[ Back ]   [ More News ]   [ Home ]
Dassault Systèmes Reports Organic Double-digit Revenue and Earnings Growth for the 2012 Second Quarter and First Half

PARIS — (BUSINESS WIRE) — July 25, 2012 — Regulatory News:

Dassault Systèmes (Paris: DSY) (Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today reports IFRS unaudited financial results for the second quarter and first half ended June 30, 2012. These results were reviewed by the Company’s Board of Directors on July 25, 2012.

Summary Highlights
(unaudited)

 
2012 Second Quarter Financial Summary

(unaudited)

 
In millions of Euros, except per share data       IFRS       Non-IFRS
              Change       Change in cc*               Change       Change in cc*
Q2 Total Revenue       502.9       17%       10%       502.9       17%       10%
Q2 Software Revenue       457.8       18%       11%       457.8       18%       11%
Q2 EPS       0.67       29%               0.76       19%        
Q2 Operating Margin       25.2%                       29.2%                

*In constant currencies.

 

“Dassault Systèmes had a strong new business dynamic in the second quarter as demonstrated by the combination of our new licenses and rental revenue growth,” commented Bernard Charlès, Dassault Systèmes President and Chief Executive Officer. “While retaining appropriate caution, we are upgrading our revenue target for 2012, and reaching a new milestone - €2 billion in annual revenues.

“We are very pleased with these results and we see a much larger potential over the coming years. This is because the response of all our partners to the 3DEXPERIENCE platform adoption is unanimous and enthusiastic. They see the potential of our Industry Solution Experiences and see the value for their customers.

“Finally, during the 2012 First Half, we advanced our dream of sustainable innovation for product, nature and life with the completion of the Gemcom acquisition. The new brand GEOVIA and the creation of a new Industry for Natural Resources are creating new business dynamics and new industry solutions for our core industries, too. The mastering of geophysics and modeling of our planet is and will be a key parameter for the future of Transportation & Mobility, Marine & Offshore, Industrial Equipment and Energy, Process & Utilities.”

 

2012 Second Quarter Financial Summary

(unaudited)

 
In millions of Euros       IFRS       Non-IFRS
        Q2 2012       Q2 2011       Change in cc*       Q2 2012       Q2 2011       Change in cc*
Total Revenue       502.9       428.6       10%       502.9       428.6       10%
Software Revenue       457.8       388.4       11%       457.8       388.4       11%
Services and other Revenue       45.1       40.2       6%       45.1       40.2       6%
                                                 
PLM software Revenue       356.3       307.0       9%       356.3       307.0       9%
SOLIDWORKS software Revenue       101.5       81.4       15%       101.5       81.4       15%
                                                 
Americas       139.2       124.4       0%       139.2       124.4       0%
Europe       228.2       188.4       19%       228.2       188.4       19%
Asia       135.5       115.8       8%       135.5       115.8       8%

*In constant currencies.

 

2012 First Half Financial Summary

(unaudited)

 
In millions of Euros, except per share data       IFRS       Non-IFRS
                Change       Change in cc*               Change       Change in cc*
2012 YTD Total Revenue       965.3       15%       10%       965.3       15%       10%
2012 YTD Software Revenue       877.7       15%       10%       877.7       15%       10%
2012 YTD EPS       1.25       21%               1.47       15%        
2012 YTD Operating Margin       24.1%                       29.2%                

*In constant currencies.

 
 
In millions of Euros IFRS       Non-IFRS
        2012 YTD       2011 YTD       Change in cc*       2012 YTD       2011 YTD       Change in cc*
Total Revenue       965.3       838.1       10%       965.3       838.5       10%
Software Revenue       877.7       760.6       10%       877.7       761.0       10%
Services and other Revenue       87.6       77.5       8%       87.6       77.5       8%
                                                 
PLM software Revenue       677.8       595.1       9%       677.8       595.5       9%
SOLIDWORKS software Revenue       199.9       165.5       14%       199.9       165.5       14%
                                                 
Americas       265.6       237.1       4%       265.6       237.2       4%
Europe       432.3       375.2       14%       432.3       375.2       14%
Asia       267.4       225.8       11%       267.4       226.1       11%

*In constant currencies.

