PARIS — (BUSINESS WIRE) — October 28, 2009 — Dassault Systèmes (DS) (Paris: DSY) (Euronext Paris: #13065, DSY.PA) reports IFRS unaudited financial results for the third quarter and nine-month periods ended September 30, 2009, in accordance with Article L.451-1-2 IV of the French Monetary and Financial Code (Code Monétaire et Financier). These results have been reviewed by the Company’s Board of Directors.
Summary Financial Highlights
(unaudited)
- As recently announced DS plans to acquire the IBM PLM business operations (“IBM PLM”) for approximately $600 million
- Third Quarter 2009 non-IFRS revenue results in line with DS Q3 objectives; non-IFRS EPS and non-IFRS operating margin above on strong cost controls; cost-savings reach €100 million year-to-date, ahead of plan
- Net operating cash flow of €234 million year-to-date; cash and short-term investments of €975 million
- DS updates 2009 financial objectives: reconfirms EPS range, narrows operating margin objective to mid-point of 25% and lowers revenue range by €10 million to €1.24 – €1.27 billion
Third Quarter 2009 Financial Summary
| In millions of Euros, except per share data | IFRS | Non-IFRS | ||||||||||
| Change | Change in cc* | Change | Change in cc* | |||||||||
| Q3 Total Revenue | 291.7 | (8%) | (12%) | 291.8 | (9%) | (12%) | ||||||
| Q3 Software Revenue | 255.6 | (8%) | (11%) | 255.7 | (8%) | (12%) | ||||||
| Q3 EPS | 0.32 | (14%) | 0.44 | (10%) | ||||||||
| Q3 Operating Margin | 19.4% | 25.5% | ||||||||||
|
*In constant currencies. |
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Bernard Charlès, Dassault Systèmes President and Chief Executive Officer, commented, “More than ever, this quarter illustrates our ongoing commitment to reconcile short-term execution and long-term strategy.
“Looking at the third quarter, the environment continued to be challenging, similar to the second quarter.
Against this reality, our earnings and operating margin results came in above our objectives on in-line revenue results, thanks to the strong execution of our cost savings program. We are on track to not only achieve, but in fact to exceed our full year savings target, all while maintaining our R&D and customer support investments in all the industries we serve.
“The agreement with IBM is very timely to get closer to our clients delivering unique V6 value for sustainable innovation and expand our partnership with IBM in services, flexible financing and new enterprise infrastructure.”
Third Quarter 2009 Financial Review
| In millions of Euros | IFRS | Non-IFRS | ||||||||||
| Q3 2009 | Q3 2008 | Change in cc* | Q3 2009 | Q3 2008 | Change in cc* | |||||||
| Total Revenue | 291.7 | 318.3 | (12%) | 291.8 | 319.7 | (12%) | ||||||
| Software Revenue | 255.6 | 276.5 | (11%) | 255.7 | 277.9 | (12%) | ||||||
| Services and other Revenue | 36.1 | 41.8 | (17%) | 36.1 | 41.8 | (17%) | ||||||
| PLM software Revenue | 194.7 | 208.9 | (11%) | 194.8 | 210.3 | (11%) | ||||||
| Mainstream 3D software Revenue | 60.9 | 67.6 | (14%) | 60.9 | 67.6 | (14%) | ||||||
| Americas | 89.1 | 101.4 | (16%) | 89.2 | 102.7 | (17%) | ||||||
| Europe | 134.8 | 146.1 | (7%) | 134.8 | 146.2 | (7%) | ||||||
|
Asia |
67.8 | 70.8 | (16%) | 67.8 | 70.8 | (16%) | ||||||
|
*In constant currencies. |
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- On a reported basis, IFRS and non-IFRS total revenue decreased 8% and 9%, respectively, and IFRS and non-IFRS software revenue declined by 8%, reflecting the impact of lower activity, offset in part by favorable currency impacts.
- On a constant currency basis, non-IFRS software revenue decreased 12% reflecting a decline in new licenses revenue of 37%, offset in part by recurring software revenue which increased 1% and represented 77% of total software revenue in the 2009 third quarter.
- Excluding currency effects non-IFRS PLM software revenue declined 11%. CATIA, representing 46% of total non-IFRS software revenue, decreased 7%. Other PLM software revenue was flat, benefiting from SIMULIA growth. ENOVIA software revenue was down 34%, reflecting a tough year-over-year comparison as well as lower large deal activity. The decrease in Mainstream 3D software revenue of 14% reflected lower new license revenue offset in part by growth in subscription revenue.
