2000 Revenue Rises 25% to Euro 632.4 million and EPS increases 14% to Euro 1.17
Process-centric Revenue Up 23%, SolidWorks® Up 72% and PDM Revenue Up 88% in Fourth Quarter
Paris, France, February 6, 2001--Dassault Systemes (DS) (Nasdaq: DASTY; Euronext Paris: #13065, DSY.PA), a worldwide leading software developer of product lifecycle management (PLM) solutions, today announced financial results for the 2000 fourth quarter and year ended December 31, 2000.
Acquisition costs include goodwill and technology amortization and other related acquisition costs. All financial figures in this press release are before these acquisition costs unless otherwise noted.
Total revenue increased 33% to Euro 196.5 million in the 2000 fourth quarter, compared to Euro 147.5 million in the 1999 fourth quarter. Software license revenue, which represents 83% of total revenue, grew 29% to Euro 163.2 million, while services increased 58% to Euro 33.3 million. Recurring software revenue continued to represent a significant portion of total software revenue, totaling 43% of total software revenue for the full year 2000.
Net income increased 23% to Euro 47.0 million, or Euro 0.40 per share in the 2000 fourth quarter. DS completed the acquisition of Spatial Corporation, the leading provider of world-class 3D software components, on November 14, 2000. DS’ financial results for the 2000 fourth quarter include an Euro 2 million, or Euro 0.02 per share operating loss from Spatial Corporation. In the year-ago period, net income was Euro 38.2 million, or Euro 0.33 per share.
Charles Edelstenne, Chairman and Chief Executive Officer of DS, commented, “Dassault Systemes continues to deliver outstanding performance, and 2000 was no exception. From a financial perspective, our annual revenue growth was very robust at 25% and reflects our strong leadership.”
Thibault de Tersant, Executive Vice President, commented, “From a profitability standpoint, our results exceeded expectations as consensus analysts’ estimates do not include Spatial. Net income grew 29% and earnings per share grew 27% to Euro 0.42 per share before the inclusion of Spatial. All geographies contributed to our performance, with Europe representing 53% of total revenue, Americas 30% and Asia 17%.”
For the year ended December 31, 2000, total revenue increased 25% to Euro 632.4 million, compared to Euro 504.7 million in 1999. Software revenue increased 26% and represented 86% of total revenue in 2000. Net income rose 18% to Euro 139.2 million, or Euro 1.17 per share in 2000, compared to Euro 117.6 million, or Euro 1.03 per share in 1999.
9,070 CATIA seats were licensed in the 2000 fourth quarter and 31,290 for all of 2000. SolidWorks licensed 6,421 seats in the 2000 fourth quarter and 22,053 for the full year.
Bernard Charles, President, stated, "DS made significant progress in 2000, significantly outpacing the performance of our competitors and placing DS among leading global software players. Our performance this year clearly underscores the importance of 3D and Product Lifecycle Management to manufacturing companies, both large and small, throughout the world. DS had a strong finish to an excellent year. All major product lines contributed to the 33% growth in total revenue in the fourth quarter. SolidWorks delivered particularly outstanding results with revenue growth of 72% in the fourth quarter. ENOVIA and Smart Solutions also turned in excellent top-line results, leading our PDM revenues to increase 88% in the final quarter of 2000.
"Our process-centric product family, led by CATIA, introduced important new product releases in 2000, designed to broaden the product offerings for target end markets in addition to increasing our presence among small and mid-sized organizations. CATIA's most recent release, V5R5, was introduced in November and momentum continues to build. From a financial perspective, annual revenue growth in the process-centric market was quite good at 17% year over year, growing substantially faster than the industry.
"SolidWorks had an excellent year in 2000, furthering its industry-leading position in the mainstream market. Total revenue increased 62%, reflecting both strong market dynamics and SolidWorks' leadership position in the Design Centric market. The company moved forward on a 3D-commerce initiative by introducing 3D PartStream.NET, a collaborative design application that enables manufacturers to integrate 3D models into web-based product catalogs and e-commerce systems.
"Our PDM family, including ENOVIA and Smart Solutions, ended the year strongly, with outstanding revenue results, key customer wins and major product releases. For the year, PDM revenues increased 82%, which clearly illustrates that we deliver mission critical solutions to help customers achieve Product Lifecycle Management with a seamless link between product, process and resource data, across their extended enterprise."