 

Cash Flow and Other Financial Highlights

Net operating cash flow increased 27% to €188.1 million in the 2012 second quarter, compared to €147.6 million in the year-ago second quarter, reflecting principally growth in net income and working capital improvements. For the 2012 First Half, net operating cash flow was €353.8 million, increasing 26% in comparison to €281.3 million for the 2011 First Half.

In the 2012 second quarter, the Company paid cash dividends of €86.5 million in total; received cash of €41.5 million for stock options exercised and completed share repurchases totaling €71.9 million; and made additions to property, equipment and intangibles of €9.3 million.

The Company’s net financial position was €1.39 billion at June 30, 2012, compared to €1.15 billion at December 31, 2011, and was comprised of cash, cash equivalents and short-term investments less long-term debt and less the €200 million debt which became short term as of December 31, 2011. At June 30, 2012 compared to December 31, 2011, the Company’s cash, cash equivalents and short-term investments totaled €1.64 billion compared to €1.42 billion and total debt was €287.0 million compared to €301.3 million.

Annual Shareholders’ Meeting Approved 30% Increase in Cash Dividend Payment

At the Annual Shareholders’ Meeting held on June 7, 2012, shareholders approved the payment of an annual cash dividend equivalent to €0.70 per share for the fiscal year ended December 31, 2011, representing a 30% increase compared to the prior fiscal year. Since 2009, the Company has raised its annual cash dividend per share by 52%. The cash dividend was paid on June 26, 2012.

Summary Business, Technology and Corporate Highlights

Dassault Systèmes completes acquisition of Gemcom Software International (Gemcom), headquartered in Vancouver, Canada. On July 11, the Company acquired 100% of the geological modeling and simulation company Gemcom for approximately €292 million, less assumed liabilities, in an all cash transaction. Gemcom now champions the further development of Dassault Systèmes’ strategy of modeling the natural world, expanding 3DEXPERIENCE to Nature, with Rick Moignard, former CEO of Gemcom, becoming the CEO of the newly created GEOVIA brand.

Dassault Systèmes to spin-off Transcat PLM GmbH (Transcat). Dassault Systèmes, after the successful spin-off of its business partner Keonys in 2008, today announced Transcat spin-off, via a management buyout (MBO) of its sales and services subsidiary and long time development partner dedicated to customers of all sizes in Germany. The transaction builds on Dassault Systèmes’ strategy to strengthen its partners’ business success in each geography and enable a new level of partner-to-customer-to-user experience. Etienne Droit, former CATIA CEO, will become Managing Director of Transcat, alongside with Gehrard Keller and Günther Öhlschläger.

Philippe Laufer newly appointed CEO of CATIA brand. Currently head of CATIA R&D, Philippe has been with 3DS for 20+ years and has been instrumental in driving CATIA’s market leadership position. He also has deep industry knowledge of the 3DEXPERIENCE platform and its V6 architecture.

Dassault Systèmes Announces V6-Release-2013 of its 3DEXPERIENCE Platform, Continued Openness and Industry-specific Solutions Deliver Rapid Value Across Industry Experience. V6-Release-2013 of the 3DEXPERIENCE platform was introduced in June. This release delivers enhancements for all of the Company’s Brand Applications. V6-Release-2013 brings therefore new capabilities to numerous industries such as Aerospace and Defense, Transportation and Mobility, Marine and Offshore, Consumer Goods and Consumer Packaged Goods.

Dassault Systèmes Supports Industry Commitment to Codex of PLM Openness “Critical to Collaboration and Innovation”. In June, Dassault Systèmes announced its ongoing commitment to openness, continuing its support of the next phases of the Codex of PLM Openness, an initiative driven by automotive OEMs, suppliers and the ProSTEP iViP association. Since long a proponent of openness, Dassault Systèmes has architected its 3DEXPERIENCE platform to take full advantage of its 20+ years of research and development in infrastructure protocols and interoperability. The platform’s V6 architecture and its Web services infrastructure is compliant with a variety of interface standards and supports multiple exchange standards, such as STEP, IGES, FMI, AUTOSAR and JT. From open interoperability with competitive PDM, CAD and enterprise systems to thousands of publicly available APIs, the 3DEXPERIENCE platform has been developed from its inception to support openness.