- IFRS net income per diluted share decreased 14% and non-IFRS net income per diluted share decreased 10%, principally reflecting lower revenue and lower financial revenue results, offset in part by an 11% decrease in total operating expenses.
- Global headcount at September 30, 2009 was 7,812 compared to 7,903 and 8,020 at June 30, 2009 and March 31, 2009, respectively.
Nine-Month 2009 Financial Summary
| In millions of Euros, except per share data | IFRS | Non-IFRS | ||||||||||
| Change | Change in cc* | Change | Change in cc* | |||||||||
| YTD 2009 Total Revenue | 912.3 | (4%) | (10%) | 913.7 | (4%) | (10%) | ||||||
| YTD 2009 Software Revenue | 798.7 | (3%) | (9%) | 800.1 | (3%) | (9%) | ||||||
| YTD 2009 EPS | 0.78 | (36%)** | 1.18 | (13%) | ||||||||
| YTD 2009 Operating Margin | 15.3% | 22.2% | ||||||||||
|
*In constant currencies. |
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|
**In the 2008 YTD period DS recorded a €17 million (€0.13 per share) gain on sale for its prior corporate headquarters facility in other operating income and expense, net. |
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| In millions of Euros | IFRS | Non-IFRS | ||||||||||
| YTD 2009 | YTD 2008 | Change in cc* | YTD 2009 | YTD 2008 | Change in cc* | |||||||
| Total Revenue | 912.3 | 951.9 | (10%) | 913.7 | 953.8 | (10%) | ||||||
| Software Revenue | 798.7 | 823.6 | (9%) | 800.1 | 825.5 | (9%) | ||||||
| Services and other Revenue | 113.6 | 128.3 | (17%) | 113.6 | 128.3 | (17%) | ||||||
| PLM software Revenue | 601.9 | 622.4 | (9%) | 603.3 | 624.3 | (9%) | ||||||
| Mainstream 3D software Revenue | 196.8 | 201.2 | (9%) | 196.8 | 201.2 | (9%) | ||||||
| Americas | 283.0 | 291.2 | (13%) | 283.6 | 292.7 | (13%) | ||||||
| Europe | 416.6 | 441.9 | (5%) | 416.7 | 442.2 | (5%) | ||||||
| Asia | 212.7 | 218.8 | (15%) | 213.4 | 218.9 | (15%) | ||||||
|
*In constant currencies. |
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- For the first nine months of 2009 IFRS and non-IFRS total revenue was lower by approximately 4% on a reported basis and by 10% in constant currencies, reflecting the impact of the global economic recession. Revenue growth rates on a reported basis benefited from the strengthening of both the U.S. dollar and the Japanese yen during the 2009 nine-month period in comparison to the year-ago period.
- Revenue distribution by geographic region for the 2009 nine-month period remained similar to that of the same period in 2008. As a percentage of total revenue, Europe represented 46% (46% in 2008 YTD), the Americas accounted for 31% (31% in 2008 YTD) and Asia represented 23% (23% in 2008 YTD).
- For the first nine months of 2009 IFRS and non-IFRS software revenue was lower by approximately 9% in constant currencies, reflecting a decrease in new licenses revenue of 38% offset in part by periodic licenses, maintenance, and product development revenue growth of 7% (all figures in constant currencies).
- Non-IFRS recurring software revenue comprised of periodic licenses and maintenance revenue increased 7% in constant currencies compared to the 2008 nine-month period. Non-IFRS recurring software revenue totaled €604.2 million and represented 76% of total software revenue, compared to €531.7 million and 64% in the 2008 period.
- IFRS diluted net income per share for the 2009 nine-month period decreased 35% principally reflecting the year-ago period benefit from the gain on sale of part of the Company’s prior corporate headquarters facility as well as the year-over-year decrease in revenue. Non-IFRS net income per diluted share decreased 13%, principally reflecting lower revenue activity.
Cash Flow and Other Financial Highlights
IFRS net operating cash flow was €56.6 million and €233.9 million for the three- and nine-month periods ended September 30, 2009, respectively.
Cash and short-term investments totaled €975.0 million at September 30, 2009, compared to €840.4 million at December 31, 2008. The Company’s net financial position amounted to €774.8 million at September 30, 2009, net of outstanding debt consisting of €200.2 million of financial long-term debt.
Key Business and Corporate Highlights
On October 26th, Dassault Systèmes and IBM announced their intent to integrate the IBM PLM sales force within DS and to sign a new global alliance to expand PLM in all industries. DS and IBM signed a definitive agreement whereby DS would acquire the IBM sales and client support business operations encompassing DS PLM software application portfolio, as well as customer contracts and related assets (“IBM PLM”), for approximately $600 million in cash. DS and IBM also defined the next steps in their long-standing relationship, with plans to establish DS as a strategic IBM global alliance partner and to expand their services partnership.
