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PARIS–(Business Wire)–
Regulatory News:
Dassault Systèmes (DS) (Paris:DSY) (Euronext Paris: #13065, DSY.PA) reports IFRS
unaudited financial results for the second quarter and six months ended June 30,
2010. These results were reviewed by the Company`s Board of Directors on July
27, 2010.
Second Quarter Summary Highlights
* 2010 second quarter earnings and operating margin above DS` objectives
* Net operating cash flow of €132 million
* EPS growth of 82% reaching €0.40 (IFRS) and 57% reaching €0.58 (Non-IFRS)
* IBM PLM integration well on track
* Expanding into new addressable market with Exalead acquisition
* DS upgrades 2010 objectives to reflect recent acquisitions, currency
fluctuations and Q2 overachievement
Second Quarter Financial Summary
In millions of Euros, except per share data IFRS Non-IFRS
Change Change in Change Change in
cc* cc*
Q2 Total Revenue 385.6 24% 18% 391.9 26% 20%
Q2 Software Revenue 346.4 28% 22% 352.7 30% 24%
Q2 EPS 0.40 82% 0.58 57%
Q2 Operating Margin 18.7% 27.9%
*In constant currencies.
“Dassault Systèmes had a very solid second quarter, with sales above the high
end of our revenue target excluding any currency benefits, and earnings and
operating margin results significantly above our objectives, thanks in large
measure to execution at both the sales and operational levels. In the Mainstream
3D market, SolidWorks delivered strong results with new licenses up 20%, showing
an encouraging business trend in the SMB market” commented Bernard Charlès,
Dassault Systèmes President and Chief Executive Officer.
“On top of the smooth integration of IBM PLM, the second quarter was a very
dynamic period with new strategic customer partnerships with leading, global
companies including Michelin and Gap Inc., and more on the way.We added a new
addressable market in search-based applications with the Exalead acquisition,
expanded V6 PLM with a new release and with the Geensoft acquisition to advance
in design and simulation for smart products.
“Looking forward, we are focused on the significant opportunity ahead of us to
leverage both our direct and indirect sales resources to expand our presence
across the eleven industries Dassault Systèmes serves.”
DS completed the acquisition of the IBM PLM operations on March 31, 2010 and
these operations were merged into the Company`s operations within its PLM
business segment for the three-month period commencing April 1, 2010. Due to the
deep integration of former IBM PLM employees into the Company`s operations,
involving many changes in territories and responsibilities, it is not possible
to track the IBM PLM revenue and profit since the acquisition date. As
previously disclosed, the IBM PLM share of DS software revenue was estimated at
approximately €53 million in the second quarter of 2009. The IBM PLM acquisition
was a significant contributor to growth in direct sales and sales related
headcount and in turn to revenue, expenses and earnings during the 2010 Second
Quarter and First Half in comparison to the respective 2009 periods.
Second Quarter 2010 Financial Review
In millions of Euros IFRS Non-IFRS
Q2 2010 Q2 2009 Change in Q2 2010 Q2 2009 Change in
cc* cc*
Total Revenue 385.6 310.9 18% 391.9 311.2 20%
Software Revenue 346.4 271.3 22% 352.7 271.6 24%
Services and other Revenue 39.2 39.6 (6%) 39.2 39.6 (6%)
PLM software Revenue 268.4 206.5 24% 274.7 206.8 27%
Mainstream 3D software Revenue 78.0 64.8 14% 78.0 64.8 14%
Americas 116.2 96.5 12% 117.2 96.6 13%
Europe 173.7 144.2 20% 175.1 144.2 21%
Asia 95.7 70.2 22% 99.6 70.4 27%
*In constant currencies.
* In constant currencies, IFRS total revenue increased 18% (24.0% as reported)
and non-IFRS total revenue increased 20% (25.9% as reported) on in-line new
licenses revenue performance and higher than anticipated growth in recurring
software revenue.
* IFRS new license revenue increased 23.1% and 17% in constant currencies.
Second quarter new licenses revenue and growth comparisons reflected some delays
in transaction closings in the Company`s PLM business segment, as anticipated in
relation to its integration of the IBM PLM organization.
* IFRS recurring software revenue increased 30.0% and 24% in constant
currencies. Non-IFRS recurring software revenue increased 33.0% and 27% in
constant currencies. The growth reflected a further improvement in subscription
revenue trends as renewal rates are back to historical levels across the
Company. In addition, second quarter recurring software results also included
some one-time, catch-up payments by customers for maintenance renewals.
* Representing approximately 10% of total revenue, service and other revenue,
which normally lag the improvement in new activity, decreased 6% (non-IFRS) in
constant currencies, compared to a decrease of 14% in the 2010 first quarter.
The non-IFRS service and other revenue gross margin was 9.2%, representing a
significant sequential improvement.
