DASSAULT SYSTEMES ANNOUNCES 1998 FIRST QUARTER TOTAL REVENUE INCREASES 24% AND NET INCOME PER SHARE INCREASES 20%
REPORTS TOTAL REVENUE OF FF 596.2 MILLION AND NET INCOME PER SHARE OF FF 1.25
Suresnes, France, April 22, 1998--Dassault Systèmes S.A. (Nasdaq: DASTY; Bourse de Paris), a worldwide leading software developer of CAD/CAM/CAE/PDM (computer aided design/manufacturing/engineering/product data management) products, today announced financial results for the first quarter ended March 31, 1998.
As previously announced, Dassault Systèmes completed the acquisition of Deneb on December 30, 1997 and IBM's ProductManager on April 1, 1998. First quarter pooled pro forma 1997 financial results are presented for comparison purposes and include the impact of ongoing operations of Deneb as if the acquisition had occurred on January 1, 1997. All references in the press release to 1997 figures are pro forma.
For the 1998 first quarter total revenue increased 24% to FF 596.2 million, compared to first quarter 1997 total revenue of FF 480.8 million. Total software revenue increased 25% to FF 530.2 million in the 1998 first quarter, up from FF 423.0 million in the year-ago period. Recurring software revenue represented 51% of total software revenue. New CATIA-CADAM workstation seats shipped in the quarter totaled 6,005, and new SolidWorks seats shipped totaled 3,062. Service and other revenue totaled FF 66.0 million and represented 11% of total revenue.
Operating income increased 33% to FF 231.2 million in the recent quarter, compared to FF 174.0 million in the 1997 period. The operating margin in the 1998 first quarter increased to 38.8%, up from 36.2% in the 1997 first quarter. Net income in the 1998 first quarter rose 30% to FF 141.3 million, compared to first quarter 1997 net income of FF 109.1 million. On a diluted per share basis, 1998 first quarter net income increased 20% to FF 1.25 on an 8% increase in weighted average shares outstanding, compared to FF 1.04 in the year-ago period.
Charles Edelstenne, Dassault Systèmes' Chairman and Chief Executive Officer, commented, "Dassault Systèmes had a very solid first quarter. The U.S. and European regions experienced very good revenue growth with overall revenues increasing 29% and 28%, respectively. In particular, software revenues grew 35% in the U.S. Total revenues in Asia increased 9%, notwithstanding the financial difficulties in certain parts of that region."
Bernard Charles, President of Dassault Systèmes, commented, "During the first quarter, Dassault accomplished several important developments. In February, we announced the formation of ENOVIA Corporation through a new strategic alliance with IBM. Pursuant to this alliance, Dassault acquired IBM's product data management solution, ProductManager*, and IBM created two organizations dedicated to marketing ENOVIA and rendering implementation services. We are pleased to announce that Volvo, at the group level, has selected both ENOVIAVPM** and ENOVIAPM** in order to manage its product, plant and production information and to optimize such products and processes in a fully digital manner.
"In addition, during the quarter we previewed CATIA Version 5, the next generation of our CATIA Solutions product line. Version 5 is a process-centric system that offers significant improvements in ease of use and scalability to our customers with a native Windows NT and UNIX single system architecture. By fully utilizing an object-oriented technology, Version 5 brings powerful and innovative modeling concepts, enabling capture and reuse of specifications."
Thibault de Tersant, Executive Vice President of Dassault Systèmes, commented, "We are pleased to report that the integration of our acquisitions is progressing nicely. Dassault Systèmes ends the first quarter with a very strong financial position, with cash in excess of FF 1.4 billion. Moreover, based upon activity levels during the quarter, our visibility is very good."
Financial and other revenue totaled FF 10.1 million in the 1998 first quarter, compared to FF 8.2 million in the first quarter of 1997. In the 1998 first quarter, the Company had a net foreign exchange loss of FF 1.2 million and net interest income of FF 11.3 million, compared to a net foreign exchange gain of FF 8.2 million and no interest income in the year-ago period.