Dassault Systemes -- dsweb.com -- Reports 23% Increase in First Quarter Revenue; PDM Revenue Up 75%.Business Editors PARIS--(BUSINESS WIRE)--April 24, 2001 Dassault Systemes Dassault Systemes (Dassault Systèmes S.A.) (Pronounced - Dasoh) (NASDAQ: DASTY; Euronext: 13065) is a leading company specializing in 3D and PLM (Product Lifecycle Management) software. (DASTY) -- 2001 First Quarter Revenue Totals Euro 165.1 Million, Up From Euro 134.7 Million In Year-ago Quarter -- 2001 First Quarter EPS Euro 0.25 Dassault Systemes (DS) (Nasdaq: DASTY; Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam and Brussels exchanges in September 2000 to form Euronext NV, which is the second largest exchange in Europe behind the London Stock Exchange. : #13065, DSY DSY Drum Storage Yard .PA), a worldwide leading software developer of product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. management (PLM (Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design ) solutions, today announced financial results for the first quarter ended March 31, 2001. 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. FINANCIAL HIGHLIGHTS Total revenue increased 23% to Euro 165.1 million in the first quarter of 2001, up from Euro 134.7 million in the first quarter of 2000. Software license revenue, representing 88% of total revenue in the 2001 first quarter, grew 23% to Euro 144.7 million, up from Euro 117.7 million in the year-ago quarter. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. software revenue, which gives the Company good revenue visibility, represented 47% of total software revenue in the 2001 first quarter. Services increased 20% to Euro 20.4 million in the 2001 first quarter, compared to Euro 17.0 million in the comparable 2000 period. 8,078 CATIA A family of 2D and 3D CAD programs from IBM. CATIA was one of the first CAD programs to provide 3D solid modeling. The program was developed by Dassault Systems, a French aerospace company. and 5,824 SolidWorks seats were licensed in the first quarter of 2001. While first quarter 2001 total revenue increased 23% year-over-year, net income was level with the year-ago quarter, reflecting accelerated investments in R&D and marketing and sales as well as currency fluctuations. Specifically, research and development increased 27%, with marketing and sales up 51%. Net income totaled Euro 29.9 million or Euro 0.25 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the 2001 first quarter, compared to the 2000 first quarter where net income totaled Euro 29.5 million or Euro 0.25 per diluted share. Charles Edelstenne, Chairman of DS, commented, "DS' first quarter was marked by solid revenue growth and significant investments in our future. I believe DS is well-positioned due to the strategic importance of our products and solutions to companies throughout the world." Thibault de Tersant, Executive Vice President, commented, "DS' 23% increase in revenue this quarter was a result of good execution across our brands and in all geographic regions. Excluding PDM (1) (Product Data Management) An information system used to manage the data for a product as it passes from engineering to manufacturing. The data includes plans, geometric models, CAD drawings, images, NC programs as well as all related project data, notes and , Process-centric revenue, led by CATIA, grew 15%. Design-centric revenue with SolidWorks grew 44%. PDM revenue, with ENOVIA and Smart Solutions, was up sharply at 75%. Based upon these results, we are maintaining our objective for total 2001 revenue of approximately Euro 750 million and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of Euro 1.33, but we recognize that significant currency fluctuations or further weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the economic environment,
particularly in Europe, could have a negative impact."
Bernard Charles Bernard Charles is the CEO of Dassault Systemes. References
MCAD Mechanical Computer Aided Design MCAD Medium-Chain Acyl-CoA Dehydrogenase (inherited metabolic disease) MCAD Minneapolis College of Art and Design to PLM and 3D commerce more broadly. "Our PLM software applications, spanning both our process-centric and design-centric product families, are used by over 45,000 customers to manage product lifecyles for products ranging from individual machine parts to automobile engines to entire jumbo aircraft. Our applications enable PLM participants to work in a collaborative environment to facilitate innovation, shorten time to market, reduce manufacturing costs and improve product value. These are compelling attributes of our products and solutions. "Our strategy is straightforward. Based on our leading position in product authoring, we want to provide leading PLM software applications enabling seamless product information exchange throughout the enterprise and with enterprise partners, and to establish DS as the provider of reference for 3D software applications." NEW PRODUCT LAUNCHES CATIA V5R6 incorporates major improvements to existing products and introduced 17 new products, bringing the total number of CATIA V5 products to 78. CATIA V5R6 significantly improves every development step of a product by providing companies of all sizes with a full range of PLM solutions to facilitate innovation and continuously increase design productivity across the collaborative digital enterprise in real time. With CATIA V5R6, DS delivers the new Component Application Architecture (CAA Caa See CCC. ), an open architecture that allows users to integrate their own know-how into specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. CATIA applications. In CAA V5R6, companies benefit from an unprecedented openness that they can leverage across their PLM systems to their competitive advantage. DELMIA DELMIA Digital Enterprise Lean Manufacturing Interactive Application Introduced Process Engineering(TM) Solutions