CIMdata PLM Industry Summary Online Archive
14 October 2013
Financial News
Dassault Systèmes Releases Third Quarter 2013 Preliminary Non-IFRS Results
Dassault Systèmes today announces preliminary non-IFRS unaudited financial results for the third quarter ended September 30, 2013 with total revenue and earnings below the Company’s financial objectives. Dassault Systèmes will hold a conference call today to discuss preliminary results at 1:00PM London time/ 2:00 PM Paris time/ 8:00 AM New York time as described further below.
Third Quarter 2013 Preliminary Non-IFRS Financial Results (unaudited)
- Non-IFRS total revenue of €496 million
- Non-IFRS operating margin of 31.6%
- Non-IFRS EPS of €0.88
Third quarter non-IFRS total revenue of €496 million increased 4% in constant currencies year over year. The revenue shortfall of €24 million, compared with the Company’s €520 million revenue objective is explained by about €12 million of deals slippage at the very end of the quarter, and approximately €4 million of lower than anticipated services and other revenue, amounting to a transaction miss of €16 million, and an estimated €8 million net impact from new business with SMB companies choosing rental licensing instead of upfront, purchased licenses. Non-IFRS operating margin of 31.6% was slightly better than expected and reflects the Company’s continued focus on improving operational efficiencies. Non-IFRS EPS decreased 1% to €0.88, compared to the third quarter 2012.
On a regional basis, non-IFRS total revenue increased 2% in Asia, 1% in the Americas and 7% in Europe. (All figures in constant currencies.)
Non-IFRS software revenue increased 4% in constant currencies. New licenses revenue decreased 10% in constant currencies while non-IFRS recurring software revenue totaled €349 million and increased 8% in constant currencies on growth in maintenance and rentals. Non-IFRS recurring software revenue represented 77% of total software revenue in the third quarter.
“We have launched a major transformation towards 3DEXPERIENCE to prepare our market expansion and future growth opportunities. While I appreciate the challenge it represents, I am convinced that this strategy will broaden our addressable market and open many new growth opportunities. Therefore, it requires that we continue to strengthen our organization, support our partners’ network and keep our focus on delivering solid results as we re-orient the Company to our Industry Solutions Experiences strategy,” commented Bernard Charlès, President and Chief Executive Officer.
Thibault de Tersant, Senior Executive Vice President, CFO, added, “Despite a quarter that was on track until the very last days of the period, our preliminary financial results are below our revenue and earnings objectives and I want to apologize for that.
“Our revenue growth rate of 4% compared to our objective of 8-9% reflects two different factors which materialized at the end of the quarter. First, we had transaction delays caused by lengthening of capex decisions. Secondly, a portion of our new business activity did indeed close but in the form of a further shift to rental activity among SMB companies and this second factor represented about 1.5 points of growth. While we like the revenue accretion brought by rental licenses over the long term, and the business model alignment with our upcoming Cloud solutions, rental decisions made late in the quarter had an impact on our immediate revenue recognition.
“Looking forward, we anticipate adjusting our fourth quarter revenue objective to reflect further shifts towards rental, further transaction delays and emerging countries’ currencies weakness, in an amount of approximately €20 million, to €565 million revenue at the low-end. Compared to the same quarter of last year, this would represent a growth of about 5% in constant currencies, with new licenses revenue growth, a non-IFRS EPS objective of €0.97, incorporating an anticipated tax increase in France, and a non-IFRS operating margin of about 34%. We will provide our formal detailed updated guidance for the fourth quarter and full year at the time of our earnings release on October 24th.”
Today’s Conference Call Information
Today, Monday, October 14, 2013, Dassault Systèmes will host a conference call at 8:00 AM New York time/ 1:00 PM London time/ 2:00 PM Paris time. The conference call will be available online by accessing http://www.3ds.com/investors/. Please go to the website at least 15 minutes prior to the conference call to register, download and install any necessary audio software. The conference call will be archived for 30 days.
Additional investor information can be accessed at http://www.3ds.com/investors/ or by calling Dassault Systèmes’ Investor Relations at 33.1.61.62.69.24.
The Company will return to its pre-release quiet period beginning Tuesday, October 15, 2013 and will have no further comments on its financial results until it releases its third quarter and year-to-date 2013 financial results on October 24, 2013.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.