Dassault Systèmes Reports 20.2% Revenue Growth in First Half 2011

The Tip Desk · June 30, 2011 · 2 min read

The software company saw its operating result rise 51.4% to 184.0 million euros during the first six months of the year.

Dassault Systèmes, the software company, reported total revenue of 838.1 million euros for the half-year ended June 30, 2011, compared to 697.5 million euros for the same period in 2010. The company said this 20.2% increase was driven by growth in software sales and services.

The acquisition of IBM PLM on April 1, 2010, contributed significantly to the results of the PLM segment and the group as a whole. This transaction increased the number of direct customers and drove revenue and charges. In the PLM segment, software revenue increased 26% at constant exchange rates. Non-IFRS data shows this growth was led by CATIA at 26%, ENOVIA at 25%, and other PLM solutions at 21%.

Recurring revenue represented 72% of software revenue in the first half of 2011, down from 74% in the first half of 2010. In non-IFRS terms, recurring revenue rose 19% at constant exchange rates to 551.6 million euros, up from 471.0 million euros in the prior year. New license revenue grew 32% at constant exchange rates, adding 47.9 million euros.

Operating result rose 51.4% to 184.0 million euros. The company said this growth was linked to the 20.2% rise in total revenue, which was partially offset by a 13.6% increase in operating charges. Operating margin increased to 22.0% from 17.4% in the first half of 2010. Net diluted earnings per share rose 43.1% to 1.03 euros.

Geographic performance varied, with Asia seeing the highest published growth at 29.0%. Europe reported a 19.3% increase, which the company attributed to the integration of IBM PLM and growth across its three sales networks. The Americas saw a 14.0% increase.

The company used its cash for several activities, including 172.3 million euros for share buybacks and 65.8 million euros for dividends. It also spent 29.5 million euros on external growth, including the acquisitions of Enginuity and Intercim. Net cash, including short-term investments and minus long-term debt, was 973.1 million euros at June 30, 2011, compared to 845.7 million euros at December 31, 2010.

Dassault Systèmes estimates that its growth rate for the second half of 2011 will be lower than the first half. The company cited several reasons for this trajectory, including the fact that the IBM PLM acquisition only impacted revenue in the first quarter of 2011 and a more difficult comparison for new license sales. The company also noted assumptions of significant exchange rate fluctuations and a slow global economic recovery.