that, when combined with existing DELMIA applications, provide the user with a complete solution for manufacturing design and optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , from product conceptual design through the entire planning process and production execution. This release provides improved part motion definition, automatic path finding and exclusion of design contacts in collision checking. The V5 Knowledgeware functions can now be created referencing process activities. With V5R6, the new products enable the user to evaluate the visibility and the reachability of workstation components and to perform ergonomic ergonomic - Concerning ergonomics or exhibitting good ergonimics. analysis. SolidWorks introduced SolidWorks 2001, the latest release of the company's award-winning, Windows(R)-based 3D mechanical design software. SolidWorks 2001 provides over 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 2001 offers major enhancements in user interaction, sheet metal creation, feature and part development, assembly design tools, drawing performance and Internet collaboration tools A collaboration tool is something that helps people collaborate. The term is often used to mean collaborative software, but collaboration tools were being used before computers existed, a piece of paper can for example can be used as collaboration tool. . Smart Solutions launched SmartBOM(TM), a collaborative Bill of Materials The list of components that make up a system. For example, a bill of materials for a house would include the cement block, lumber, shingles, doors, windows, plumbing, electric, heating and so on. (BOM) PLM solution. With over half of all components typically outsourced, collaboration around BOMs is key to product success. SmartBOM enables manufacturers to incorporate their suppliers and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and vendors into the product definition process from as early as the prototype stage, and through engineering changes in a simple standard format. Further, SmartBOM, allows for management of the BOM throughout its lifecycle, from concept engineering changes, allowing people in and outside an organization to access and modify the BOMS and to communicate these changes to the originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting and others. Smart Solutions introduced mySmarTeam, which enables companies to communicate and collaborate with their supply chain, remote personnel and OEM vendors, connecting together engineering, manufacturing, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and sales, and also released mySmartMeeting, a powerful Web-based collaboration tool that enables its customers and their supply chains to collaborate on product development through a secure, online meeting space. Users can view, annotate annotate - annotation and comment in real-time on drawings, BOMs, presentations, engineering change orders and other critical business information. Spatial announced that Version 6.3 of its ACIS 3D Geometric Modeler is now available and is designed for technical excellence, enhanced quality and reliability of 3D solid modeling, and increased customer support throughout all stages of development. ACQUISITIONS & PARTNERSHIPS DS announced its intention to acquire SRAC SRAC Southern Regional Aquaculture Center SRAC Short-Run Average Cost SRAC System Realignment and Categorization SRAC Scenic Roads Advisory Committee SRAC Structural Research and Analysis Corporation , which would position DS as the pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae supplier of CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. and CAD integrated design The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. analysis software in the process and design-centric markets. Additionally, it expands sales of CATIA V5 Analysis solutions by adding key analysis expertise, strengthening the long and successful DS-IBM partnership. CATIA customers will now benefit from SRAC's 15 years of experience and expertise in supporting analysis products and processes. SRAC's COSMOS(TM) product line, tailored to the design-centric market, complements the high-end CATIA V5 Analysis solutions for the process-centric market. These two solutions will redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. customer expectations for front-end analysis solutions and set new standards for CAE industry leadership. Smart Solutions and Oce-USA partnered to deliver integrated product collaboration and enterprise print management solutions to manufacturers. The integration will provide customers with the ability to track, manage, archive and print a full range of product development information over networks and the Internet. Additionally, the resulting ability to share information enterprise-wide within an organization and throughout its extended enterprise via the Web will save customers substantial time and expense. Spatial and Trace Software, an application developer for the mechanical and electrical marketplace, released ACIS-enabled Trace Parts for Autodesk Inventor Autodesk Inventor is the 3D parametric solid modeling package produced by U.S.-based software company Autodesk. It competes with other CAD systems such as SolidWorks, Pro/ENGINEER, and Solid Edge. (TM). Their strong OEM partnership strongly contributed to its rapid release of 3D Parts Library. Trace Parts for Inventor INVENTOR. One who invents or finds out something. 2. The patent laws of the United States authorize a patent to be issued to the original inventor; if the invention is suggested by another, he is not the inventor within the meaning of those laws; but in that is one of the first ACIS-enabled applications to be released under Spatial's new OEM Partner Program and demonstrates how ACIS licensees benefit from Spatial's dedication to customer success. ADDITIONAL HIGHLIGHTS OF THE QUARTER Hyundai Motor Company The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, is South Korea's largest and the world's sixth largest Automaker.