* IFRS PLM software revenue increased 30.0% and 24% in constant currencies and
non-IFRS PLM software revenue increased 32.8% and 27% in constant currencies.
* Mainstream 3D (IFRS and non-IFRS) software revenue increased 20.4% and 14% in
constant currencies. New seats licensed increased 20% to 9,770 and the average
SolidWorks seat price increased 3% in constant currencies.
* The Company`s IFRS operating margin expanded 510 basis points. The non-IFRS
operating margin increased 600 basis points to reach 27.9% from 21.9% in the
2009 second quarter. The operating margin came in above the Company`s objective
principally reflecting higher than anticipated revenue results, higher cost
control and a one-time reclassification caused by a taxation change in France.
* IFRS earnings per diluted share increased 82% to €0.40 up from €0.22 in the
2009 second quarter. Non-IFRS earnings per diluted share increased 57% to €0.58
compared to €0.37 in the year-ago period, principally due to strong revenue
growth and operating margin expansion, offset in part by a higher non-IFRS
effective income tax rate.
2010 First Half Financial Summary
In millions of Euros, except per share data IFRS Non-IFRS
Change Change in Change Change in
cc* cc*
YTD 2010 Total Revenue 697.5 12% 10% 703.9 13% 11%
YTD 2010 Software Revenue 626.1 15% 13% 632.5 16% 14%
YTD 2010 EPS 0.72 57% 1.01 36%
YTD 2010 Operating Margin 17.4% 25.4%
*In constant currencies.
In millions of Euros IFRS Non-IFRS
YTD 2010 YTD 2009 Change in YTD 2010 YTD 2009 Change in
cc* cc*
Total Revenue 697.5 620.6 10% 703.9 621.9 11%
Software Revenue 626.1 543.1 13% 632.5 544.4 14%
Services and other Revenue 71.4 77.5 (10%) 71.4 77.5 (10%)
PLM software Revenue 477.2 407.2 15% 483.6 408.5 16%
Mainstream 3D software Revenue 148.9 135.9 7% 148.9 135.9 7%
Americas 207.9 193.9 7% 209.0 194.4 7%
Europe 314.6 281.8 11% 316.0 281.9 12%
Asia 175.0 144.9 12% 178.9 145.6 14%
*In constant currencies.
* In constant currencies, IFRS total revenue increased 10% (12.4% as reported)
and non-IFRS total revenue increased 11% (13.2% as reported).
* By geographic region and in constant currencies, IFRS revenue in Europe
increased 11% (increased 11.6% as reported), the Americas increased 7%
(increased 7.2% as reported) and Asia increased 12% (increased 20.8% as
reported).
* IFRS PLM software revenue increased 17.2% and 15% in constant currencies and
non-IFRS PLM software revenue increased 18.4% and 16% in constant currencies.
* Mainstream 3D (IFRS and non-IFRS) software revenue increased 9.6% and 7% in
constant currencies. New SolidWorks commercial seats licensed during the 2010
First Half increased 14% to 19,613 seats.
* IFRS recurring software revenue, comprised of periodic licenses and
maintenance revenue, increased 14.2% as reported and 12% in constant currencies.
Similarly, non-IFRS recurring software revenue increased 13% in constant
currencies to €470.7 million for the 2010 First Half compared to €407.8 million
in the prior year period.
* Diluted net income per share increased 56.5% principally reflecting an
increase in operating income of 47.1%. Non-IFRS net income per diluted share
increased 36.5% to €1.01 per share from €0.74 per share, principally reflecting
an increase in non-IFRS operating income of 39.0%.
Cash Flow and Other Financial Highlights
IFRS net operating cash flow was €132.3 million for the 2010 second quarter, up
from €81.0 million in the year-ago period. IFRS net operating cash flow was
€265.6 million for the first half ended June 30, 2010, compared to €177.3
million for the 2009 First Half. In the second quarter 2010, the Company
completed acquisitions totaling €144 million and paid cash dividends aggregating
€54.5 million.
The Company`s net financial position, representing cash and short-term
investments of €1.02 billion, net of long-term debt of €306.8 million, was
€714.1 million, compared to a net financial position of €858.0 million at
December 31, 2009.
Annual Shareholders` Meeting Approved Cash Dividend Payment
The Annual Shareholders` Meeting was held on May 27, 2010. At the meeting
shareholders approved for the fiscal year ended December 31, 2009 the payment of
an annual cash dividend equivalent to €0.46 per share, equal to the prior year.
The Company has consistently paid annual cash dividends since its initial public
offering in 1996. The cash dividend was paid on June 17, 2010.
Summary Business and Corporate Highlights
DS Outlined New Five-Year Financial Objectives at Capital Markets Day, June 15,
2010. DS publicly outlined its growth plan including targeting a 30% non-IFRS
margin and the five-year goal to more than double non-IFRS EPS in comparison to
2009.
