“This new agreement, with the deployment of our 3DEXPERIENCE platform to support Boeing’s complete value chain, from innovation to manufacturing and after sales, as well as enhancement of data thus created, represents a new step, equivalent to or even more important in potential reach than the previous one, thanks to the ability to holistically evaluate, with the 3DEXPERIENCE platform, all data produced from the different value streams, and to convert this data into assets, thus delivering massive benefits for users and their corporations.

“Looking back, twenty-five years ago, the importance of the digital world’s role in innovation was truly first revealed thanks to Boeing’s historical decision at that time to rely on Dassault Systèmes’ Digital Mock-Up software to design the new B-777, paving the way for digital twins of products.

“Finally, while we were pleased with second quarter results having reached the high-end of our objectives for software revenue and EPS, it is only a step on a trajectory on which Dassault Systèmes should see an acceleration of its growth, based upon the multiple strategic clients’ decisions, like Boeing’s, demonstrating our ideal positioning to bring value to all the industries we serve.”

• IFRS total revenue increased 6%. Non-IFRS total revenue increased 6% with software revenue growth of 7% and services revenue growth of 3%. Second quarter financial results include CST, an acquisition completed on September 30, 2016. (All growth rates in constant currencies.)
• Core Industries represented 67% of non-IFRS software revenue for the second quarter 2017 while Diversification Industries represented 33%, growing from 31% in the prior year period. Aerospace & Defense and Industrial Equipment grew double-digit, while Transportation & Mobility showed stability. (All growth references are in constant currencies.)
• In Diversification Industries, total non-IFRS software revenue increased double-digits and by industry included High Tech, Life Sciences, Architecture, Engineering & Construction and Consumer Products Good-Retail. (All growth references are in constant currencies.)
• Non-IFRS Software revenue increased 9% in the Americas, with double-digit new licenses revenue growth reflecting strong growth in North America, and growth in recurring software revenue. In Europe non-IFRS software revenue increased 7%, with double-digit new licenses revenue growth reflecting strong performances in Central and Southern Europe. In Asia, non-IFRS software revenue increased 4%, reflecting strong growth in South Korea and Asia Pacific South offset in part by muted results in Japan and China. (All growth figures in constant currencies.)
• Recurring non-IFRS software revenue increased 6% in constant currencies on strong maintenance subscription performance on a global basis and represented 71% of total software revenue in the 2017 second quarter. New licenses and other software revenue increased 8%. (All references to growth rates are in constant currencies.)
• By product line, SOLIDWORKS non-IFRS software revenue increased 14% led by strong growth in new licenses revenue. During the second quarter, CATIA non-IFRS software revenue increased 1% with double-digit new license revenue growth in North America and Europe, offset by a lower contribution most notably from China. ENOVIA non-IFRS software revenue was up 2% on a high comparison base. Other Software non-IFRS revenue increased 9% in total, led by QUINTIQ. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 5%. Non-IFRS operating income increased 6% to €243.8 million. The non-IFRS operating margin decreased 30 basis points year over year to 30.1% on higher investments, particularly in research & development and sales, as well as acquisition dilution, which was partly offset by net favorable currency fluctuations.
• The IFRS effective tax rate increased 40 basis points to 33.5% from 33.1% in the year-ago quarter. On a non-IFRS basis, the effective tax rate decreased 60 basis points to 34.5% from 35.1% in the year-ago quarter principally due to lower tax on dividends.
• IFRS diluted net income per share increased 23% to €0.48. Non-IFRS diluted net income per share of €0.62 increased 9% on revenue and operating income growth. Currency had a net neutral impact on diluted net income per share growth.

• IFRS total revenue increased 6% in the 2017 First Half. On a non-IFRS basis, total revenue increased 7%, with both software and services revenue growing 7%. First Half 2017 financial results included acquisitions completed during the 2016 Second Half, the most material of which was CST - Computer Simulation Technology AG, a technology leader in electromagnetic and electronics simulation which was acquired on September 30, 2016. Excluding acquisitions, non-IFRS total revenue and software revenue growth was 5%. (All growth rates in constant currencies.)
• Core Industries represented 68% of non-IFRS software revenue for the first half of 2017 while Diversification Industries represented 32%, growing from 31% in the prior year period. In Core industries, Transportation & Mobility and Aerospace & Defense grew slightly below the 7% software growth rate of the Company, with Industrial Equipment and Business Services achieving double-digits software revenue growth. (All growth references are in constant currencies.)
• In Diversification Industries, total non-IFRS software revenue increased double-digits and included High Tech, Consumer Products Good-Retail and Architecture, Engineering and Construction. The Company noted an improvement in Natural Resources. (All growth references are in constant currencies.)
• On a regional basis, non-IFRS software revenue was up 9% in Europe on both solid new licenses and recurring revenue performance and was led by Southern Europe and France. In the Americas, non-IFRS software revenue increased 7%, with strong new licenses revenue growth in North America and Latin America. In Asia, non-IFRS software revenue increased 5% with solid new licenses growth in South Korea and good non-IFRS software revenue growth across most geos, offset in part by weakness in Japan. (All growth rates in constant currencies.)
• Non-IFRS new licenses revenue and other software increased 7% and represented 28% of total non-IFRS software revenue. (All growth rates in constant currencies.)
• For the 2017 First Half non-IFRS recurring software revenue, representing 72% of total software revenue, increased 7% in constant currencies on strong maintenance subscription performance in all sales channels.
• Service non-IFRS revenue increased 7% in constant currencies during the 2017 First Half, led by 3DEXPERIENCE and manufacturing service engagements. The Company is continuing to pursue its objective of expanding its relationship with system integrators for 3DEXPERIENCE deployments.
• By product line and on a non-IFRS basis, SOLIDWORKS software revenue increased 13% led by strong new licenses activity across the globe. CATIA software increased 3% on solid growth in the Americas and Europe offset in part by a lower activity level in Asia. ENOVIA software revenue was up 2% on a high comparison base. Other Software increased 9% in total reflecting the addition of CST where revenue results were well in line with the Company’s expectation and, on an organic basis, growth was led by QUINTIQ. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 2%. Non-IFRS operating income increased 8% to €444.5 million. The non-IFRS operating margin was 28.2%, representing a decrease of 20 basis points and reflecting higher investments, particularly in research & development and sales, as well as acquisition dilution, partly offset by net favorable currency fluctuations.
• For the 2017 First Half, the IFRS effective tax rate was 32.8% compared to 27.5% in the prior year period. The non-IFRS effective tax rate increased to 33.3% from 31.1% in the 2016 First Half. The year-ago period IFRS and non-IFRS effective tax rates benefited from a tax reserve reversal.
• IFRS net income per diluted share increased 9% to €0.81. Non-IFRS net income per diluted share of €1.15 increased 6% or 12% excluding a 5 cents impact from a reversal of tax reserves in the 2016 First Half. Currency had an estimated net positive impact of 3 points.