Dassault Systèmes Reports Q4 and FY Results, Addressable Market Expansion and Introduction of Broad Cloud Offering

*In constant currencies.

Just two years after announcing our future of becoming the 3DEXPERIENCE Company, customer implementations of our industry solution experiences are bringing significant value both for our customers and for their end-customers,” commented Bernard Charlès, Dassault Systèmes President and Chief Executive Officer. For example, MeadWestvaco, providing packaging solutions to the world’s most admired brands, is leveraging 6 of our industry solution experiences to significantly speed time to market for its customers, while accelerating innovation to support its consumer-centric packaging strategy.

“On top of our industry solution experiences value, a number of our largest customers are moving into the deployment phase with our V6 architecture. These deployments, such as the one happening at Renault, are significant in showing the ability, thanks to the V6 architecture, to support a single source of truth for global operations across multiple continents, brands and lines of business.

“And our 3DEXPERIENCE Lighthouse Program which was launched in mid-2013 is confirming the significant collaborative value of our 3DEXPERIENCE platform. Companies in different industries and a wide array of sizes, working on the Cloud, and on premise all confirm the game-changing value of a business platform centered on social product innovation in this Age of Experience.

“Last week we entered into a definitive agreement to acquire Accelrys with the objective to deliver transformational value to customers in life sciences and formulation-based industries by combining science-based innovation with product lifecycle management on our 3DEXPERIENCE platform. This acquisition is consistent with our purpose of harmonizing products, nature and life, and is well-timed, as later this year we will be introducing our first offering in bio-intelligence for the pharmaceutical industry following more than half a decade of research and development work in conjunction with leading industry players.”

2013 Fourth Quarter Financial Summary
(unaudited)

In millions of Euros, except per share data   IFRS     Non-IFRS
      Change   Change in cc*         Change   Change in cc*
Q4 Total Revenue   565.4   0%   5%     566.0   (0%)   5%
Q4 Software Revenue   511.1   0%   5%     511.7   (1%)   4%
Q4 Services and other revenue   54.3   3%   8%     54.3   3%   8%
Q4 Operating Margin   29.4%             34.9%        
Q4 EPS   0.85   12%         1.01   (1%)    

*In constant currencies.

           
 
In millions of Euros IFRS     Non-IFRS
  Q4 2013   Q4 2012   Change in cc*     Q4 2013   Q4 2012   Change in cc*
Americas   149.6   152.6   3%     149.5   154.0   2%
Europe   272.3   265.8   4%     273.0   266.7   4%
Asia   143.5   145.1   10%     143.5   147.5   9%
 
  • Overall, fourth quarter financial results were in line with the Company’s financial objectives.
  • Total revenue (IFRS and non-IFRS) increased 5%. By region, non-IFRS total revenue growth was highest in Asia, increasing 9%, led by India and China and well supported by South Korea. Non-IFRS revenue growth in Europe was 4%, led by the United Kingdom and recovery in Southern Europe offset in part by a strong base of comparison for France and Germany. Non-IFRS revenue in the Americas increased 2%. (All growth rates in constant currencies.)
  • Total revenue in high growth countries increased 14% in constant currencies in the fourth quarter.
  • Software revenue increased 5% (IFRS) and 4% (non-IFRS) and represented 90% of total revenue. Recurring software revenue increased 6% (IFRS and non-IFRS) on solid performance in maintenance across the Company’s different software applications with continued high renewal rates among users. (All growth comparisons are in constant currencies).
  • IFRS operating income increased 6% to €166.1 million and the operating margin increased to 29.4%. On a non-IFRS basis, operating income of €197.4 million was stable with the year-ago quarter, on operating efficiencies which offset the net negative impact of currencies of approximately €11 million. Non-IFRS operating margin was 34.9%, in line with the Company’s expectations, and slightly increasing compared with the same period of 2012 (34.7%).
  • IFRS net income per diluted share increased 12% to €0.85 per share. On a non-IFRS basis, net income per share decreased 1% to €1.01 per share, compared to €1.02 per share in the 2012 fourth quarter. Net negative currency movements reduced net income per share growth by an estimated 4 percentage points.
  • V6 purchases represented 27% of respective new licenses revenues in the fourth quarter, for companies in Aerospace and Defense, Consumer Product Goods, Energy, High Tech, Transportation and Mobility, among others. Half of the Company’s 20 largest customers are engaged in V6 deployments.

2013 Financial Summary

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