On October 21st, DS announced that HydroChina Chengdu Engineering Corporation (CHIDI), one of China’s largest hydropower investigation and design enterprises, has successfully implemented Dassault Systèmes’ PLM solutions to facilitate investigation, design, and collaborative management of hydropower plants. CHIDI has significantly shortened project timelines, reduced total costs, and improved the collaboration between cross-functional teams of designers and engineers.
On September 1st, DS announced that Boston Apparel Group has selected DS’ ENOVIA V6 solution including the ENOVIA Apparel Accelerator for Design and Development and the ENOVIA Apparel Accelerator for Sourcing and Production to provide the foundation for managing the company’s key business processes and ensuring the delivery of new product lines.
On September 1st, DS SolidWorks unveiled the SolidWorks® 2010 product line, a new set of software products that optimize the core product design functions that make designers and engineers successful every day. Through the use of CAD, simulation, data management, documentation, and environmental impact assessment, organizations will transform their inspirations into innovation, supported by a vibrant community of CAD users, content, technology, and expertise. This new SolidWorks product line also improves depth and performance by extending the DS SolidWorks tradition of including hundreds of new enhancements specifically requested by customers.
In September DS launched 3DVIA Mobile, an iPhone and iPod touch application that allows users to search, share and interact with the growing library of high quality 3D models on www.3DVIA.com. The addition of 3DVIA Mobile brings 3DVIA a powerful platform for delivering unique, online 3D experiences, directly into the hands of a fast growing community of mobile users. With 3DVIA Mobile, users can find realistic 3D content from DS’ library and immediately enrich their photos, right on the iPhone. They download and position the model on a picture for an instant 3D mash-up that blends 3D digital data with the physical world.
On August 11th, DS announced it was selected by Dana Holding Corporation for design simulation management. Dana Holding Corporation, a global vehicular supplier, has selected SIMULIA SLM as its simulation lifecycle management solution to enhance product development decision-making processes and support key business objectives.
Business Outlook
Thibault de Tersant, Senior Executive Vice President and CFO, commented, “We were pleased to deliver strong sequential growth in both earnings and operating margin in spite of the seasonal sequential decrease in revenue. Through the dedicated efforts of all our employees worldwide we have been able to achieve €100 million in cost savings year-to-date, ahead of our plans.
“Based upon our current visibility we think it is realistic to target a full year revenue objective of about €1.24 to €1.27 billion, which is just €10 million below our former objective. Thanks to our cost reduction results, we are reconfirming our non-IFRS operating margin objective of about 25% and our non-IFRS earnings objective of €1.76 to €1.91.
“The proposed acquisition of IBM PLM, which is expected to be completed during the 2010 second quarter, should be accretive to both our earnings and operating margin on a non-IFRS basis and will be instrumental to support our long-term growth strategy.”
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 Company’s current objectives are the following:
- Fourth quarter 2009 non-IFRS total revenue objective range of about €325 to €355 million and non-IFRS EPS range of about €0.58 to €0.73;
- 2009 non-IFRS total revenue objective growth range of about (10%) to (7%) in constant currencies (€1.24 to €1.27 billion based upon the 2009 currency exchange rate assumptions below);
- 2009 non-IFRS operating margin of about 25%;
- 2009 non-IFRS EPS range of about €1.76 to €1.91;
- Objectives are based upon exchange rate assumptions for the 2009 fourth quarter of US$1.50 per €1.00 and JPY140 per €1.00 and a full year average of US$1.40 per €1.00 and JPY132 per €1.00.
The non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2009 currency exchange rates above: (i) deferred revenue write-downs estimated at approximately €1 million for 2009; (ii) share-based compensation expense estimated at approximately €22 million for 2009, and (iii) amortization of acquired intangibles estimated at approximately €42 million for 2009. The above objectives do not include any impact from other operating income and expense, net principally comprised of restructuring expenses. These estimates also do not include any new stock option or share grants, or any new acquisitions or restructurings completed after October 29, 2009.
Webcast and Conference Call Information
Dassault Systèmes will host an analyst meeting in London which will be webcasted and a conference call today, Thursday, October 29, 2009. Management will host the webcast at 8:30 AM London time/9:30 AM CET time and will then host the conference call at 10:00 AM New York time /2:00 PM London time/3:00 PM CET. 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$1.40 per €1.00 and an average Japanese yen to euro exchange rate of JPY132 to €1.00 for the 2009 full year; 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 crisis on its 2009 fourth quarter and full year objectives, but conditions could worsen. Further the Company has assumed that its increased responsibility for both indirect and direct PLM sales channels, 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 2, 2009, 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, 2008 included in the Company’s 2008 Document de référence filed with the AMF on April 2, 2009.
