Dassault Systemes (DS) (Paris:DSY) (NASDAQ:DASTY) reports IFRS unaudited financial results for the first quarter ended March 31, 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
First Quarter 2009 non-IFRS financial results in line with preliminary announcement
Net operating cash flow of €96 million for Q1 and net cash position of €702 million
DS updates 2009 financial objectives
Bernard Charlès, Dassault Systemes President and Chief Executive Officer, commented, “As previously announced, the first quarter brought further deterioration of the economic environment which led to a significant decrease in our new license activity across brands and geographic regions. Despite this, first quarter earnings and margin results were well in line with our objectives, thanks to our cost savings.
“Notwithstanding the environment, we made solid progress in strengthening our market leadership. In Mainstream 3D we reached a major milestone with SolidWorks recently crossing the millionth user mark. This is no surprise given its unsurpassed focus on its community of SolidWorks users and value-added resellers.
“During the period we continued to advance our diversification strategy, bringing PLM to a broad range of industries. Recent ENOVIA wins in apparel, consumer goods and pharmaceuticals illustrate this quite well. Additionally, these wins demonstrate the importance of our software solutions in bridging customers’ business process initiatives in compliance, eco-design and sourcing, among others, with product development.”
IFRS and non-IFRS total revenue increased 1% on a reported basis. In constant currencies, IFRS and non-IFRS total revenue decreased 6%.
IFRS and non-IFRS software revenue increased 1% on a reported basis. In constant currencies, IFRS software revenue decreased 5%. Non-IFRS software revenue also decreased 5% due to a decrease in new licenses revenue of 40% which more than offset non-IFRS recurring software revenue growth of 15% (all figures are in constant currencies).
Both PLM and Mainstream 3D software results reflected the impact of the current global economic downturn with lower new licenses revenue offsetting growth in recurring software revenue. IFRS PLM software revenue decreased 7% in constant currencies. Non-IFRS PLM software revenue decreased 6% with CATIA software revenue lower by 11% and ENOVIA software revenue lower by 18% offset in part by double-digits software revenue growth from SIMULIA (all figures in constant currencies). Mainstream 3D IFRS and non-IFRS software revenue decreased 2% in constant currencies.
Services and other revenue decreased 7% in constant currencies, in part reflecting the DSF divestiture during 2008 offset to some extent by growth in consulting during the first quarter.
IFRS operating margin was 13.0%. In the year-ago quarter, the IFRS operating margin of 23.5% benefited from a one-time gain on sale of real estate. Non-IFRS operating margin decreased to 19.4% compared to 22.8% in the year-ago quarter reflecting the downturn in the economy, but was in line with the Company’s objective on good execution of its cost savings program.
Financial revenue and other, net, totaled €0.3 million compared to €0.2 million in the 2008 first quarter.
IFRS earnings per diluted share decreased 50% to €0.24. Non-IFRS earnings per diluted share were in line with the Company’s objective, decreasing 10% to €0.37 primarily reflecting a decrease in non-IFRS operating income of 14%.