Dassault Systèmes Continues to Expand Channel Diversification and Growth, while Preparing Partners to Embrace 3DEXPERIENCE. The 3DEXPERIENCE PARTNERS FORUM, with 220 key partners of its indirect Value Solutions sales channel, was held in Paris on July 10-12th. This worldwide event focused on best practices from the past years of successful channel management and growth, and how 3DEXPERIENCE is reshaping the way Dassault Systèmes’ partners provide support and opportunities to their customers.

Dassault Systèmes Launches “Smart, Safe & Connected Car” Industry Solution Experience. On July 11th, Dassault Systèmes launched a new industry solution experience for the automotive segment, “Smart, Safe & Connected Car” - a solution that accelerates the development of embedded systems while achieving ISO26262 safety standards and AUTOSAR compliancy.

SIMULIA Announces New Capabilities Powered by 3DEXPERIENCE Platform, Including New Online Learning Community, Next Generation Solutions for Multiphysics, Design Exploration, and SLM at its annual conference. Thought-leading presenters from a wide range of international manufacturing and research organizations, including 3M, Caterpillar, General Motors, Tetra Pak, Goodrich, Halliburton, Hyundai, Medtronic, and NASA, among others, held multiple industry sessions, focused on solving real-world engineering challenges through the use of SIMULIA’s scalable and robust solutions for unified finite element analysis, multiphysics simulation, design exploration, and simulation lifecycle management.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “Overall, we have delivered a very solid second quarter with double-digit growth for software revenue and earnings per share – all organic. Moreover, we had a strong level of new business activity, although perhaps less apparent at first glance. In addition to new license revenue growth, our rental software revenue increased more than 20% in constant currencies in the quarter. Our new business came from a number of industries including Aerospace, Energy, High Tech, Industrial Equipment, Life Sciences and Transportation & Mobility.

“From a brand perspective, SIMULIA delivered outstanding results reflecting strong demand around the globe for its finite element analysis, multi-physics as well as its simulation lifecycle management capabilities leveraging ENOVIA V6. And from a regional perspective, the results in Europe were particularly gratifying with revenue growth of 19% in constant currencies in the second quarter.

“Turning to our financial objectives for the full year, we are upgrading them to take into account the second quarter over-performance as well as an improved outlook for the third quarter and adjusting for currency evolution. We are then expanding the perimeter, adding Gemcom while also reflecting the spin-off of our Transcat PLM sales and service business partner operations in Germany. Finally, we are leaving our view of the 4th quarter unchanged, as we believe our initial caution at the outset of 2012 continues to be appropriate.”

The Company’s updated 2012 financial objectives, including Gemcom are as follows:

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 non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2012 currency exchange rates above: share-based compensation expense estimated at approximately €20 million for 2012 and amortization of acquired intangibles estimated at approximately €85 million for 2012. The above objectives do not include any impact from other operating income and expense, net, related to acquisition, integration and restructuring of €4.1 million representing a gain in the 2012 first half. The above non-IFRS adjustments do not take into account the impact of the Gemcom acquisition, for which the accounting elements will be finalized and included in the third quarter earnings announcement. Finally, these estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after July 26, 2012.

Today’s Webcast and Conference Call Information

Today, Thursday, July 26, 2012, Dassault Systèmes will first host a meeting in Paris, which will be simultaneously webcasted at 9:30 AM London time/10:30 AM Paris time and will then host a conference call at 9:00 AM New York time/2:00 PM London time/3:00 PM Paris time. The webcasted meeting and conference call will be available via the Internet by accessing http://www.3ds.com/company/finance/. Please go to the website at least 15 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.

2012 Key Investor Relations Events

Third Quarter Earnings, October 25, 2012

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 Dassault Systèmes 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. If global economic and business conditions continue to be volatile or deteriorate, the Company’s business results may not develop as currently anticipated and may decline below their earlier levels for an extended period of time. Furthermore, due to factors affecting sales of the Company’s products and services, there may be a substantial time lag between any change in global economic and business conditions and its impact on the Company’s business results.

