| Three months ended Sept. 30, | ||||||||||||
| In millions of Euros | 2008 U.S. GAAP | 2008 | 2007 U.S. GAAP | 2007 | ||||||||
| Adjustment | non-GAAP | Adjustment | non-GAAP | |||||||||
| Cost of services and other revenue | 37.6 | 38.4 | (0.2) | 38.2 | ||||||||
| Research and development | 78.1 | (2.3) | 75.8 | 76.3 | (3.0) | 73.3 | ||||||
| Marketing and sales | 91.3 | (0.8) | 90.5 | 83.5 | (1.0) | 82.5 | ||||||
| General and administrative | 26.5 | (0.9) | 25.6 | 24.4 | (0.9) | 23.5 | ||||||
| Total stock-based compensation expense | (4.0) | (5.1) | ||||||||||
(2) The non-GAAP percentage increase (decrease) compares non-GAAP measures for the two different periods. In the event there is a non-GAAP adjustment to the relevant measure for only one of the periods under comparison, the non-GAAP increase (decrease) compares the non-GAAP measure to the relevant GAAP measure.
(3) Based on a weighted average 119.9 million diluted shares for Q3 2008 and 120.4 million diluted shares for Q3 2007.
DASSAULT SYSTEMES
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
U.S. GAAP – NON-GAAP RECONCILIATION
(in millions of Euro, except per share data, unaudited)
Readers are cautioned that the supplemental non-GAAP 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 U.S. GAAP measurements. Also, our supplemental non-GAAP financial information may not be comparable to similarly titled non-GAAP measures used by other companies. Further specific limitations for individual non-GAAP measures, and the reasons for presenting non-GAAP financial information, are set forth in today’s press release with respect to other operating income and expense, net and in the Company’s annual report for the year ended December 31, 2007 on Form 20-F filed with the SEC on April 4, 2008 for the other non-GAAP financial measures. To compensate for these limitations, the supplemental non-GAAP financial information should be read not in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
| In millions of Euros, except per share data and percentages | Nine months ended Sept. 30, | Variation | ||||||||||||||
| 2008 |
Adjustment |
2008 | 2007 |
Adjustment |
2007 | U.S. GAAP |
Non-GAAP |
|||||||||
| U.S. GAAP |
(1) |
non-GAAP | U.S. GAAP |
(1) |
non-GAAP |
(2) |
||||||||||
| Total Revenue | € 951.9 | 1.9 | € 953.8 | € 895.7 | 9.1 | € 904.8 | 6% | 5% | ||||||||
| Total Revenue breakdown by activity | ||||||||||||||||
| Software revenue | 823.6 | 1.9 | 825.5 | 755.0 | 9.1 | 764.1 | 9% | 8% | ||||||||
| New Licenses | 292.4 | 284.8 | 3% | |||||||||||||
| Product Development | 1.4 | 4.2 | -- | |||||||||||||
| Periodic Licenses and Maintenance | 529.8 | 1.9 | 531.7 | 466.0 | 9.1 | 475.1 | 14% | 12% | ||||||||
| Recurring portion of Software revenue | 64% | 64% | 62% | 62% | ||||||||||||
| Services and other revenue | 128.3 | 140.7 | (9%) | |||||||||||||
| Total Software Revenue breakdown by segment | ||||||||||||||||
| PLM software revenue | 622.4 | 1.9 | 624.3 | 569.7 | 6.4 | 576.1 | 9% | 8% | ||||||||
| of which CATIA software revenue | 371.5 | 0.3 | 371.8 | 333.2 | 1.1 | 334.3 | 11% | 11% | ||||||||
| of which ENOVIA software revenue | 125.2 | 0.2 | 125.4 | 116.6 | 5.3 | 121.9 | 7% | 3% | ||||||||
| Mainstream 3D software revenue | 201.2 | 185.3 | 2.7 | 188.0 | 9% | 7% | ||||||||||
| Total Revenue breakdown by geography | ||||||||||||||||
| Americas | 291.2 | 1.5 | 292.7 | 285.8 | 4.3 | 290.1 | 2% | 1% | ||||||||
| Europe | 441.9 | 0.3 | 442.2 | 394.5 | 3.6 | 398.1 | 12% | 11% | ||||||||
| Asia | 218.8 | 0.1 | 218.9 | 215.4 | 1.2 | 216.6 | 2% | 1% | ||||||||
| Total Operating Expenses | € 781.1 | (55.2) | € 725.9 | € 747.9 | (48.2) | € 699.7 | 4% | 4% | ||||||||
| Stock-based compensation expense | 13.8 | (13.8) | - | 12.8 | (12.8) | - | -- | -- | ||||||||
| Amortization of acquired intangibles | 32.9 | (32.9) | - | 35.4 | (35.4) | - | -- | -- | ||||||||
| Other operating income and expense, net | 8.5 | (8.5) | - | 0.0 | -- | -- | ||||||||||
| Operating Income | € 170.8 | 57.1 | € 227.9 | € 147.8 | 57.3 | € 205.1 | 16% | 11% | ||||||||
| Operating Margin | 17.9% | 23.9% | 16.5% | 22.7% | ||||||||||||
| Income before Income Taxes | 180.9 | 57.1 | 238.0 | 155.8 | 57.3 | 213.1 | 16% | 12% | ||||||||
| Income tax expense | (54.3) | (21.1) | (75.4) | (53.7) | (16.2) | (69.9) | -- | -- | ||||||||
| Income tax effect of adjustments above | 21.1 | (21.1) | - | 16.2 | (16.2) | - | -- | -- | ||||||||
| Minority interest | (0.2) | (0.2) | -- | |||||||||||||
| Net Income | € 126.4 | 36.0 | € 162.4 | € 101.9 | 41.1 | € 143.0 | 24% | 14% | ||||||||
| Diluted Net Income Per Share (3) | € 1.06 | 0.30 | € 1.36 | € 0.85 | 0.35 | € 1.20 | 25% | 13% | ||||||||
