Life Science is a perfect illustration of it, and why a comprehensive approach can be incredibly valuable. Our brand BIOVIA, integrating our BioIntelligence project and the Accelrys acquisition, leveraging the recent 2015X release of the 3DEXPERIENCE platform, is a true game-changer, powering all types of applications as well as simplifying enterprise integration and transformation.
More broadly, products as well as processes are becoming more complex. Products are becoming smarter with sophisticated embedded systems, underscoring our development of CATIA Systems, which was further strengthened recently with the technology of Modelon GmbH.
Finally, looking at our results and future opportunities, we see a year of strong financial performance in 2015. Thanks to multiple access points we can better serve our customer base, reach an expanded market opportunity and accelerate our organic growth.
2015 First Quarter Financial Summary
|In millions of Euros, except per share data||IFRS||Non-IFRS|
|Change||Change in cc*||Change||Change in cc*|
|Q1 Total Revenue||651.5||30%||17%||665.1||32%||19%|
|Q1 Software Revenue||578.2||29%||16%||591.0||31%||18%|
|Q1 Services and other revenue||73.3||39%||27%||74.1||41%||29%|
|Q1 Operating Margin||17.0%||25.8%|
|In millions of Euros||IFRS||Non-IFRS|
|Q1 2015||Q1 2014||Change in cc*||Q1 2015||Q1 2014||Change in cc*|
*In constant currencies
- IFRS total revenue increased 17% on software revenue growth of 16% and services and other revenue growth of 27%. On a non-IFRS basis, total revenue increased 19%, on software revenue growth of 18% and services and other revenue growth of 29%. (All growth rates in constant currencies.)
- The Company experienced solid new business activity in multiple industries, most notably Transportation & Mobility, Industrial Equipment, Marine & Offshore, Life Sciences, CPG and Energy, Process & Utilities.
- On an organic basis, the Company has seen a progressive strengthening of its revenue results over the last four quarters, led by improved new licenses revenue dynamic. Excluding acquisitions and in constant currencies, non-IFRS total revenue increased 8%, software revenue grew 9% and new licenses revenue rose 14%.
- From a regional perspective, first quarter non-IFRS revenue in Europe increased 18%, on solid growth in all major countries, and sharply improved results in Southern Europe. In Asia, non-IFRS revenue grew 18% on a strong performance in Korea, well supported by India and Japan. And in the Americas, revenue grew 23% in total with growth in North America offset in part by weaker results in Latin America. (All growth rates in constant currencies.)
- Non-IFRS new licenses revenue increased 24% and non-IFRS recurring software revenue grew 16%, reflecting the addition of acquisitions and solid underlying performance. Recurring software revenue reflected principally growth in maintenance where the Company continued to experience high renewal trends across its software brands. (All growth comparisons are in constant currencies.)
- By product line, non-IFRS software revenue grew 4% for CATIA and 17% for SOLIDWORKS; ENOVIA software decreased 4%, reflecting a high comparison base. Other software increased 59%, with the addition of the Accelrys and Quintiq acquisitions as well as strong SIMULIA growth. (All growth comparisons are in constant currencies.)
- IFRS operating income increased 38% to 110.5 million and non-IFRS operating income increased 23% to 171.7 million. The non-IFRS operating margin was 25.8% in the 2015 first quarter compared to 27.7% in the year-ago quarter, reflecting acquisition dilution, offset in part by currency tailwinds and organic operating margin improvement. The 2014 first quarter included a one-time R&D tax credit benefit.
- The IFRS effective tax rate increased to 36.1% compared to 35.8% in the 2014 first quarter. The non-IFRS effective tax rate was stable at 35.2%, compared to 35.1% in the year-ago quarter.
- IFRS diluted net income per share increased 29% to 0.27 per share, compared to 0.21 per share on a two-for-one split-adjusted basis in the 2014 first quarter. Non-IFRS diluted net income per share increased 18% to 0.43, compared to 0.37 per share on a two-for-one split-adjusted basis in the year-ago quarter, with a strong increase notwithstanding the favorable impact of the one-time R&D tax credit in the 2014 first quarter.