In preparing such forward-looking statements, the Company has in particular assumed an average U.S. dollar to euro exchange rate of US$1.30 per €1.00 and an average Japanese yen to euro exchange rate of JPY110 to €1.00 for the 2012 third quarter; for 2012, the Company has assumed an average U.S. dollar to euro exchange rate of US$1.30 per €1.00 and an average Japanese yen to euro exchange rate of JPY107 to €1.00; however, currency values fluctuate, and the Company’s results of operations may be significantly affected by changes in exchange rates. The Company’s actual results or performance may also be materially negatively affected by changes in the current global economic context, difficulties or adverse changes affecting its partners or its relationships with its partners, changes in exchange rates, 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 any newly acquired company, in particular related to the integration of Gemcom software International and internal reorganizations. Unfavorable changes in any of the above or other factors described in the Company’s regulatory reports, including the 2011 Document de référence, which was filed with the French Autorité des marchés financiers (AMF) on March 29, 2012, could materially affect the Company’s financial position or results of operations.

Non-IFRS Financial Information

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 annual report for the year ended December 31, 2011 included in the Company’s 2011 Document de référence filed with the AMF on March 29, 2012.

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, other income and expense, net, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments. 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 "prior" period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

About Dassault Systèmes

Dassault Systèmes, the 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 150,000 customers of all sizes, in all industries, in more than 80 countries. For more information, visit www.3ds.com.

CATIA, SOLIDWORKS, ENOVIA, SIMULIA, DELMIA, 3D VIA, 3DSwYm, EXALEAD, and Netvibes are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.

(Tables to follow)

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, other operating income and expense, net and certain one-time financial revenue items and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

 
      Three months ended       Six months ended
       

June 30,
2012

     

June 30,
2011

      Change      

Change in cc*

     

June 30,
2012

     

June 30,
2011

      Change       Change in cc*
Non-IFRS Revenue € 502.9       € 428.6       17%       10%       € 965.3       € 838.5       15%       10%
 
Non-IFRS Revenue breakdown by activity
Software revenue 457.8 388.4 18% 11% 877.7 761.0 15% 10%
of which new licenses revenue 127.9 110.4 16% 9% 248.2 209.4 19% 13%

of which periodic licenses, maintenance and
product development revenue

329.9 278.0 19% 11% 629.5 551.6 14% 9%
Services and other revenue 45.1 40.2 12% 6% 87.6 77.5 13% 8%
 
Recurring software revenue 328.1 277.2 18% 11% 625.7 550.5 14% 9%
 
Non-IFRS software revenue breakdown by product line
PLM software revenue 356.3 307.0 16% 9% 677.8 595.5 14% 9%
of which CATIA software revenue 208.5 183.1 14% 8% 398.4 360.1 11% 7%
of which ENOVIA software revenue 65.8 55.9 18% 9% 123.9 103.9 19% 13%
SOLIDWORKS software revenue 101.5 81.4 25% 15% 199.9 165.5 21% 14%
 
Non-IFRS Revenue breakdown by geography
Americas 139.2 124.4 12% 0% 265.6 237.2 12% 4%
Europe 228.2 188.4 21% 19% 432.3 375.2 15% 14%
Asia       135.5       115.8       17%       8%       267.4       226.1       18%       11%
 
Non-IFRS operating income € 147.0 € 120.2 22% € 282.3 € 236.3 19%
Non-IFRS operating margin 29.2% 28.0% 29.2% 28.2%
Non-IFRS net income 95.5 79.7 20% 184.4 158.4 16%
Non-IFRS diluted net income per share       € 0.76       € 0.64       19%               € 1.47       € 1.28       15%        
Closing headcount       9,684       9,286       4%               9,684       9,286       4%        
 
Average Rate USD per Euro 1.28 1.44 (11%) 1.30 1.40 (8%)
Average Rate JPY per Euro       102.6       117.4       (13%)               103.3       115.0       (10%)        

*In constant currencies

 
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)

(unaudited; in millions of Euros, except per share data)

 
      Three months ended       Six months ended
       

June 30,
2012

     

June 30,
2011

     

June 30,
2012

     

June 30,
2011

New licenses revenue 127.9       110.4       248.2       209.4

Periodic licenses, maintenance and product
development revenue

329.9       278.0       629.5       551.2
Software revenue 457.8 388.4 877.7 760.6
Services and other revenue 45.1       40.2       87.6       77.5
Total Revenue € 502.9 € 428.6 € 965.3 € 838.1

Cost of software revenue (excluding amortization
of acquired intangibles)