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 2008 Document de référence). 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 designing the virtual product - SolidWorks for 3D mechanical design - DELMIA for virtual production - SIMULIA for virtual testing - 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 | Nine months ended | |||||||||||||||
| September 30, 2009 | September 30, 2008 | Change | Change in cc* | September 30, 2009 | September 30, 2008 | Change | Change in cc* | |||||||||
| Non-IFRS Revenue | € 291.8 | € 319.7 | (9%) | (12%) | € 913.7 | € 953.8 | (4%) | (10%) | ||||||||
| Non-IFRS Revenue breakdown by activity | ||||||||||||||||
| Software revenue | 255.7 | 277.9 | (8%) | (12%) | 800.1 | 825.5 | (3%) | (9%) | ||||||||
| of which new licenses revenue | 59.0 | 90.5 | (35%) | (37%) | 193.0 | 292.4 | (34%) | (38%) | ||||||||
|
of which periodic licenses, maintenance and
product development revenue |
196.7 | 187.4 | 5% | 1% | 607.1 | 533.1 | 14% | 7% | ||||||||
| Services and other revenue | 36.1 | 41.8 | (14%) | (17%) | 113.6 | 128.3 | (11%) | (17%) | ||||||||
| Recurring software revenue | 196.4 | 186.1 | 6% | 1% | 604.2 | 531.7 | 14% | 7% | ||||||||
| Non-IFRS software revenue breakdown by product line | ||||||||||||||||
| PLM software revenue | 194.8 | 210.3 | (7%) | (11%) | 603.3 | 624.3 | (3%) | (9%) | ||||||||
| of which CATIA software revenue | 118.8 | 122.5 | (3%) | (7%) | 353.2 | 371.8 | (5%) | (10%) | ||||||||
| of which ENOVIA software revenue | 30.0 | 43.8 | (32%) | (34%) | 104.2 | 125.4 | (17%) | (22%) | ||||||||
| Mainstream 3D software revenue | 60.9 | 67.6 | (10%) | (14%) | 196.8 | 201.2 | (2%) | (9%) | ||||||||
| Non-IFRS Revenue breakdown by geography | ||||||||||||||||
| Americas | 89.2 | 102.7 | (13%) | (17%) | 283.6 | 292.7 | (3%) | (13%) | ||||||||
| Europe | 134.8 | 146.2 | (8%) | (7%) | 416.7 | 442.2 | (6%) | (5%) | ||||||||
| Asia | 67.8 | 70.8 | (4%) | (16%) | 213.4 | 218.9 | (3%) | (15%) | ||||||||
| Non-IFRS operating income | € 74.5 | € 75.9 | (2%) | € 203.0 | € 227.9 | (11%) | ||||||||||
| Non-IFRS operating margin | 25.5% | 23.7% | 22.2% | 23.9% | ||||||||||||
| Non-IFRS net income | 52.2 | 58.7 | (11%) | 139.5 | 162.4 | (14%) | ||||||||||
| Non-IFRS diluted net income per share | € 0.44 | € 0.49 | (10%) | € 1.18 | € 1.36 | (13%) | ||||||||||
| Closing headcount | 7,812 | 7,825 | (0%) | 7,812 | 7,825 | (0%) | ||||||||||
| Average Rate USD per Euro | 1.43 | 1.50 | (5%) | 1.37 | 1.52 | (10%) | ||||||||||
| Average Rate JPY per Euro | 133.8 | 161.8 | (17%) | 129.5 | 161.0 | (20%) | ||||||||||
|
*In constant currencies. |
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DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (IFRS)
(unaudited; in millions of Euros, except per
share data)
| Three months ended | Nine months ended | |||||||
| September 30, | September 30, | September 30, | September 30, | |||||
| 2009 | 2008 | 2009 | 2008 | |||||
| New licenses revenue | 59.0 | 90.5 | 193.0 | 292.4 | ||||
| Periodic licenses, maintenance and product development revenue | 196.6 | 186.0 | 605.7 | 531.2 | ||||
| Software revenue | 255.6 | 276.5 | 798.7 | 823.6 | ||||
| Services and other revenue | 36.1 | 41.8 | 113.6 | 128.3 | ||||
