Cash Flow and Other Financial Highlights
IFRS net operating cash flow increased to €101.1 million for the 2011 third quarter, compared to €51.1 million in the year-ago period. During the 2011 third quarter, the Company received cash of €19.9 million for stock options exercised and completed share repurchases in the amount of €54.4 million to offset share dilution from the exercise of options in connection with the 2011 expiration of several major ten-year stock option programs.
The Company’s net financial position, comprised of cash, cash equivalents and short-term investments less long-term debt, was €1.04 billion at September 30, 2011, compared to a net financial position of €845.7 million at December 31, 2010. The Company’s cash, cash equivalents and short-term investments totaled €1.33 billion and long-term debt was €289.2 million at September 30, 2011 compared to €1.14 billion and €293.4 million, respectively at December 31, 2010.
Summary of Business, Technology and Corporate Highlights
International Fashion Company, s.Oliver, Improves Collaboration and Increases Efficiency in the Garment Manufacturing Process with Dassault Systèmes. s.Oliver has selected Dassault Systèmes’ Version 6 PLM solution as its global platform for design and development, to ensure constant availability of all the up-to-date information required to create and manufacture new collections. s.Oliver is using ENOVIA Version 6 to streamline product line complexities, achieve lead-time reduction, and enhance global collaboration. The ENOVIA Apparel Accelerator for Design & Development provides deep, domain-specific apparel design and production capabilities to meet fashion industry needs.
First Online, Co-Created Military Vehicle Delivered Through Collaboration of Local Motors, Dassault Systèmes and Over 12,000 Community Members. Dassault Systèmes has teamed with Local Motors to deliver the first co-created military vehicle. Local Motors’ community was asked to develop a vehicle body design that could support two types of missions – Combat Reconnaissance and Combat Delivery & Evacuation. Thanks to Dassault Systèmes’ Version 6 platform and Local Motors’ expertise in crowd-based design and manufacturing, the winning vehicle went from concept to working prototype in less than six months.
SolidWorks 2012 Delivers Design Solutions to Drive Business and Design Team Productivity. Dassault Systèmes SolidWorks unveiled SolidWorks 2012, a comprehensive 3D design solution that enables users to work more efficiently and access the data they need to make better design decisions throughout the product development process. Benefits take shape throughout SolidWorks 2012 with a variety of improvements in areas such as assembly and drawing capabilities, built-in simulation, design costing, routing, image and animation creation and product data management that will positively impact design teams each and every day.
Dassault Systèmes Reinforces Electrical Strategy with Acquisition of Elsys. As detailed further in a separate section below, Dassault Systèmes has acquired Elsys, a privately-held company based in Brussels and Lyon providing electrical engineering PLM solutions. With this acquisition, DS states that the CATIA Version 6 portfolio is extended with the capability to address “all aspects of the electrical Logical and Manufacturing definitions to meet today’s compelling need for an end-to-end, fully integrated, electrical design to manufacturing solution.” ELSYS has been selected by major international companies from aerospace, automotive and shipbuilding industries as their preferred solution to cover their electrical engineering needs.
Dassault Systèmes at the Forefront of Next-Generation PLM Composites Solutions. As previously disclosed, on October 4th, Dassault Systèmes acquired Simulayt Limited, a composites simulation and advanced draping simulation technology provider. Dassault Systèmes says that this acquisition reinforces its longstanding leadership in providing PLM composites solutions for sustainable innovation, addressing a key challenge facing manufacturers in industries ranging from aerospace and automotive to consumer goods and energy ─ how to predict and optimize the behavior of materials, minimizing their weight while increasing their performance.
Launched “Staying Alive” - Teaching People How to Administer First Aid Using 3D Online Experience Platform. Developed in partnership with iLUMENS, a medical laboratory from Paris Descartes University, this project uses simulation technologies for medical training and demonstrates Dassault Systèmes commitment to combating the issue of heart attacks, one of the public health sector’s biggest concerns, and it also explores new horizons for its digital solutions.
Dassault Systèmes will hold its US Customer Conference 2011 November 8-10
th. This year’s theme is “Innovation in Life” and is dedicated to revealing how industry and technology leaders are using Dassault Systèmes’ software solutions, including Dassault Systèmes groundbreaking Version 6 technology, in order to innovate and develop new ideas, products and experiences in an immersive lifelike environment. Conference keynote speakers will include Bell Helicopter, Johnson and Johnson’s Medical Devices and Diagnostics Sector, Local Motors and KLA-Tencor.
DS Business Outlook
Thibault de Tersant, Senior Executive Vice President and CFO, commented, “Broad customer demand for our software products drove third quarter results, with revenue, operating margin and EPS coming in above the high end of our objectives. All of the revenue upside came through to earnings contributing to non-IFRS EPS growth of 18.5% and a non-IFRS operating margin of 32% in the third quarter, well ahead of our goals.”
“We are increasing our 2011 financial objectives to incorporate the third quarter revenue over-performance leading to a 2011 non-IFRS total revenue growth outlook of 12% to 13% in constant currencies and non-IFRS earnings per share growth of about 14% to 16%."