Dassault Systèmes Acquired Exalead, a France-based company providing Search
Platforms and Search-Based Applications (SBA) for consumer and business users.
Every month, over 100 million people rely on Exalead for information search,
access and reporting, including people in companies like Sanofi-Aventis and
World Bank for business use, and Friendster, Lagardère Active and ViaMichelin
for contextual consumer search. Exalead provides the industry`s only platform
designed from the ground up to apply advanced semantic processing to Web-scale
data volumes and usage. Exalead brings unique scalability, agility and usability
to industries such as Banking, Retail, Publishing, Business Services, Life
Sciences and Consumer Services where easy access to information is essential.
The acquisition price was approximately €135 million.
DS Advances Systems Strategy with the Acquisition of Geensoft, a France-based
company. Geensoft provides embedded systems development tools and professional
services that help engineering teams in the aerospace, automotive, defense,
energy, industrial automation, medical and transportation industries to more
efficiently manage their engineering processes as well as design, verify and
validate their model-based embedded systems applications. With Geensoft, the
Company`s V6 portfolio is expanded by adding the capacity to model and generate
the entire vehicle control software system, allowing a validation loop by
connecting the physical equipment with the digital mock-up. The purchase price
was approximately €5.5 million.
The Company launched V6R2011, the latest release of its PLM 2.0 platform as part
of its Lifelike Experience strategy. The release includes new advances in
collaborative creation with 874 new features, additional collaborative
innovation enhancements, as well as an entirely new V6 Academia solution. It
includes CATIA advancements in systems functionality and content, such as
various automotive-focused Modelica libraries, as well as Lifelike Human and
Lifelike Conveyor, two new DELMIA production solutions for enterprise resource
modeling. SIMULIA V6R2011 delivers to designers the power of Abaqus technologies
for complex assemblies. 3DVIA Composer continues to extend its competitive
advantage in 3D lifelike technical publishing experience. V6R2011 also updates
Dassault Systèmes` PLM Express offer with new key attributes for the mid-market.
V6R2011 features new capabilities in collaborative innovation, extending the
depth of ready-to-use solutions in its eleven target industries, including
consumer product goods, fashion, high tech, aerospace & defense, and automotive.
These ENOVIA-based solutions deliver a strategic foundation for all communities
to participate in the product lifecycle online.
DS introduced Abaqus Release 6.10 from SIMULIA with New Multiphysics Technology.
In response to expanding industry demand for realistic simulation, the new
release delivers more than 100 customer-requested enhancements for modeling,
performance, usability, visualization, multiphysics, and core mechanics. Abaqus
6.10 introduces a new multiphysics capability for performing Computational Fluid
Dynamics (CFD) simulation.
DS Has Launched Open Online DraftSight Community. DS has made available
DraftSight.com, aimed at providing all computer-aided design (CAD) users access
to new services and products to unlock valuable data stored in billions of DWG
files. Building on Dassault Systèmes` vision of enabling social innovation, the
launch of this community comes as a direct result of customer demand and marks
the next step in bringing DWG file management and storage into an easy-to-use,
online, service-oriented environment.
Business Outlook
Thibault de Tersant, Senior Executive Vice President and CFO, commented, “The
quarter unfolded largely as we expected from a revenue perspective. We saw some
upside thanks to our recurring software revenue, which has reached a positive
inflection point somewhat earlier than we had estimated. Our customers are
moving back to their historical subscription renewal levels, confirming the
value our software brings to them.Our bottom-line performance was particularly
gratifying, with a non-IFRS operating margin of 28% and an EPS growth of 57%,
coming in above our objectives thanks principally to the continued positive
impact of our 2009 efficiency plan and our revenue performance.
“Looking ahead we are reconfirming our second half outlook and adding to it the
recently completed acquisitions, leading to an acceleration of revenue growth to
about 22% to 25% in constant currencies for the 2010 second half. Taking into
account the second quarter over-performance leads to an updated full year
non-IFRS total revenue growth objective of 16% to 18% in constant currencies.
Our objectives are consistent with our view of a gradual improvement in the
economic environment.
“With respect to our earnings and operating margin objectives, we are now
targeting non-IFRS EPS growth of 21% to 26% to reflect our continued focus on
driving efficiencies across the business and benefiting from the progress made
to date, and to take into account the currency evolution.”
The Company`s current objectives are the following:
* Third quarter 2010 non-IFRS total revenue objective of about €365 to €375
million, non-IFRS operating margin of about 25% to 26% and non-IFRS EPS of about
€0.52 to €0.56;
* 2010 non-IFRS revenue growth objective range of about 16% to 18% in constant
currencies; (€1.495 to €1.515 billion based upon the 2010 currency exchange rate
assumptions below from €1.455 to €1.475 billion previously);
* 2010 non-IFRS operating margin of about 26% to 27% from about 26%;
* 2010 non-IFRS EPS range of about €2.25 to €2.35, representing growth of about
21% to 26%; (previous range €2.19 to €2.28)
* Objectives are based upon exchange rate assumptions for the 2010 third quarter
of US$1.37 per €1.00 and JPY128 per €1.00 and a full year average of US$1.35
($1.40 previously) per €1.00 and JPY125 (JPY130 previously) per €1.00.