| Total Revenue | € 291.7 | € 318.3 | € 912.3 | € 951.9 | ||||
| Cost of software revenue (excluding amortization of acquired intangibles) | (12.7) | (14.3) | (40.8) | (41.7) | ||||
| Cost of services and other revenue | (32.3) | (37.6) | (105.8) | (112.1) | ||||
| Research and development | (73.3) | (78.1) | (235.7) | (228.4) | ||||
| Marketing and sales | (81.7) | (91.3) | (267.1) | (279.0) | ||||
| General and administrative | (22.9) | (26.5) | (79.7) | (78.5) | ||||
| Amortization of acquired intangibles | (9.6) | (9.8) | (32.2) | (28.4) | ||||
| Other operating income and expense, net | (2.5) | (6.2) | (11.7) | 8.5 | ||||
| Total Operating Expenses | (€ 235.0) | (€ 263.8) | (€ 773.0) | (€ 759.6) | ||||
| Operating Income | € 56.7 | € 54.5 | € 139.3 | € 192.3 | ||||
| Financial revenue and other, net | (0.8) | 9.9 | (5.0) | 10.1 | ||||
| Income before income taxes | 55.9 | 64.4 | 134.3 | 202.4 | ||||
| Income tax expense | (17.4) | (20.1) | (41.3) | (57.8) | ||||
| Net Income | 38.5 | 44.3 | 93.0 | 144.6 | ||||
| Minority interest | (0.1) | (0.1) | (0.2) | (0.2) | ||||
| Net Income attributable to equity holders of the parent | € 38.4 | € 44.2 | € 92.8 | € 144.4 | ||||
| Basic net income per share | 0.33 | 0.37 | 0.79 | 1.23 | ||||
| Diluted net income per share | € 0.32 | € 0.37 | € 0.78 | € 1.21 | ||||
| Basic weighted average shares outstanding (in millions) | 117.6 | 117.9 | 117.5 | 117.5 | ||||
| Diluted weighted average shares outstanding (in millions) | 118.6 | 119.9 | 118.3 | 119.5 | ||||
|
IFRS revenue variation as reported and in constant currencies |
||||||||
| Three months ended September 30, 2009 | Nine months ended September 30, 2009 | |||||||
| Change* | Change in cc** | Change* | Change in cc** | |||||
| IFRS Revenue | (8%) | (12%) | (4%) | (10%) | ||||
| IFRS Revenue by activity | ||||||||
| Software Revenue | (8%) | (11%) | (3%) | (9%) | ||||
| Services and other Revenue | (14%) | (17%) | (11%) | (17%) | ||||
| IFRS Software Revenue by product line | ||||||||
| PLM software revenue | (7%) | (11%) | (3%) | (9%) | ||||
| of which CATIA software revenue | (3%) | (7%) | (5%) | (10%) | ||||
| of which ENOVIA software revenue | (32%) | (34%) | (17%) | (22%) | ||||
| Mainstream 3D software revenue | (10%) | (14%) | (2%) | (9%) | ||||
| IFRS Revenue by geography | ||||||||
| Americas | (12%) | (16%) | (3%) | (13%) | ||||
| Europe | (8%) | (7%) | (6%) | (5%) | ||||
| Asia | (4%) | (16%) | (3%) | (15%) | ||||
|
* Variation compared to the same period in the prior year. ** In constant currencies. |
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DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IFRS)
(unaudited; in millions of Euros)
| September 30, |
December 31, |
|||
|
|
2009 |
2008 |
||
| ASSETS | ||||
| Cash and cash equivalents | 831.5 | 794.1 | ||
| Short-term investments | 143.5 | 46.3 | ||
| Accounts receivable, net | 246.3 | 329.4 | ||
| Other current assets | 106.4 | 138.4 | ||
| Total current assets | 1,327.7 | 1,308.2 | ||
| Property and equipment, net | 62.2 | 69.3 | ||
| Goodwill and Intangible assets, net | 662.9 | 722.0 | ||
| Other non current assets | 83.1 | 42.5 | ||
| Total Assets | € 2,135.9 | € 2,142.0 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Accounts payable | 75.4 | 70.1 | ||