(22.0) (18.8) (44.4) (37.8)
Cost of services and other revenue (42.9) (46.6) (86.0) (85.9)
Research and development (92.9) (83.1) (179.3) (160.0)
Marketing and sales (165.9) (128.0) (310.5) (259.5)
General and administrative (37.2) (35.9) (73.3) (66.8)
Amortization of acquired intangibles (21.8) (20.5) (43.3) (41.8)
Other operating income and expense, net 6.3       (2.5)       4.1       (2.3)
Total Operating Expenses (€ 376.4)       (€ 335.4)       (€ 732.7)       (€ 654.1)
Operating Income € 126.5 € 93.2 € 232.6 € 184.0
Financial revenue and other, net 0.8       1.1       5.1       4.4
Income before income taxes 127.3 94.3 237.7 188.4
Income tax expense (42.0) (30.0) (79.2) (60.2)
Net Income 85.3 64.3 158.5 128.2
Non-controlling interest (1.0)       0.0       (2.1)       (0.1)

Net Income attributable to equity holders of
the parent

€ 84.3       € 64.3       € 156.4       € 128.1
Basic net income per share 0.68       0.53       1.27       1.06
Diluted net income per share € 0.67       € 0.52       € 1.25       € 1.03

Basic weighted average shares outstanding (in
millions)

123.4       121.6       123.0       121.3

Diluted weighted average shares outstanding (in
millions)

      125.9       124.2       125.5       124.0
 

IFRS revenue variation as reported and in constant currencies

 

Three months ended June 30, 2012

      Six months ended June 30, 2012
        Change*       Change in cc**       Change*       Change in cc**
IFRS Revenue 17% 10% 15% 10%
IFRS Revenue by activity
Software Revenue 18% 11% 15% 10%
Services and other Revenue 12% 6% 13% 8%
IFRS Software Revenue by product line
PLM software revenue 16% 9% 14% 9%
of which CATIA software revenue 14% 8% 11% 7%
of which ENOVIA software revenue 18% 9% 19% 13%
SOLIDWORKS 25% 15% 21% 14%
IFRS Revenue by geography
Americas 12% 0% 12% 4%
Europe 21% 19% 15% 14%
Asia       17%       8%       18%       11%

* Variation compared to the same period in the prior year. ** In constant currencies.

 
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)

(unaudited; in millions of Euros)

 
       

June 30,
2012

     

December 31,
2011

           
ASSETS
Cash and cash equivalents 1,461.3 1,154.3
Short-term investments 182.6 268.7
Accounts receivable, net 431.1 494.3
Other current assets 134.3 139.4
Total current assets 2,209.3 2,056.7
Property and equipment, net 110.9 106.6
Goodwill and Intangible assets, net 1,237.5 1,241.9
Other non current assets 131.6       111.6
Total Assets       € 3,689.3       € 3,516.8
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable 91.5 99.9
Unearned revenues 578.7 492.0
Short-term debt 229.0 228.9
Other current liabilities 299.1 317.3
Total current liabilities 1,198.3 1,138.1
Long-term debt 58.0 72.4
Other non current obligations 229.5 222.6
Total long-term liabilities 287.5 295.0
Non-controlling interests 16.0 17.5
Parent shareholders' equity 2,187.5       2,066.2
Total Liabilities and Shareholders' equity       € 3,689.3       € 3,516.8
 
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)

(unaudited; in millions of Euros)

 
      Three months ended       Six months ended
       

June 30,
2012

     

June 30,
2011

      Change      

June 30,
2012

     

June 30,
2011

      Change
Net Income attributable to equity holders of the parent 84.3       64.3       20.0       156.4       128.1       28.3
Non-controlling interest 1.0 0.0 1.0 2.1 0.1 2.0
Net Income 85.3 64.3 21.0 158.5 128.2 30.3
Depreciation of property & equipment 7.0 6.0 1.0 16.1 12.2 3.9
Amortization of intangible assets 23.2 21.5 1.7 45.7 43.6 2.1
Other non cash P&L Items (4.6) 0.0 (4.6) 0.9 0.5 0.4
Changes in working capital 77.2 55.8 21.4 132.6 96.8 35.8
Net Cash provided by operating activities € 188.1 € 147.6 € 40.5 € 353.8 € 281.3 € 72.5
 