The Company`s objectives are prepared and communicated only on a non-IFRS basis
and are subject to the cautionary statement set forth below.
The non-IFRS objectives set forth above do not take into account the following
accounting elements and are estimated based upon the 2010 currency exchange
rates above: deferred revenue write-downs estimated at approximately €17 million
for 2010; share-based compensation expense estimated at approximately €21
million for 2010 and amortization of acquired intangibles estimated at
approximately €66 million for 2010. The above objectives do not include any
impact from other operating income and expense, net principally comprised of,
acquisition, integration and restructuring expenses. These estimates do not
include any new stock option or share grants, or any new acquisitions or
restructurings completed after July 29, 2010.
Webcast and Conference Call Information
Dassault Systèmes will host a webcast and a conference call today, Thursday,
July 29, 2010. Management will host a webcast at 9:30 AM London time/10:30 AM
Paris time and will then host the conference call at 9:00 AM New York time/2:00
PM London time/3:00 PM Paris time. The webcast and conference call will be
available via the Internet by accessing http://www.3ds.com/company/finance/.
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.
The webcast and conference call will be archived for 30 days.
Additional investor information can be accessed at
http://www.3ds.com/company/finance/ or by calling Dassault Systèmes` Investor
Relations at 33.1.61.62.69.24.
Forward-looking Information
Statements herein that are not historical facts but express expectations or
objectives for the future, including but not limited to statements regarding the
Company`s non-IFRS financial performance objectives, are forward-looking
statements.
Such forward-looking statements are based on DS management’s current views and
assumptions and involve known and unknown risks and uncertainties. Actual
results or performances may differ materially from those in such statements due
to a range of factors. In preparing such forward-looking statements, the Company
has in particular assumed an average U.S. dollar to euro exchange rate of
US$1.35 per €1.00 and an average Japanese yen to euro exchange rate of JPY125 to
€1.00 for 2010; however, currency values fluctuate, and the Company`s results of
operations may be significantly affected by changes in exchange rates. The
Company has tried to factor in the potential impact of the current global
economic environment on its 2010 third quarter and full year objectives, but
conditions may not improve as the Company has anticipated or could worsen.
Further the Company has assumed that its increased responsibility for its direct
PLM sales, in particular resulting from the integration of the IBM PLM
acquisition which was completed on March 31, 2010, and the resulting commercial
and management challenges, will not cause it to incur substantial unanticipated
costs and inefficiencies. The Company`s actual results or performance may also
be materially negatively affected by the current global economic crisis,
difficulties or adverse changes affecting its partners or its relationships with
its partners, including the Company`s longstanding, strategic partner, IBM; new
product developments and technological changes; errors or defects in its
products; growth in market share by its competitors; and the realization of any
risks related to the integration of IBM PLM within DS and of any newly acquired
company and internal reorganizations. Unfavorable changes in any of the above or
other factors described in the Company`s regulatory reports, including the
Document de référence, as filed with the French “Autorité des marchés
financiers” (AMF) on April 1, 2010, could materially affect the Company`s
financial position or results of operations.
Non-IFRS Financial Information
Readers are cautioned that the supplemental non-IFRS (previously referred to as
“adjusted IFRS”) 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 IFRS
measurements. Also, the Company`s supplemental non-IFRS financial information
may not be comparable to similarly titled non-IFRS measures used by other
companies. Further specific limitations for individual non-IFRS measures, and
the reasons for presenting non-IFRS financial information, are set forth in the
Company`s annual report for the year ended December 31, 2009 included in the
Company`s 2009 Document de référence filed with the AMF on April 1, 2010.
In the tables accompanying this press release the Company sets forth its
supplemental non-IFRS figures for revenue, operating income, operating margin,
net income and diluted earnings per share, which exclude the effect of adjusting
the carrying value of acquired companies` deferred revenue, stock-based
compensation expense, the expenses for the amortization of acquired intangible
assets and other income and expense, net (in each case, as explained
respectively in the Company`s 2009 Document de référence filed with the AMF on
April 1, 2010) and the income tax effect of the non-IFRS adjustments. The tables
also set forth the most comparable IFRS financial measure and reconciliations of
this information with non-IFRS information.
Information in Constant Currencies
When the Company believes it would be helpful for understanding trends in its
business, the Company provides percentage increases or decreases in its revenue
(in both IFRS as well as non-IFRS) 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.