| Unearned revenues | 223.6 | 250.7 | ||
| Other current liabilities | 181.0 | 202.2 | ||
| Total current liabilities | 480.0 | 523.0 | ||
| Long-term debt | 200.2 | 200.7 | ||
| Other non current obligations | 122.4 | 113.8 | ||
| Total long-term liabilities | 322.6 | 314.5 | ||
| Minority interests | 1.1 | 1.6 | ||
| Parent shareholders' equity | 1,332.2 | 1,302.9 | ||
| Total Liabilities and Shareholders' equity | € 2,135.9 | € 2,142.0 | ||
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS (IFRS)
(unaudited; in millions of Euros)
| Three months ended | Nine months ended | |||||||||||
|
September 30,
|
September 30,
|
Change |
September 30,
|
September 30,
|
Change | |||||||
| Net Income attributable to equity holders of the parent | 38.4 | 44.2 | (5.8) | 92.8 | 144.4 | (51.6) | ||||||
| Minority interest | 0.1 | 0.1 | 0.0 | 0.2 | 0.2 | 0.0 | ||||||
| Net Income | 38.5 | 44.3 | (5.8) | 93.0 | 144.6 | (51.6) | ||||||
| Depreciation and amortization of property & equipment | 5.5 | 5.2 | 0.3 | 17.0 | 16.4 | 0.6 | ||||||
| Amortization of intangible assets | 10.9 | 11.1 | (0.2) | 35.5 | 31.8 | 3.7 | ||||||
| Other non cash P&L Items | 3.4 | 0.6 | 2.8 | 6.1 | (13.2) | 19.3 | ||||||
| Changes in working capital | (1.7) | 6.5 | (8.2) | 82.3 | 82.9 | (0.6) | ||||||
| Net Cash provided by operating activities | 56.6 | 67.7 | (11.1) | 233.9 | 262.5 | (28.6) | ||||||
| Acquisition of assets and equity, net of cash acquired | (1.6) | (42.0) | 40.4 | (18.4) | (66.6) | 48.2 | ||||||
| Sale of fixed assets | 0.0 | 0.6 | (0.6) | 0.5 | 36.6 | (36.1) | ||||||
| Purchase of short term investments, net | (56.7) | 19.0 | (75.7) | (98.8) | (38.2) | (60.6) | ||||||
| Loans and others | 0.3 | (0.6) | 0.9 | 0.3 | (0.3) | 0.6 | ||||||
| Net Cash provided by (used in) investing activities | (58.0) | (23.0) | (35.0) | (116.4) | (68.5) | (47.9) | ||||||
| Borrowings | (0.1) | 0.0 | (0.1) | (0.1) | 0.0 | (0.1) | ||||||
| Share repurchase | 0.0 | 0.0 | 0.0 | 0.0 | (35.0) | 35.0 | ||||||
| DS stock option and preferred stock Exercise | 1.5 | 19.5 | (18.0) | 2.0 | 42.8 | (40.8) | ||||||
| Cash dividend paid | 0.0 | 0.0 | 0.0 | (54.8) | (53.7) | (1.1) | ||||||
| Net Cash provided by (used in) financing activities | 1.4 | 19.5 | (18.1) | (52.9) | (45.9) | (7.0) | ||||||
|
Effect of exchange rate changes on
cash and cash equivalents |
(13.7) | 42.3 | (56.0) | (27.2) | 17.3 | (44.5) | ||||||
| Increase in cash and cash equivalents | (13.7) | 106.5 | (120.2) | 37.4 | 165.4 | (128.0) | ||||||
| Cash and cash equivalents at beginning of period | 845.2 | 656.1 | 794.1 | 597.2 | ||||||||
| Cash and cash equivalents at end of period | 831.5 | 762.6 | 831.5 | 762.6 | ||||||||
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, 2008 filed with the AMF on April 2, 2009. 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 September 30, | Change | ||||||||||||||
| 2009 |
Adjustment |
2009 | 2008 |
Adjustment |
2008 | IFRS |
Non-IFRS |
|||||||||
| IFRS |
(1) |
non-IFRS | IFRS |
(1) |
non-IFRS |
(2) |
||||||||||
| Total Revenue | € 291.7 | 0.1 | € 291.8 | € 318.3 | 1.4 | € 319.7 | (8%) | (9%) | ||||||||
| Total Revenue breakdown by activity | ||||||||||||||||
| Software revenue | 255.6 | 0.1 | 255.7 | 276.5 | 1.4 | 277.9 | (8%) | (8%) | ||||||||
