DASSAULT SYSTÈMES REPORTS 34% INCREASE IN FIRST QUARTER 1997 NET INCOME PER SHARE
Net Income FF 116.3 million, or FF 2.25 Per Share
Suresnes, France, April 21, 1997--Dassault Systèmes S.A. (Nasdaq: DASTY), a leading developer of mechanical CAD/CAM/CAE software products under the family name CATIA-CADAM solutions, today announced financial results for the first quarter ended March 31, 1997.
Dassault Systèmes reported that total revenue in the first quarter of 1997 rose 28% to FF 423.0 million, with software revenue increasing 27% and service and other revenue increasing 37% in comparison to the first quarter of 1996. First quarter 1997 operating income totaled FF 175.7 million, an increase of 55% from FF 113.2 million in the year-ago period.
The operating margin increased to 41.5%, up from 34.2% in the 1996 first quarter. Net income in the 1997 first quarter rose 34% to FF 116.3 million, or FF 2.25 per share, compared to first quarter 1996 net income of FF 86.5 million, or FF 1.68 per share.
Mr. Charles Edelstenne, Chairman and Chief Executive Officer of Dassault Systèmes S.A. commented, "Dassault Systèmes had an outstanding quarter. Financial results set a first quarter record. Software revenue was particularly strong, softening the seasonality we have historically experienced between the fourth and first quarters. Asia Pacific again led the way with a 125% increase in workstation unit sales and a 101% increase in total revenue. Further, Asia Pacific represented nearly 20% of our total revenue in the first quarter, up from 13% a year ago."
Mr. Thibault de Tersant, Executive Vice President, added, "Dassault Systèmes’ growth during the quarter reflects the strong performance of our core operations. The strength of the U.S. dollar had a minimal positive impact on our operating results. Currently, U.S. dollar exchange rate fluctuations impact only U.S. revenue, which represents 25% of total revenue. Furthermore, these fluctuations impacting revenue are, to a large extent, offset by U.S. dollar-denominated expenses."
In the 1997 first quarter, financial and other revenue totaled FF 12.5 million, including FF 4.3 million of net interest income, a net foreign exchange gain of FF 8.5 million, and other expenses of FF 0.3 million. In the corresponding 1996 period, financial and other revenue totaled FF 28.5 million, with FF 14.0 million of net interest income and FF 14.5 million representing a net foreign exchange gain.
Dassault Systèmes shipped 5,549 new workstation seats in the first quarter of 1997, representing an increase of 26% over the year-ago period. Leased seats represented 32% of total unit sales. As of March 31, 1997, the Company had 98,400 total seats worldwide. Workstation license revenue increased 41% in the first quarter of 1997 in comparison to the year-ago period. Recurring software revenue represented 52% of total software revenue, compared to 45% in the first quarter of 1996.
Mr. Bernard Charles, President of Dassault Systèmes S.A., commented, "During the quarter we further enhanced our leadership position in the aerospace and automotive markets. We recently announced that we signed an alliance agreement with Lockheed Martin. Following a year-long evaluation process, Lockheed Martin selected Dassault Systèmes as its premier supplier of next generation, computer-based aircraft development tools and processes. We believe our strength in the aerospace sector will be a major factor driving our increased penetration of the U.S. market in 1997. As an example, Boeing continues to rapidly expand its usage of CATIA. In the automotive arena, we continue to penetrate large automotive accounts as well as advance our goal of increasing our presence with suppliers. We also won two new automotive accounts in the Asia region for the powertrain sector: Perusahaan Otomobil Nasional (Proton), the largest Malaysian manufacturer of motor vehicles and related products, and Tata Engineering and Locomotive Company (Telco), a leading manufacturer of commercial automotive vehicles in India."
"During the second quarter we will make available a new release, CATIA Version 4 Release 1.8. Among many impressive enhancements, this release will include our first Java application for the Internet, allowing non-CAD users to access and navigate within a virtual product model from any personal computer. We are very excited about this application and its importance to our customers who are searching to extend data access beyond CAD users. We believe this application answers their needs of accessing the product development process from any authorized employer of the company, its partners or suppliers, either on-site or from remote locations on a traditional phone line."