DS is very well positioned to continue to grow much faster than the overall industry due to strong demand for its products and solutions. While the Company's financial results are not immune to currency fluctuations and economic conditions, particularly in the US and Japan, the Company believes that 2001 will be a year of strong growth and profitability. The current outlook for 2001 anticipates total revenue to approximate Euro 750 to Euro 755 million. Earnings per share in 2001 are expected to approximate Euro 1.33 to Euro 1.35 per diluted share, reflecting current revenue expectations, investment plans and the impact of the recently completed Spatial Technology acquisition.
NEW PRODUCT LAUNCHES
During the quarter, DS announced the availability of CATIA Version 5 Release 5 (V5R5) for Windows and Unix, ENOVIA Version 5 Release 5 (V5R5) and DELMIA Version 5 Release 5 (V5R5).
CATIA V5R5 integrates Product Lifecycle Management (PLM) solutions into the strategic business environment of companies of all sizes, directly bringing improved quality, reduced development time and costs, and increased competitiveness. V5R5 combines unique product modeling capabilities and integrated associative applications, leading the industry in usability and process coverage. CATIA V5R5 helps ensure maximum productivity in a collaborative environment during the creation of modification processes of any product - from prismatic components and small product assemblies, to complex power train castings, styled surface components and complex multilevel assemblies.
ENOVIA Portal Solutions V5R5 is a set of e-business solutions for PLM. The solutions provide unique and easy access to all product data, including geometry, PDM, legacy, Product Process Resource (PPR) and web-based information. By enabling all members of the extended enterprise to collaborate in the product life cycle, using powerful display and manipulation functions, the solutions shorten design time and increase product innovation.
DELMIA V5R5 is a highly efficient process planning solution for the creation, validation and documentation of the detailed manufacturing processes for large complex assemblies, such as aircraft, naval ships and submarines, and automobiles. The solution provides an intuitive process-planning paradigm that is first used as the product design is being conceptualized and is increasingly populated as the production system design matures. Additionally, the solution can support the execution of the production system during launch and for the life of the product.
SmarTeam announced the availability of SmartInventor, a new PDM solution for Autodesk Inventor users. The SmartInventor solution is a Windows and Web-based product collaboration and document management tool that allows designers, engineers and manufacturing managers to share information effectively, better control the design and maintenance of documentation and drawings, and improve the data flow within their organizations.
ADDITIONAL HIGHLIGHTS OF THE QUARTER
In November, the Company completed the acquisition of Spatial Technology Inc.'s 3D software component business division. The component business is known as Spatial Corporation and operates as an independent, wholly owned subsidiary of DS. Spatial leverages the technical excellence of all the Dassault companies to offer new and existing 3D technologies as component extensions of the Spatial product family.
SolidWorks acquired privately held CIMLOGIC and now provides powerful design solutions that incorporate innovative part libraries, enabling users to have instantaneous access to a wide variety of standard components. The acquisition enhances SolidWorks' mission to deliver the power of 3D to everybody in engineering and manufacturing. CIMLOGIC has been a SolidWorks Gold Partner for four years, providing unique products that demonstrate single-window integration and full associativity with SolidWorks software.
ALSTOM Transport selected ENOVIA products for the development and the management of the company's entire railway systems product line. The contract includes the purchase of 700 licenses of ENOVIA VPM and the implementation of 1250 ENOVIA V5 licenses by January 2002. An estimated 2500 professionals at 20 sites worldwide will eventually use ENOVIA, making it ALSTOM Transport's standard PLM solution.
Eisenmann Grenoble, selected CATIA Version V5 for the design, analysis and manufacture of its products. In addition, Eisenmann Grenoble sought a flexible system that could grow in sophistication with its needs. DS' Lyon agency will provide service, training and support to the Eisenmann designer team in Grenoble.
Benetton Formula 1 will be designing the Mild Seven Benetton Playlife team car exclusively using CATIA Solutions, and will use ENOVIA Solutions for its PLM. The agreement, initially for five years, represents a change from Benetton's current CAD/CAM/CAE/PLM supplier, and includes 60 seats of CATIA together with substantial IBM implementation services. The first car to be designed completely with CATIA Solutions will race in the 2002 season.
Alusuisse Road & Rail AG selected CATIA Version V5 as its computer-aided design, manufacturing, and engineering (CAD/CAM/CAE) system. CATIA enables concurrent engineering, allowing for Alusuisse engineers, customers and development partners to define parts and assemblies in real time. Concurrent engineering with CATIA V5 enables employees to work more efficiently, reducing overall development and response time.