Additions to property, equipement and intangibles (9.3) (13.1) 3.8 (23.7) (22.3) (1.4)
Payments for acquisition of businesses, net of cash acquired (1.0) 0.0 (1.0) (19.1) (29.5) 10.4
Sale of fixed assets 0.1 0.0 0.1 0.3 0.1 0.2
Sale (purchase) of short term investments, net 36.0 41.3 (5.3) 86.9 (121.6) 208.5
Loans and others (7.5)       0.6       (8.1)       (12.5)       (2.6)       (9.9)
Net Cash provided by (used in) investing activities € 18.3 € 28.8 (€ 10.5) € 31.9 (€ 175.9) € 207.8
 
Proceeds (Repayments) of short-term and long-term debt (14.0) (12.8) (1.2) (14.0) (12.8) (1.2)
Repurchase of common stock (71.9) (61.2) (10.7) (71.9) (172.3) 100.4
Proceeds from exercise of stock-options 41.5 98.9 (57.4) 74.2 179.0 (104.8)
Cash dividend paid (86.5)       (65.8)       (20.7)       (86.5)       (65.8)       (20.7)
Net Cash provided by (used in) financing activities (€ 130.9) (€ 40.9) (€ 90.0) (€ 98.2) (€ 71.9) (€ 26.3)
 

Effect of exchange rate changes on
cash and cash equivalents

42.8 (6.1) 48.9 19.5 (43.8) 63.3
                                         
Increase (decrease) in cash and cash equivalents       € 118.3       € 129.4       (€ 11.1)       € 307.0       (€ 10.3)       € 317.3
                                                 
Cash and cash equivalents at beginning of period € 1,343.0 € 836.8 1,154.3 976.5
Cash and cash equivalents at end of period       € 1,461.3       € 966.2               1,461.3       966.2        
 

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, 2011 filed with the AMF on March 29, 2012. 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 June 30,       Change
     

2012
IFRS

     

Adjustment
(1)

     

2012
non-IFRS

     

2011
IFRS

     

Adjustment
(1)

     

2011
non-IFRS

     

IFRS

     

Non-IFRS
(2)

Total Revenue € 502.9                   € 428.6                   17%      
Total Revenue breakdown by activity
Software revenue 457.8 388.4 18%
New Licenses 127.9 110.4 16%
Product Development 1.8 0.8
Periodic Licenses and Maintenance 328.1 277.2 18%
Recurring portion of Software revenue 72% 71%
Services and other revenue 45.1 40.2 12%

Total Software Revenue breakdown by product line

PLM software revenue 356.3 307.0 16%
of which CATIA software revenue 208.5 183.1 14%
of which ENOVIA software revenue 65.8 55.9 18%
SOLIDWORKS software revenue 101.5 81.4 25%
Total Revenue breakdown by geography
Americas 139.2 124.4 12%
Europe 228.2 188.4 21%
Asia       135.5                       115.8                       17%        
Total Operating Expenses (€ 376.4) 20.5 (€ 355.9) (€ 335.4) 27.0 (€ 308.4) 12% 15%
Stock-based compensation expense (5.0) 5.0 - (4.0) 4.0 - - -
Amortization of acquired intangibles (21.8) 21.8 - (20.5) 20.5 - - -
Other operating income and expense, net       6.3       (6.3)       -       (2.5)       2.5       -       -       -
Operating Income € 126.5 20.5 € 147.0 € 93.2 27.0 € 120.2 36% 22%
Operating Margin 25.2% 29.2% 21.7% 28.0%
Financial revenue & other, net 0.8 0.2 1.0 1.1 (1.7) (0.6) (27%) (267%)
Income tax expense (42.0) (9.5) (51.5) (30.0) (9.9) (39.9) 40% 29%
Non-controlling interest (1.0) 0.0 (1.0) 0.0 0.0 0.0 N/A N/A
Net Income attributable to shareholders € 84.3 11.2 € 95.5 € 64.3 15.4 € 79.7 31% 20%
Diluted Net Income Per Share (3)       € 0.67       0.09       € 0.76       € 0.52       0.12       € 0.64       29%       19%

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment of acquired companies; (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangibles, share-based compensation expense, and other operating income and expense, (iii) adjustments to IFRS financial revenue and other, net reflect the exclusion of certain one-time items included in financial revenue and other, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted net income per share, the income tax effect of the non-IFRS adjustments.

