Revenue
€ 307.4 € 290.9
Cost of software revenue
(excluding amortization
of acquired intangibles)
14.6 12.7
Cost of services and
other revenue
35.6 40.2
Research and development
73.7 76.5
Marketing and sales
92.5 83.1
General and administrative
26.4 21.4
Amortization of acquired
intangibles*
11.5 10.9
Total Operating Expenses
€ 254.3 € 244.8
Operating Income
€ 53.1 € 46.1
Financial revenue and other, net 0.2
3.0
Income before income taxes
53.3 49.1
Income tax expense
(12.7) (16.2)
Minority interest
0.0 0.0
Net Income
€ 40.6 € 32.9
Basic net income per share
0.35 0.28
Diluted net income per share
€ 0.34 € 0.28
Basic weighted average
shares outstanding (in
millions)
116.9 115.6
Diluted weighted average
shares outstanding (in
millions)
119.6 118.8
* Including relocation of
headquarters
U.S. GAAP revenue variation as reported and in constant
currencies
Three months ended March 31, 2008
Variation* Variation in cc**
GAAP Revenue
6%
12%
GAAP Revenue by activity
Software Revenue
9%
16%
Services and other Revenue (15%)
(10%)
GAAP Software Revenue
by segment
PLM software revenue
9%
15%
of which CATIA software
revenue
15%
21%
of which ENOVIA software
revenue
(1%)
6%
Mainstream 3D software
revenue
11%
18%
GAAP Revenue by geography
Americas
(2%) 12%
Europe
13%
13%
Asia
4%
10%
* Variation compared to the same period in the prior year.
** In constant currencies.
DASSAULT SYSTEMES CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. GAAP)
(in millions of Euro, unaudited)
March 31, Dec. 31,
2008 2007
TOTAL ASSETS
Cash and short-term investments
682.9 626.6
Accounts receivable, net
283.0 320.0
Other assets
968.8 1,004.5
Total Assets
€ 1,934.7 € 1,951.1
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
Long-term debt
202.7 202.9
Other liabilities
585.4 552.4
Shareholders' equity
1,146.6 1,195.8
Total Liabilities and
Shareholders' equity
€ 1,934.7 € 1,951.1
DASSAULT SYSTEMES CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS (U.S. GAAP)
(in millions of Euro, unaudited)
Three months ended
March 31, March 31, Variation
2008 2007
Net Income
40.6 32.9
7.7
Depreciation and
Amortization of Property,
Plant & Equipment
6.0 5.9
0.1
Amortization of
intangible assets
12.1 12.1
0.0
Other Non Cash P&L Items (1.7)
0.0 (1.7)
Changes in working capital 31.4
57.5 (26.1)
Net Cash provided by
operating activities
88.4 108.4
(20.0)
Acquisition of assets
and equity, net of cash (10.3)
(6.7) (3.6)
Sale of assets
and equity
36.2 0.0
36.2
Loans and others
(0.2) 0.0
(0.2)
Net Cash provided by
(used in) investing
activities
25.7 (6.7)
32.4
Borrowings
0.0 0.0
0.0
Share repurchase
(35.0) 0.0
(35.0)
DS Stock Option and
preferred Stock Exercise 4.2
5.2 (1.0)
Cash dividend paid
0.0 0.0
0.0
Payments on capital
lease obligations
0.0 (0.4)
0.4
Net Cash provided by
(used in) financing
activities (1)
(30.8) 4.8
(35.6)
Effect of exchange
rate changes on
treasury (2)
(27.0) (3.6) (23.4)
Increase in treasury (2) 56.3
102.9 (46.6)
Treasury (2) at beginning
of period
626.6 459.2
Treasury (2) at end
of period
682.9 562.1
(1) Excluding changes in short-term investments. (2)
Treasury includes cash, cash equivalents and short-term investments
DASSAULT SYSTEMES
NON-GAAP KEY FIGURES
(in millions of Euro, except per share data, headcount and exchange rates,
unaudited)
Non-GAAP key figures exclude the effects of adjusting the
carrying value of acquired companies’ deferred revenue, amortization of
acquired intangible assets, stock-based compensation expense and the effects
related to the corporate headquarters relocation.