Oreca Motorsport will be using CATIA Solutions for its new LeMans prototype cars. Oreca Motorsport engineers will install CATIA to design, manufacture and manage modifications of all aspects of its LeMans prototype cars. The company tested its first CATIA-designed prototype car in January 2001. In addition to the purchase of CATIA licenses, the agreement includes DS and IBM services and support related to implementing the world's leading CAD/CAM/CAE software.
SolidWorks entered into a strategic alliance with TechniCon Corporation, which allows for SolidWorks' revolutionary 3D PartStream.NET(sm) Service to be fully integrated with TechniCon's Custom Commerce technology, enabling TechniCon to create fully customized, 3D-enabled online catalogs for manufacturing companies. This new alliance represents the first in a series of future relationships that SolidWorks will establish with its "3D Publishing Partners," companies that provide Web-based services for online product catalogs, e-commerce systems, and web-based trading exchanges.
DS and Silicon Graphics Inc. signed a Component Application Architecture (CAA) V5 development partnership to develop high end immersive solutions fully integrated within the ENOVIA DMU navigator environment. SGI has already been successfully using the next generation CAA V5 to develop its first application, the Immersive Solutions Review On CAA V5, which enables the integration of customers' processes into a single environment.
DS and Dimensional Control Systems Incorporated (DCS) signed a CAA V5 development partnership. This collaboration provides customers within the Design and Manufacturing Industries, such as automotive, aerospace, shipbuilding, and machinery, with unmatched capabilities for achieving dimensional integrity and product quality through a single V5 window.
SolidWorks' strategic alliance with i-MARK, Inc. enables SolidWorks' revolutionary 3D PartStream.NET(SM) service to be fully integrated with i-MARK's SmartSITE(TM) solutions. This alliance represents a significant milestone in the expansion of SolidWorks' 3D Publishing Partner Program.
The Guidance and Control Systems (G&CS) division of Litton Industries chose SolidWorks for the division's standard solid modeling solution. Because of its powerful modeling capabilities, ease-of-use, and affordability, Litton is using 50 seats of SolidWorks to design and manufacture sophisticated systems for airborne, ground, sea, and space applications. Litton's G&CS division is a leading developer and producer of sophisticated systems for military applications.
Nordson Corporation selected SolidWorks software as its standard solid modeling solution. Nordson has purchased 124 seats of SolidWorks to date and will implement another 76 licenses before the end of 2001. Nordson chose SolidWorks for its ease-of-use and short learning curve, and will implement the software throughout its adhesive dispensing and nonwoven fiber, coating and finishing, and advanced technology business segments to reduce design time and increase productivity.
CAC 40. The Company is now included in the CAC 40 index of blue chip stocks on the Paris Bourse, following the decision by the Conseil Scientifique des Indices (Scientific Council on Indexes) of the Paris stock exchange. The CAC 40 index consists of 40 French and international stocks listed on the Paris Bourse in Paris, chosen primarily for their market size and liquidity.
Excellence in Manufacturing Technology Achievement Award for 2000. In December, SolidWorks Corporation received Machine Design Magazine's Excellence in Manufacturing Technology Achievement Award for 2000. The award is given to companies that develop innovative and cost-effective products, based on 5,000 reader responses. Machine Design Magazine, available through Penton Publications, provides comprehensive application case histories along with design engineers with complete technical news coverage.
"Named Best New CAD Product." SolidWorks Corporation, announced that SolidWorks 2000 received the award for "Best New CAD Product" at the Computers in Manufacturing (CIM) 2000 show in England. SolidWorks 2000, the company's core 3D CAD software package, provides solid modeling capabilities in the areas of file management, large drawing performance, large assembly development, modeling, surfacing, and drawing productivity. CIM 2000 is the industry's leading IT trade show covering all aspects of manufacturing, including e-business, supply chain, e-procurement, enterprise integration, manufacturing, and design.
Some of the above statements that are not historical facts, including but not limited to certain statements made regarding the Company's outlook, are statements of future expectations and other forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended) that are based on management's current views and assumptions and that involve known and unknown risks and uncertainties that could cause actual results or performances to differ materially from those in such statements due to, among other factors: (i) market demand for our products and services, (ii) new product developments and technological changes, (iii) global economic conditions, (iv) our ability to recruit and retain skilled personnel, and (v) currency fluctuations. Unfavorable changes in any of the above or other factors listed under "Risk Factors" from time to time in the Company's SEC reports including the Form 20F for the year ended December 31, 1999 which was filed with the SEC on June 30th 2000, could materially affect the Company.