About Dassault Systèmes
As a world leader in 3D and Product Lifecycle Management (PLM) solutions,
Dassault Systèmes brings value to more than 115,000 customers in 80 countries. A
pioneer in the 3D software market since 1981, Dassault Systèmes develops and
markets PLM application software and services that support industrial processes
and provide a 3D vision of the entire lifecycle of products from conception to
maintenance to recycling. The Dassault Systèmes portfolio consists of CATIA for
virtual product design – SolidWorks 3D for Professionals – DELMIA for virtual
production – SIMULIA for realistic simulation – ENOVIA for global collaborative
lifecycle management, and 3DVIA for online 3D lifelike experiences. Dassault
Systèmes` shares are listed on Euronext Paris (#13065, DSY.PA) and Dassault
Systèmes` ADRs may be traded on the US Over-The-Counter (OTC) market (DASTY).
For more information, visit http://www.3ds.com
CATIA, DELMIA, ENOVIA, SIMULIA, SolidWorks and 3DVIA are registered trademarks
of Dassault Systèmes or its subsidiaries in the US and/or other countries.
TABLE OF CONTENTS
Non-IFRS key figures
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
DASSAULT SYSTEMES
NON-IFRS KEY FIGURES
(unaudited; in millions of Euros, except per share data, headcount and exchange
rates)
Non-IFRS key figures exclude the effects of adjusting the carrying value of
acquired companies` deferred revenue, stock-based compensation expense,
amortization of acquired intangible assets, and other operating income and
expense, net.
Comparable IFRS financial information and a reconciliation of the IFRS and
non-IFRS measures are set forth in the proceeding tables.
Three months ended Six months ended
June 30, 2010 June 30, 2009 Change Change in June 30, 2010 June 30, 2009 Change Change in
cc* cc*
Non-IFRS Revenue € 391.9 € 311.2 26% 20% € 703.9 € 621.9 13% 11%
Non-IFRS Revenue breakdown by activity
Software revenue 352.7 271.6 30% 24% 632.5 544.4 16% 14%
of which new licenses revenue 85.4 69.4 23% 17% 161.5 134.0 21% 18%
of which periodic licenses, maintenance and 267.3 202.2 32% 26% 471.0 410.4 15% 12%
product development revenue
Services and other revenue 39.2 39.6 (1%) (6%) 71.4 77.5 (8%) (10%)
Recurring software revenue 267.0 200.8 33% 27% 470.7 407.8 15% 13%
Non-IFRS software revenue breakdown by product line
PLM software revenue 274.7 206.8 33% 27% 483.6 408.5 18% 16%
of which CATIA software revenue 168.1 117.9 43% 36% 288.8 234.4 23% 21%
of which ENOVIA software revenue 48.5 40.1 21% 15% 84.7 74.2 14% 12%
Mainstream 3D software revenue 78.0 64.8 20% 14% 148.9 135.9 10% 7%
Non-IFRS Revenue breakdown by geography
Americas 117.2 96.6 21% 13% 209.0 194.4 8% 7%
Europe 175.1 144.2 21% 21% 316.0 281.9 12% 12%
Asia 99.6 70.4 41% 27% 178.9 145.6 23% 14%
Non-IFRS operating income € 109.5 € 68.1 61% € 178.6 € 128.5 39%
Non-IFRS operating margin 27.9% 21.9% 25.4% 20.7%
Non-IFRS net income 70.2 43.9 60% 121.5 87.3 39%
Non-IFRS diluted net income per share € 0.58 € 0.37 57% € 1.01 € 0.74 36%
Closing headcount 8,789 7,903 11% 8,789 7,903 11%
Average Rate USD per Euro 1.27 1.36 (7%) 1.33 1.33 (0%)
Average Rate JPY per Euro 117.2 132.6 (12%) 121.3 127.3 (5%)
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
New licenses revenue 85.4 69.4 161.5 134.0
Periodic licenses, maintenance and product development revenue 261.0 201.9 464.6 409.1
Software revenue 346.4 271.3 626.1 543.1
Services and other revenue 39.2 39.6 71.4 77.5
Total Revenue € 385.6 € 310.9 € 697.5 € 620.6
Cost of software revenue (excluding amortization of acquired intangibles) (19.4) (14.1) (35.8) (28.1)
Cost of services and other revenue (35.8) (35.6) (70.1) (73.5)
Research and development (83.2) (80.3) (160.6) (162.4)
Marketing and sales (121.5) (91.5) (213.6) (185.4)
General and administrative (29.4) (28.0) (56.9) (56.8)
Amortization of acquired intangibles (17.7) (11.9) (27.4) (22.6)
Other operating income and expense, net (6.6) (7.1) (11.6) (9.2)
Total Operating Expenses (€ 313.6) (€ 268.5) (€ 576.0) (€ 538.0)
Operating Income € 72.0 € 42.4 € 121.5 € 82.6
Financial revenue and other, net (3.3) (4.5) 2.4 (4.2)