Comparable U.S. GAAP financial information and a
reconciliation of the GAAP and non-GAAP measures are set forth in the
preceding tables.
Three months ended
March March Variation Variation
31,2008 31,2007
in cc*
Non-GAAP Revenue € 307.9 €
294.7 4%
10%
Non-GAAP Revenue
breakdown by activity
Software Revenue 269.6
249.6 8%
14%
of which New Licenses
Revenue
100.7 95.8 5%
11%
of which Periodic
Licenses, Maintenance
and Product Development
Revenue
168.9 153.8 10%
16%
Services and other
Revenue
38.3 45.1 (15%)
(10%)
Non-GAAP Software
Revenue breakdown by
segment
PLM software Revenue 202.4 187.3
8% 14%
of which CATIA software
Revenue
122.7 106.3 15%
21%
of which ENOVIA
software Revenue 38.3
40.9 (6%)
1%
Mainstream 3D software
Revenue
67.2 62.3 8%
15%
Non-GAAP Revenue
breakdown by geography
Americas
94.1 98.0 (4%)
10%
Europe
138.9 124.2 12%
12%
Asia
74.9 72.5 3%
9%
Non-GAAP Operating
Income
€ 70.2 € 65.1 8%
Non-GAAP Operating
Margin
22.8% 22.1%
Non-GAAP Net Income 48.7
46.3 5%
Non-GAAP Diluted
Net Income Per Share € 0.41 € 0.39
5%
Closing headcount 7,628
6,967
Average Rate USD
per Euro
1.50 1.31 14%
Average Rate JPY
per Euro
157.7 156.5 1%
* In constant currencies.
For more
information, visit http://www.3ds.com.
-----------
If news like this is important to you, sign up for our
TenLinks Daily at
www.tenlinks.com/NEWS/sub_unsub.htm.
Related News
Jul 31 - Dassault Q2 Revenue Up 7% to 326M Euro with 42.5M Profit
Jul 9 - Dassault Renews R&D Support for K-Challenge
Jul 8 - Dassault Releases ENOVIA High Tech Accelerator
Jul 8 - Dassault Gets Microsoft's ISV Technology Partner Award
Jul 7 - Stephane Massas Joins Dassault as VP HR Europe
Jul 7 - Dassault, Sogeti Signs Industry Solution Partnership
Jul 2 - Dassault Spins Off France Sales Division to Keonys
Jun 20 - Dassault Updates ENOVIA Materials Compliance Central
Jun 10 - Dassault Launches Virtual Reality, 3D Entertainment Contest
May 29 - Dassault Releases V6 PLM 2.0 Platform
May 22 - Dassault Launches 'DS Campus' Website
May 1 - Innovative Vehicle Contest Given 20 CATIA, DELMIA Seats
Apr 29 - Dassault Q1 Revenue Up 6% to 307M Euro with 41M Profit
Apr 8 - Sweden's Danatec Selects Dassault DELMIA PLM Express
Apr 7 - Dassault, AREVA NP to Facilitate Nuclear Plant Maintenance
Apr 3 - Dassault Picks Dors-Meary to Lead Development, Resources
Mar 12 - Dassault Launches ENOVIA PLM for Life Sciences
Feb 28 - Fairfield University to Use Dassault DELMIA
Feb 19 - Dassault Unveils Virtools 4.1 for Real Time 3D Applications
Feb 19 - Dassault, Zymmetry Partners for Footwear, Apparel Industry
Jan 24 - Dassault Announces PLM 2.0 on V6 Platform
Jan 23 - Dassault Launches 3DLive for Multi-CAD PLM
SMARTEAM News
SIMULIA Press Releases
ENOVIA Press Releases
Source: Material used in press releases is often supplied by external
sources and used as is.
|
