DASSAULT SYSTÈMES S.A. REPORTS HIGHER SECOND QUARTER REVENUES AND NET INCOME
Pro Forma Earnings Per Share FF 0.94
Suresnes, France, July 31, 1996--Dassault Systèmes S.A. (Nasdaq: DASTY), a leading developer of computer aided design (CAD), computer aided manufacturing (CAM), and computer aided engineering (CAE) software products, announced a 56.6% increase in second quarter net income.
Total revenues for the second quarter ended June 30, 1996 were FF 291.2 million, up 20.6% from second quarter 1995 total revenues of FF 241.5 million. Software revenues were FF 240.2 million for the quarter, a 21.7% increase over the second quarter of 1995. Recurring software revenue increased 21.2% to FF 136.4 million in the 1996 second quarter compared to FF 112.5 million in the 1995 second quarter. At the end of the second quarter, the Company had a total of 46,640 workstation seats worldwide. Sales from services and other revenue were FF 51.0 million, up 15.8% from the comparable year ago period.
Net income for the second quarter of 1996 rose 56.6% to FF 50.3 million, up from FF 32.1 million for the second quarter of 1995. Net income for the 1996 period benefited from increased revenues from software licenses and exchange gains. Pro forma earnings per share were FF 0.94 in the 1996 second quarter, an 80.7% increase over pro forma earnings per share of FF 0.52 earned in the comparable period last year. Pro forma earnings per share are presented for all periods to reflect the impact of the payment of an exceptional dividend prior to the Initial Public Offering.
Dassault Systèmes historically has experienced a seasonal decline in revenue in the second and third quarters of each fiscal year, due primarily to capital budgeting cycles of customers and to European holiday patterns. As a result, the Company's second and third quarter software revenue, total revenue, operating income and net income have generally been lower than in the first and fourth quarters.
For the six months ended June 30, 1996, revenues increased 23.9% to FF 621.8 million compared to FF 501.7 million for the same period a year earlier. Net income more than doubled to FF 136.8 million from FF 63.5 million and pro forma earnings per share increased 138.7% to FF 2.53 from FF 1.06 in the year ago period. For the six months ended June 30, 1996 workstation seat sales totaled 7,290, an increase of 27% over 1995 six-month sales of 5,740 seats. Recurring software revenue grew 21.3% to FF 266.3 million, compared to FF 219.6 million in the 1995 period.
Research and development expenses in the second quarter totaled FF 136.2 million, or 46.8% of total revenues, compared to FF 117.5 million, or 48.7% of total revenues, during the prior year period.
Marketing and sales expenses were FF 24.6 million, or 8.4% of total revenues in the second quarter of 1996, compared to FF 18.3 million, or 7.6% of total revenues in the second quarter of 1995. General administration expenses were FF 23.7 million, or 8.1% of total revenues in the second quarter of 1996, compared to FF 16.4 million, or 6.8% of total revenues in the second quarter of 1995. The increase in general and administration expenses primarily reflects the costs incurred by the Company in connection with the Initial Public Offering.
For the second quarter of 1996, operating income totaled FF 52.6 million, an increase of 19.0% over second quarter 1995 operating income of FF 44.2 million.
Financial and other revenue for the second quarter of 1996 was FF 33.3 million, compared to FF 15.9 million for the second quarter of 1995. This increase was due primarily to a net foreign exchange gain of FF 18.2 million in the second quarter of 1996, from a net foreign exchange loss of FF 1.0 million in the second quarter of 1995. Year-to-date the Company recorded a net foreign exchange gain of FF 32.6 million, compared to a net foreign exchange loss of FF 24.1 million for the first six months of 1995.
Mr. Charles Edelstenne, Chairman and Chief Executive Officer of Dassault Systèmes S.A., commented, "I am pleased to report that Dassault Systèmes had an outstanding quarter. Our sales increase in the quarter reflected our continued success with our product development strategy and strong demand across all of our products. In addition, the investments we have made with IBM in marketing and sales also contributed to the increase in sales during the quarter. From a geographical standpoint, 1996 sales continue to be robust."
Bernard Charles, President of Dassault Systèmes S.A., added, "We continued to build strategic relationships with key customers and gained market share during the quarter. This illustrates the success we have experienced in partnering with our customers and providing them with solutions to meet their multiple needs. We have begun to see the acceptance of CATIA Version 4.1.6 which was made available on March 16, 1996. This version expands the breadth of application coverage, including among other products a STEP-based Assembly Navigator, the user-friendly Dynamic Sketcher and 3D Tolerancing products, as well as availability on Silicon Graphics workstations. This new release illustrates our product goals of providing our customers ease of use and flexibility with a multiplatform product. In addition, Version 4.1.6 further strengthens our digital mock-up process centric capabilities and broadens our technology foundation."
The Company completed a global initial public offering of 8,984,313 shares (including the over-allotment option) of its common stock at a price of US $23.00 per American Depositary Share (FF 118.02 per share). The offering was more than 41 times oversubscribed; all of the proceeds went to selling shareholders.