| New Licenses | 59.0 | 90.5 | (35%) | |||||||||||||
| Product Development | 0.3 | 1.3 | ||||||||||||||
| Periodic Licenses and Maintenance | 196.3 | 0.1 | 196.4 | 184.7 | 1.4 | 186.1 | 6% | 6% | ||||||||
| Recurring portion of Software revenue | 77% | 77% | 67% | 67% | ||||||||||||
| Services and other revenue | 36.1 | 41.8 | (14%) | |||||||||||||
| Total Software Revenue breakdown by product line | ||||||||||||||||
| PLM software revenue | 194.7 | 0.1 | 194.8 | 208.9 | 1.4 | 210.3 | (7%) | (7%) | ||||||||
| of which CATIA software revenue | 118.8 | 122.5 | (3%) | |||||||||||||
| of which ENOVIA software revenue | 30.0 | 43.8 | (32%) | |||||||||||||
| Mainstream 3D software revenue | 60.9 | 67.6 | (10%) | |||||||||||||
| Total Revenue breakdown by geography | ||||||||||||||||
| Americas | 89.1 | 0.1 | 89.2 | 101.4 | 1.3 | 102.7 | (12%) | (13%) | ||||||||
| Europe | 134.8 | 0.0 | 134.8 | 146.1 | 0.1 | 146.2 | (8%) | (8%) | ||||||||
| Asia | 67.8 | 0.0 | 67.8 | 70.8 | 0.0 | 70.8 | (4%) | (4%) | ||||||||
| Total Operating Expenses | (€ 235.0) | 17.7 | (€ 217.3) | (€ 263.8) | 20.0 | (€ 243.8) | (11%) | (11%) | ||||||||
| Stock-based compensation expense | (5.6) | 5.6 | - | (4.0) | 4.0 | - | - | - | ||||||||
| Amortization of acquired intangibles | (9.6) | 9.6 | - | (9.8) | 9.8 | - | - | - | ||||||||
| Other operating income and expense, net | (2.5) | 2.5 | - | (6.2) | 6.2 | - | - | - | ||||||||
| Operating Income | € 56.7 | 17.8 | € 74.5 | € 54.5 | 21.4 | € 75.9 | 4% | (2%) | ||||||||
| Operating Margin | 19.4% | 25.5% | 17.1% | 23.7% | ||||||||||||
| Income before Income Taxes | 55.9 | 17.8 | 73.7 | 64.4 | 21.4 | 85.8 | (13%) | (14%) | ||||||||
| Income tax expense | (17.4) | (4.0) | (21.4) | (20.1) | (6.9) | (27.0) | - | - | ||||||||
| Income tax effect of adjustments above | (4.0) | 4.0 | - | (6.9) | 6.9 | - | - | - | ||||||||
| Minority interest | (0.1) | (0.1) | - | |||||||||||||
| Net Income attributable to shareholders | € 38.4 | 13.8 | € 52.2 | € 44.2 | 14.5 | € 58.7 | (13%) | (11%) | ||||||||
| Diluted Net Income Per Share (3) | € 0.32 | 0.12 | € 0.44 | € 0.37 | 0.12 | € 0.49 | (14%) | (10%) | ||||||||
(1) In the reconciliation schedule above, (i) all non-IFRS adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-IFRS adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net and stock-based compensation expense (as detailed below); and (iii) all non-IFRS adjustments to IFRS net income data reflect the combined effect of these non-IFRS adjustments with their related tax effects.
| Three months ended September 30, | ||||||||||||
| In millions of Euros | 2009 IFRS | Adjustment | 2009 | 2008 IFRS | Adjustment | 2008 | ||||||
| non-IFRS | non-IFRS | |||||||||||
| Cost of services and other revenue | (32.3) | 0.1 | (32.2) | (37.6) | 0.0 | (37.6) | ||||||
| Research and development | (73.3) | 3.2 | (70.1) | (78.1) | 2.3 | (75.8) | ||||||
| Marketing and sales | (81.7) | 1.0 | (80.7) | (91.3) | 0.8 | (90.5) | ||||||
| General and administrative | (22.9) | 1.3 | (21.6) | (26.5) | 0.9 | (25.6) | ||||||
| Total stock-based compensation expense | 5.6 | 4.0 | ||||||||||
(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 118.6 million diluted shares for Q3 2009 and 119.9 million diluted shares for Q3 2008.