Income before income taxes 68.7 37.9 123.9 78.4
Income tax expense (20.0) (12.2) (37.4) (23.9)
Net Income 48.7 25.7 86.5 54.5
Minority interest (0.1) (0.1) (0.1) (0.1)
Net Income attributable to equity holders of the parent € 48.6 € 25.6 € 86.4 € 54.4
Basic net income per share 0.41 0.22 0.73 0.46
Diluted net income per share € 0.40 € 0.22 € 0.72 € 0.46
Basic weighted average shares outstanding (in millions) 118.6 117.4 118.4 117.4
Diluted weighted average shares outstanding (in millions) 120.7 118.1 120.2 118.1
IFRS revenue variation as reported and in constant currencies
Three months ended June 30, 2010 Six months ended June 30, 2010
Change* Change in cc** Change* Change in cc**
IFRS Revenue 24% 18% 12% 10%
IFRS Revenue by activity
Software Revenue 28% 22% 15% 13%
Services and other Revenue (1%) (6%) (8%) (10%)
IFRS Software Revenue by product line
PLM software revenue 30% 24% 17% 15%
of which CATIA software revenue 38% 32% 21% 18%
of which ENOVIA software revenue 19% 13% 13% 11%
Mainstream 3D software revenue 20% 14% 10% 7%
IFRS Revenue by geography
Americas 20% 12% 7% 7%
Europe 20% 20% 12% 11%
Asia 36% 22% 21% 12%
* Variation compared to the same period in the prior year. ** In constant
currencies.
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)
(unaudited; in millions of Euros)
June 30, December 31,
2010 2009
ASSETS
Cash and cash equivalents 939.3 939.1
Short-term investments 81.6 118.9
Accounts receivable, net 331.0 322.3
Other current assets 119.9 121.4
Total current assets 1,471.8 1,501.7
Property and equipment, net 68.4 59.6
Goodwill and Intangible assets, net 1,322.3 660.8
Other non current assets 150.1 77.6
Total Assets € 3,012.6 € 2,299.7
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable 96.2 67.7
Unearned revenues 435.8 243.7
Other current liabilities 274.5 174.3
Total current liabilities 806.5 485.7
Long-term debt 306.8 200.1
Other non current obligations 233.1 165.1
Total long-term liabilities 539.9 365.2
Minority interests 1.0 1.1
Parent shareholders’ equity 1,665.2 1,447.7
Total Liabilities and Shareholders’ equity € 3,012.6 € 2,299.7
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)
(unaudited; in millions of Euros)
Three months ended Six months ended
June 30, 2010 June 30, 2009 Change June 30, 2010 June 30, 2009 Change
Net Income attributable to equity holders of the parent 48.6 25.6 23.0 86.4 54.4 32.0
Minority interest 0.1 0.1 0.0 0.1 0.1 0.0
Net Income 48.7 25.7 23.0 86.5 54.5 32.0
Depreciation and amortization of property & equipment 6.1 5.9 0.2 11.4 11.5 (0.1)
Amortization of intangible assets 18.7 12.5 6.2 29.4 24.6 4.8
Other non cash P&L Items (2.5) 4.0 (6.5) 1.9 2.7 (0.8)
Changes in working capital 61.3 32.9 28.4 136.4 84.0 52.4
Net Cash provided by operating activities 132.3 81.0 51.3 265.6 177.3 88.3
Acquisition of assets and equity, net (1) (155.1) (10.4) (144.7) (484.9) (16.8) (468.1)
Sale of fixed assets 0.5 0.3 0.2 0.7 0.5 0.2
Sale (purchase) of short term investments, net 23.1 (41.5) 64.6 42.3 (42.1) 84.4
Loans and others 0.1 0.2 (0.1) 0.1 0.0 0.1
Net Cash provided by (used in) investing activities (131.4) (51.4) (80.0) (441.8) (58.4) (383.4)
Borrowings 115.0 0.0 115.0 115.0 0.0 115.0
Share repurchase 0.0 0.0 0.0 (1.5) 0.0 (1.5)
Exercise of DS stock option 22.6 0.2 22.4 24.8 0.5 24.3
Cash dividend paid (54.5) (54.8) 0.3 (54.5) (54.8) 0.3
Net Cash provided by (used in) financing activities 83.1 (54.6) 137.7 83.8 (54.3) 138.1
Effect of exchange rate changes on 52.4 (32.4) 84.8 92.6 (13.5) 106.1
cash and cash equivalents
Increase in cash and cash equivalents 136.4 (57.4) 193.8 0.2 51.1 (50.9)
Cash and cash equivalents at beginning of period 802.9 902.6 939.1 794.1
Cash and cash equivalents at end of period 939.3 845.2 939.3 845.2
(1) The acquisition of the IBM PLM operations is presented net of payments
received from IBM in connection with the settlement of royalties due as of March
31, 2010. As a result, reported cash flows from operations are lower in the
periods presented above (and for the remainder of 2010) than they would have
been had this transaction not occurred.
DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)
Readers are cautioned that the supplemental non-IFRS 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 IFRS measurements. Also, the Company`s supplemental non-IFRS
financial information may not be comparable to similarly titled non-IFRS
measures used by other companies. Further specific limitations for individual
non-IFRS measures, and the reasons for presenting non-IFRS financial
information, are set forth in the Company`s Document de référence for the year
ended December 31, 2009 filed with the AMF on April 1, 2010 To compensate for
these limitations, the supplemental non-IFRS financial information should be
read not in isolation, but only in conjunction with the Company`s consolidated
financial statements prepared in accordance with IFRS.
In millions of Euros, except per share data and percentages Three months ended June 30, Change
2010 Adjustment 2010 2009 Adjustment 2009 IFRS Non-IFRS
IFRS (1) non-IFRS IFRS (1) non-IFRS (2)
Total Revenue € 385.6 6.3 € 391.9 € 310.9 0.3 € 311.2 24% 26%
Total Revenue breakdown by activity
Software revenue 346.4 6.3 352.7 271.3 0.3 271.6 28% 30%
New Licenses 85.4 69.4 23%
Product Development 0.3 1.4
Periodic Licenses and Maintenance 260.7 6.3 267.0 200.5 0.3 200.8 30% 33%
Recurring portion of Software revenue 75% 76% 74% 74%
Services and other revenue 39.2 39.6 (1%)
Total Software Revenue breakdown by product line
PLM software revenue 268.4 6.3 274.7 206.5 0.3 206.8 30% 33%
of which CATIA software revenue 162.7 5.4 168.1 117.9 38% 43%
of which ENOVIA software revenue 47.6 0.9 48.5 40.1 19% 21%
Mainstream 3D software revenue 78.0 64.8 20%
Total Revenue breakdown by geography
Americas 116.2 1.0 117.2 96.5 0.1 96.6 20% 21%
Europe 173.7 1.4 175.1 144.2 20% 21%
Asia 95.7 3.9 99.6 70.2 0.2 70.4 36% 41%
Total Operating Expenses (€ 313.6) 31.2 (€ 282.4) (€ 268.5) 25.4 (€ 243.1) 17% 16%
Stock-based compensation expense (6.9) 6.9 – (6.4) 6.4 – – –
Amortization of acquired intangibles (17.7) 17.7 – (11.9) 11.9 – – –
Other operating income and expense, net (6.6) 6.6 – (7.1) 7.1 – – –
Operating Income € 72.0 37.5 € 109.5 € 42.4 25.7 € 68.1 70% 61%
Operating Margin 18.7% 27.9% 13.6% 21.9%
Income before Income Taxes 68.7 37.5 106.2 37.9 25.7 63.6 81% 67%
Income tax expense (20.0) (15.9) (35.9) (12.2) (7.4) (19.6) – –
Income tax adjustments (15.9) 15.9 – (7.4) 7.4 – – –
Minority interest (0.1) (0.1) –
Net Income attributable to shareholders € 48.6 21.6 € 70.2 € 25.6 18.3 € 43.9 90% 60%
Diluted Net Income Per Share (3) € 0.40 0.18 € 0.58 € 0.22 0.15 € 0.37 82% 57%
(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue
data reflect the exclusion of the deferred revenue adjustment of acquired
companies; (ii) adjustments to IFRS operating expenses data reflect the
exclusion of the amortization of acquired intangibles, share-based compensation
expense, and other operating income and expense, and (iii) all adjustments to
IFRS income data reflect the combined effect of these adjustments, plus with
respect to net income and diluted net income per share, the income tax effect of
the non-IFRS adjustments.
Three months ended June 30,
In millions of Euros 2010 Adjustment 2010 2009 Adjustment 2009
IFRS non-IFRS IFRS non-IFRS
Cost of services and other revenue (35.8) 0.2 (35.6) (35.6) 0.2 (35.4)
Research and development (83.2) 4.0 (79.2) (80.3) 3.7 (76.6)
Marketing and sales (121.5) 1.5 (120.0) (91.5) 1.3 (90.2)
General and administrative (29.4) 1.2 (28.2) (28.0) 1.2 (26.8)
Total stock-based compensation expense 6.9 6.4
(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for
the two different periods. In the event there is non-IFRS adjustment to the
relevant measure for only one of the periods under comparison, the non-IFRS
increase (decrease) compares the non-IFRS measure to the relevant IFRS
measure.(3) Based on a weighted average 120.7 million diluted shares for Q2 2010
and 118.1 million diluted shares for Q2 2009.
DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)
Readers are cautioned that the supplemental non-IFRS 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 IFRS measurements. Also, the Company`s supplemental non-IFRS
financial information may not be comparable to similarly titled non-IFRS
measures used by other companies. Further specific limitations for individual
non-IFRS measures, and the reasons for presenting non-IFRS financial
information, are set forth in the Company`s Document de référence for the year
ended December 31, 2009 filed with the AMF on April 1, 2010 To compensate for
these limitations, the supplemental non-IFRS financial information should be
read not in isolation, but only in conjunction with the Company`s consolidated
financial statements prepared in accordance with IFRS.
In millions of Euros, except per share data and percentages Six months ended June 30, Change
2010 Adjustment 2010 2009 Adjustment 2009 IFRS Non-IFRS
IFRS (1) non-IFRS IFRS (1) non-IFRS (2)
Total Revenue € 697.5 6.4 € 703.9 € 620.6 1.3 € 621.9 12% 13%
Total Revenue breakdown by activity
Software revenue 626.1 6.4 632.5 543.1 1.3 544.4 15% 16%
New Licenses 161.5 134.0 21%
Product Development 0.3 2.6
Periodic Licenses and Maintenance 464.3 6.4 470.7 406.5 1.3 407.8 14% 15%
Recurring portion of Software revenue 74% 74% 75% 75%
Services and other revenue 71.4 77.5 (8%)
Total Software Revenue breakdown by product line
PLM software revenue 477.2 6.4 483.6 407.2 1.3 408.5 17% 18%
of which CATIA software revenue 283.4 5.4 288.8 234.4 21% 23%
of which ENOVIA software revenue 83.8 0.9 84.7 74.2 13% 14%
Mainstream 3D software revenue 148.9 135.9 10%
Total Revenue breakdown by geography
Americas 207.9 1.1 209.0 193.9 0.5 194.4 7% 8%
Europe 314.6 1.4 316.0 281.8 0.1 281.9 12% 12%
Asia 175.0 3.9 178.9 144.9 0.7 145.6 21% 23%
Total Operating Expenses (€ 576.0) 50.7 (€ 525.3) (€ 538.0) 44.6 (€ 493.4) 7% 6%
Stock-based compensation expense (11.7) 11.7 – (12.8) 12.8 – – –
Amortization of acquired intangibles (27.4) 27.4 – (22.6) 22.6 – – –
Other operating income and expense, net (11.6) 11.6 – (9.2) 9.2 – – –
Operating Income € 121.5 57.1 € 178.6 € 82.6 45.9 € 128.5 47% 39%
Operating Margin 17.4% 25.4% 13.3% 20.7%
Income before Income Taxes 123.9 57.1 181.0 78.4 45.9 124.3 58% 46%
Income tax expense (37.4) (22.0) (59.4) (23.9) (13.0) (36.9) – –
Income tax adjustments (22.0) 22.0 – (13.0) 13.0 – – –
Minority interest (0.1) (0.1) –
Net Income attributable to shareholders € 86.4 35.1 € 121.5 € 54.4 32.9 € 87.3 59% 39%
Diluted Net Income Per Share (3) € 0.72 0.29 € 1.01 € 0.46 0.28 € 0.74 57% 36%
(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue
data reflect the exclusion of the deferred revenue adjustment of acquired
companies; (ii) adjustments to IFRS operating expenses data reflect the
exclusion of the amortization of acquired intangibles, share-based compensation
expense, and other operating income and expense, and (iii) all adjustments to
IFRS income data reflect the combined effect of these adjustments, plus with
respect to net income and diluted net income per share, the income tax effect of
the non-IFRS adjustments.
Six months ended June 30,
In millions of Euros 2010 Adjustment 2010 2009 Adjustment 2009
IFRS non-IFRS IFRS non-IFRS
Cost of services and other revenue (70.1) 0.4 (69.7) (73.5) 0.3 (73.2)
Research and development (160.6) 6.8 (153.8) (162.4) 7.4 (155.0)
Marketing and sales (213.6) 2.4 (211.2) (185.4) 2.5 (182.9)
General and administrative (56.9) 2.1 (54.8) (56.8) 2.6 (54.2)
Total stock-based compensation expense 11.7 12.8
(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for
the two different periods. In the event there is a non-IFRS adjustment to the
relevant measure for only one of the periods under comparison, the non-IFRS
increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
(3) Based on a weighted average 120.2 million diluted shares for H1 2010 and
118.1 million diluted shares for H1 2009.
Dassault Systèmes:
François-José Bordonado/Beatrix Martinez
33.1.61.62.69.24
or
United States and Canada:
Michele.Katz@3DS.com
or
Financial Dynamics:
Juliet Clarke/Erwan Gouraud
44.20.7831.3113
or
Eloi Perrin-Aussedat/Clément Bénétreau/
Florence de Montmarin
33.1.47.03.68.10
Copyright Business Wire 2010