 
In millions of Euros       Three months ended June 30,
      2012 IFRS       Adjustment      

2012
non-IFRS

      2011 IFRS       Adjustment      

2011
non-IFRS

Cost of revenue (64.9)       0.1       (64.8)       (65.4)       0.2       (65.2)
Research and development (92.9) 2.4 (90.5) (83.1) 1.9 (81.2)
Marketing and sales (165.9) 1.3 (164.6) (128.0) 1.0 (127.0)
General and administrative (37.2) 1.2 (36.0) (35.9) 0.9 (35.0)
Total stock-based compensation expense               5.0                       4.0        

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is 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 125.9 million diluted shares for Q2 2012 and 124.2 million diluted shares for Q2 2011.

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, 2011 filed with the AMF on March 29, 2012. 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

      Six months ended June 30,       Change
     

2012
IFRS

     

Adjustment
(1)

     

2012
non-IFRS

     

2011
IFRS

     

Adjustment
(1)

     

2011
non-IFRS

      IFRS      

Non-IFRS
(2)

Total Revenue € 965.3                   € 838.1       0.4       € 838.5       15%       15%
Total Revenue breakdown by activity
Software revenue 877.7 760.6 0.4 761.0 15% 15%
New Licenses 248.2 209.4 19%
Product Development 3.8 1.1
Periodic Licenses and Maintenance 625.7 550.1 0.4 550.5 14% 14%
Recurring portion of Software revenue 71% 72% 72%
Services and other revenue 87.6 77.5 13%
Total Software Revenue breakdown by product line
PLM software revenue 677.8 595.1 0.4 595.5 14% 14%
of which CATIA software revenue 398.4 359.7 0.4 360.1 11% 11%
of which ENOVIA software revenue 123.9 103.9 19%
SOLIDWORKS software revenue 199.9 165.5 21%
Total Revenue breakdown by geography
Americas 265.6 237.1 0.1 237.2 12% 12%
Europe 432.3 375.2 15%
Asia       267.4                       225.8       0.3       226.1       18%       18%
Total Operating Expenses (€ 732.7) 49.7 (€ 683.0) (€ 654.1) 51.9 (€ 602.2) 12% 13%
Stock-based compensation expense (10.5) 10.5 - (7.8) 7.8 - - -
Amortization of acquired intangibles (43.3) 43.3 - (41.8) 41.8 - - -
Other operating income and expense, net       4.1       (4.1)       -       (2.3)       2.3       -       -       -
Operating Income € 232.6 49.7 € 282.3 € 184.0 52.3 € 236.3 26% 19%
Operating Margin 24.1% 29.2% 22.0% 28.2%
Financial revenue & other, net 5.1 (2.4) 2.7 4.4 (5.0) (0.6) 16% (550%)
Income tax expense (79.2) (19.3) (98.5) (60.2) (17.0) (77.2) 32% 28%
Non-controlling interest (2.1) 0.0 (2.1) (0.1) 0.0 (0.1) -
Net Income attributable to shareholders € 156.4 28.0 € 184.4 € 128.1 30.3 € 158.4 22% 16%
Diluted Net Income Per Share (3)       € 1.25       0.22       € 1.47       € 1.03       0.25       € 1.28       21%       15%

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment of acquired companies; (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangibles, share-based compensation expense, and other operating income and expense, (iii) adjustments to IFRS financial revenue and other, net reflect the exclusion of certain one-time items included in financial revenue and other, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted net income per share, the income tax effect of the non-IFRS adjustments.

 

In millions of Euros

      Six months ended June 30,
      2012 IFRS       Adjustment      

2012
non-IFRS

      2011 IFRS       Adjustment      

2011
non-IFRS

Cost of revenue (130.4)       0.3       (130.1)       (123.7)       0.3       (123.4)
Research and development (179.3) 5.0 (174.3) (160.0) 3.7 (156.3)
Marketing and sales (310.5) 2.7 (307.8) (259.5) 2.0 (257.5)
General and administrative (73.3) 2.5 (70.8) (66.8) 1.8 (65.0)
Total stock-based compensation expense               10.5                       7.8        

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is 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 125.5 million diluted shares for YTD 2012 and 124.0 million diluted shares for YTD 2011.



Contact:

Dassault Systèmes :
François-José Bordonado/Beatrix Martinez, 33-1-61-62-69-24
or
United States and Canada:
Email Contact
or
FTI Consulting :
Jon Snowball, 44-20-7831-3113
or
Clément Bénétreau/Charlotte Richard, 33-1-47-03-68-10