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, 2008 filed with the AMF on April 2, 2009. 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 | Nine months ended September 30, | Change | ||||||||||||||
| 2009 |
Adjustment |
2009 | 2008 |
Adjustment |
2008 | IFRS |
Non-IFRS |
|||||||||
| IFRS |
(1) |
non-IFRS | IFRS |
(1) |
non-IFRS |
(2) |
||||||||||
| Total Revenue | € 912.3 | 1.4 | € 913.7 | € 951.9 | 1.9 | € 953.8 | (4%) | (4%) | ||||||||
| Total Revenue breakdown by activity | ||||||||||||||||
| Software revenue | 798.7 | 1.4 | 800.1 | 823.6 | 1.9 | 825.5 | (3%) | (3%) | ||||||||
| New Licenses | 193.0 | 292.4 | (34%) | |||||||||||||
| Product Development | 2.9 | 1.4 | ||||||||||||||
| Periodic Licenses and Maintenance | 602.8 | 1.4 | 604.2 | 529.8 | 1.9 | 531.7 | 14% | 14% | ||||||||
| Recurring portion of Software revenue | 75% | 76% | 64% | 64% | ||||||||||||
| Services and other revenue | 113.6 | 128.3 | (11%) | |||||||||||||
| Total Software Revenue breakdown by product line | ||||||||||||||||
| PLM software revenue | 601.9 | 1.4 | 603.3 | 622.4 | 1.9 | 624.3 | (3%) | (3%) | ||||||||
| of which CATIA software revenue | 353.2 | 371.5 | 0.3 | 371.8 | (5%) | (5%) | ||||||||||
| of which ENOVIA software revenue | 104.2 | 125.2 | 0.2 | 125.4 | (17%) | (17%) | ||||||||||
| Mainstream 3D software revenue | 196.8 | 201.2 | (2%) | |||||||||||||
| Total Revenue breakdown by geography | ||||||||||||||||
| Americas | 283.0 | 0.6 | 283.6 | 291.2 | 1.5 | 292.7 | (3%) | (3%) | ||||||||
| Europe | 416.6 | 0.1 | 416.7 | 441.9 | 0.3 | 442.2 | (6%) | (6%) | ||||||||
| Asia | 212.7 | 0.7 | 213.4 | 218.8 | 0.1 | 218.9 | (3%) | (3%) | ||||||||
| Total Operating Expenses | (€ 773.0) | 62.3 | (€ 710.7) | (€ 759.6) | 33.7 | (€ 725.9) | 2% | (2%) | ||||||||
| Stock-based compensation expense | (18.4) | 18.4 | - | (13.8) | 13.8 | - | - | - | ||||||||
| Amortization of acquired intangibles | (32.2) | 32.2 | - | (28.4) | 28.4 | - | - | - | ||||||||
| Other operating income and expense, net | (11.7) | 11.7 | - | 8.5 | (8.5) | - | - | - | ||||||||
| Operating Income | € 139.3 | 63.7 | € 203.0 | € 192.3 | 35.6 | € 227.9 | (28%) | (11%) | ||||||||
| Operating Margin | 15.3% | 22.2% | 20.2% | 23.9% | ||||||||||||
| Income before Income Taxes | 134.3 | 63.7 | 198.0 | 202.4 | 35.6 | 238.0 | (34%) | (17%) | ||||||||
| Income tax expense | (41.3) | (17.0) | (58.3) | (57.8) | (17.6) | (75.4) | - | - | ||||||||
| Income tax effect of adjustments above | (17.0) | 17.0 | - | (17.6) | 17.6 | - | - | - | ||||||||
| Minority interest | (0.2) | (0.2) | - | |||||||||||||
| Net Income attributable to shareholders | € 92.8 | 46.7 | € 139.5 | € 144.4 | 18.0 | € 162.4 | (36%) | (14%) | ||||||||
| Diluted Net Income Per Share (3) | € 0.78 | 0.40 | € 1.18 | € 1.21 | 0.15 | € 1.36 | (36%) | (13%) | ||||||||
(1) In the reconciliation schedule above, (i) all non-IFRS adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment; (ii) non-IFRS adjustments to operating expense data reflect the exclusion of the amortization of acquired intangibles, other operating income and expense, net and stock-based compensation expense (as detailed below); and (iii) all non-IFRS adjustments to IFRS net income data reflect the combined effect of these non-IFRS adjustments with their related tax effects.
| Nine months ended September 30, | ||||||||||||
| In millions of Euros | 2009 IFRS | Adjustment | 2009 | 2008 IFRS | Adjustment | 2008 | ||||||
| non-IFRS | non-IFRS | |||||||||||
| Cost of services and other revenue | (105.8) | 0.4 | (105.4) | (112.1) | 0.4 | (111.7) | ||||||
| Research and development | (235.7) | 10.6 | (225.1) | (228.4) | 8.0 | (220.4) | ||||||
| Marketing and sales | (267.1) | 3.5 | (263.6) | (279.0) | 2.7 | (276.3) | ||||||
| General and administrative | (79.7) | 3.9 | (75.8) | (78.5) | 2.7 | (75.8) | ||||||
| Total stock-based compensation expense | 18.4 | 13.8 | ||||||||||
(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 118.3 million diluted shares for YTD 2009 and 119.5 million diluted shares for YTD 2008.
Contact:
Dassault Systèmes:
François-José Bordonado/Beatrix Martinez
33.1.61.62.69.24
or
United
States and Canada:
Michele Katz
Email Contact
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