Dassault Systèmes (Nasdaq: DASTY; Bourse de Paris), a worldwide leading software developer of CAD/CAM/CAE/PDM II products, today announced financial results for the 2000 first quarter.
Acquisition costs include goodwill and technnology amortization and other related acquisition costs . All financial figures in this press release are before these acquisition costs unless otherwise noted.
Services and other revenue increased 18,9% in the 2000 first quarter. Services and other revenue represented 12,6% of total revenue, compared to 12,7% in the year-ago period. For the quarter, 7,426 CATIA and 4,779 SolidWorks new seats were licensed.
Charles Edelstenne, Chairman and Chief Executive Officer of Dassault Systèmes, commented, "The first quarter was a good start with all regions contributing to solid revenue growth. Asia was especially strong, posting a 49% revenue increase over the previous year. SolidWorks had an outstanding quarter, with a 51,1% growth. PDM revenues increased 87.5%."
Operating income increased 4,5% in the 2000 first quarter to Euro 44,4 million, despite higher investments in R & D and marketing and sales. The operating margin was 33% in the 2000 first quarter.
For the 2000 first quarter, net income increased 10,9% to Euro 29.5 million, or Euro 0.25 per share. In the year-ago period, net income was Euro 26.6 million, or Euro 0.23 per share.
In order to conform with current year presentation, acquisition costs attributed to technology and previously included in the line item research and development have been reclassified to the line item entitled acquisition costs. The amount reclassified from R&D to acquisition costs was Euro 2.1 million in the first quarter of 2000 and Euro 1.3 million in the year-ago quarter. Before this reclassification, operating income would have been Euro 42.3 million and net income would have been Euro 28 million or Euro 0.24 per share.
Bernard Charles, President, said, "During the quarter, we won in excess of 2000 new customers, which is our highest performance so far, and we continued to execute our vision of offering innovative products through our five brands."
"CATIA Version 5 Release 3 for Windows 2000 was introduced and is now received as a proven production system for several of our targeted market segments. In addition, Deneb 5.2 was released and offers a tighter integration with CATIA and ENOVIA. With the acquisition of EAI-Delta, whose products are very complementary to the Deneb ones, we are increasing the gap, and can now offer to this fast growing market the widest digital manufacturing product portfolio available."
"Our PDM II strategy based on the delivery of e-business tools for enterprises with ENOVIA and Team PDM products with Smart Solutions now provides very robust foundations to our customers for product creation, product life management and collaboration, as witnessed by our 88% revenue growth in the domain."
"We are very pleased by both revenue and product performance at Solidworks. Besides a 51% revenue growth, a record number of new customers were won during the quarter, illustrating the substantial opportunities to be exploited in their market segment."
Thibault de Tersant, Executive Vice President, noted, "Dassault Systemes has confirmed its ability to outperform the MCAD industry by positioning itself in the fastest growing market segments, such as the Digital Manufacturing one. To this end, the acquisition of EAI-Delta reinforced our ability to play a major role in this market, and brought our Digital Manufacturing resources to 450 professionals."
Highlights of the Quarter
- Ilmor Engineering announced that they will utilize CATIA Solutions as the computer-aided design, manufacturing and engineering system for its Formula One engines. The contract represents a change from Ilmor's current provider and includes licenses for both CATIA and ENOVIA portal. Ilmor Engineering designs and manufactures racing engines exclusively for the West McLaren Mercedes Formula One Team, the 1998 Formula One World Champions.
- Toyota Motorsports GmbH announced that it had elected to use CATIA Solutions and ENOVIA Solutions for designing and managing the development of its Formula One cars. The agreement represents an initial 86 CATIA seats and 86 ENOVIA Portal licenses
- Ruecker AG selected ENOVIA as its e-business solutions for engineering. The agreement includes the purchase of 110 ENOVIA licenses, including Portal, and IBM training, consulting and services. Ruecker will use ENOVIA to manage the thousands of designs and assemblies it develops each year for many of the world's leading automobile manufacturers.
- In March Renault announced plans to put into production the digital manufacturing solutions of Deneb Robotics Inc. for all new programs in its Mechanical division. Additionally, it was announced that Renault had exceeded the original forecast threshold of 700 CATIA licenses in production and 1,000 CATIA trained users.
- Alamo Group, Inc. selected SolidWorks as the standard solid modeling solution for three of the company's subsidiaries including Bomford Turner in Worcestershire, England; McConnel® in Ludlow, England; and SMA in Orleans, France. SolidWorks software will be used to design the companies' complete lines of tractor-mounted mowers, vegetation maintenance equipment, and replacement parts for industrial and agricultural end-users. This equipment is used extensively by federal, state, county, and municipal agencies, as well as private contractors.
- Changchun Railway Car Company in China has standardized on SolidWorks software. Changchun Railway will use SolidWorks software and services for designing and manufacturing its railway and metro cars. Changchun Railway is the largest railway car manufacturer in China. The annual output of the company's newly built railway cars accounts for more than half of the total national output in China. SolidWorks' distributor in China, General Faith Int. Ltd. will provide ongoing service and support to Changchun Railway.
- SolidWorks 2000 Introduced: On February 14th SolidWorks 2000 was introduced. This release provides more than 150 major customer-driven enhancements and innovations, unprecedented ease-of-use, and a simple, comprehensive migration path from a 2D to 3D design environment. SolidWorks 2000 offers major enhancements in the areas of file management, large drawing performance, large assembly development, ease-of-use, modeling, surfacing, and drawing productivity.
- Digital Manufacturing Solutions Company Acquired. The Company announced its acquisition of EAI-DELTA GmbH, a subsidiary of EAI. EAI-DELTA provides a family of software and expertise for customers to virtually define and simulate general manufacturing activities within the factory floor aimed at building the most flexible and efficient production system. It focuses on production process planning and engineering of manual and partially automated assembly lines, and on plant operation control such as production work plans generation, line balancing, capacity planning, time and cost tuning. The combination of the EAI-DELTA, DENEB and SAFEWORK product lines will accelerate the execution of Dassault Systèmes' vision to address the Digital Manufacturing Market.
- CATIA Version 5 Release 3. On April 5, 2000, Dassault Systemes announced the general availability of CATIA Version 5 Release 3 (V5R3) for Microsoft Windows 2000. Users of CATIA V5R3 will benefit from the security of Windows 2000 and from the new functions. Included among these are additional new peripherals, which enhance the intuitiveness of CATIA Solutions on Windows platforms, and the multiple monitor function, which provides scalability so engineers can collaborate more closely when working on digital mockup visualizations.
- Dassault and IBM Expand e-business solutions for digital enterprise. IBM and Dassault Systèmes announced that ENOVIA Solutions will include IBM's WebSphere Application server as a key component of its e-business application architecture. This reinforces their strategic commitment to the digital enterprise as a way for manufacturers to accelerate and change how they manage and run their extended enterprise. Powered by WebSphere, ENOVIA Solutions integrates product creation with other components of the digital enterprise.