[1] Its headquarters are in Seoul, South Korea. selected CATIA V5 Solutions for the digital design of its high quality automotive surfaces, underscoring CATIA's position as the core system for critical-path process body and trim engineering for Hyundai. By standardizing on CATIA within the body engineering process, Hyundai eliminates the need to convert data, which is expensive and time consuming. Saab Automobile SAAB Automobile AB is automobile manufacturing company in Sweden, and is currently a wholly-owned subsidiary of the General Motors Corporation. SAAB is the exclusive automobile Royal Warrant Holder appointed by H.M. the King of Sweden. AB chose DELMIA's ERGOFab for operation management and line balancing to improve the efficiency in the new car design process and change management in production. Since September 1999, Saab Automobile has been using ERGOPlan and the module ERGOMas for Process Design in the Assembly Shop. SANYO MACHINE WORKS (SMW SMW Swiss Military Watch SMW Streaming Media World SMW Super Mario World (game) SMW Special Marine Warning SMW Sheet Metal Workers SMW Swiss Medical Weekly SMW Super Mario War (gaming) ) chose DELMIA solutions to shorten its design validation time and improve its system quality, replacing its in-house developed 2D and 3D simulation software Simulation software is based on the process of imitating a real phenomenon with a set of mathematical formulas. It is, essentially, a program that allows the user to observe an operation through simulation without actually running the program. . The implementation provides SMW with best of breed tools to check for the collisions of robots and welding welding, process for joining separate pieces of metal in a continuous metallic bond. Cold-pressure welding is accomplished by the application of high pressure at room temperature; forge welding (forging) is done by means of hammering, with the addition of heat. guns, validate tact time and simulate simulate - simulation an entire line system before building the actual production line systems. The solutions enable SMW to present attractive system proposals to clients from the beginning of the concept design stage. This decision resulted in tremendous efficiencies in terms of manpower, costs and overall productivity. Karmann selected ENOVIA's digital enterprise solutions for managing its product development processes to reduce product development time while improving product quality in real time. The solutions also allow users to visualize, navigate, review and simulate digital mock-ups quickly, saving time and increasing responsiveness to customers. Amada Ltd., Japan's largest metal-processing machinery supplier, chose SolidWorks' 3D CAD solutions to design its entire product line and will be installed in its operations throughout Japan, Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Amada expects the software to reduce production costs by 35% and cut design time in half. Amada selected SolidWorks for its powerful 3D modeling capabilities, extensive partner program and affordable price. It also purchased several SolidWorks partner applications for finite element analysis Finite element analysis (FEA) is a computer simulation technique used in engineering analysis. It uses a numerical technique called the finite element method (FEM). There are many finite element software packages, both free and proprietary. , fluid analysis, piping design and product data management. RECOGNITION/AWARDS SolidWorks received two top industry awards at the 2001 National Design Engineering Show for its online collaborative design. CADENCE Magazine Cadence Magazine is a monthly review of jazz, blues and improvised music published in Redwood, New York by critic/historian Bob Rusch. The magazine covers a range of styles, from early jazz and blues to the avant-garde. The magazine's parent company, Cadnor, Ltd. presented SolidWorks' collaborative tool set with its Show Stopper Show stopper A legal barrier, such as a scorched-earth policy or shark repellant system, that firms use to prevent a takeover. show stopper A legal barrier to a takeover attempt that is virtually impossible for the suitor to overcome. Award, and CADALYST Magazine bestowed its Best of Show Award on SolidWorks' eDrawings product. CADENCE cadence, in music, the ending of a phrase or composition. In singing the voice may be raised or lowered, or the singer may execute elaborate variations within the key. cited SolidWorks' collaborative tool set as products that "exemplify ex·em·pli·fy tr.v. ex·em·pli·fied, ex·em·pli·fy·ing, ex·em·pli·fies 1. a. To illustrate by example: exemplify an argument. b. innovation, creativity, simplicity, and ease-of-use" and "move the CAD industry forward." CADALYST's Best of Show Award recognized SolidWorks' eDrawings as a product "destined des·tine tr.v. des·tined, des·tin·ing, des·tines 1. To determine beforehand; preordain: a foolish scheme destined to fail; a film destined to become a classic. 2. to change the way designers and engineers work." Smart Solutions was also awarded CADENCE's Show Stopper Award, citing Smart Solutions SmartBOM product, the SmartBriefcase family and strong performance of Smart Solutions as a powerful play in the manufacturing market space. Statements above that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Company's objective for 2001 revenue and EPS, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (within the meaning of Section 27A of the Securities Act of 1933, as amended). Such forward-looking statements are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to, among other factors: (i) currency fluctuations (ii) global economic conditions, (iii) market demand for our products and services, (iv) new product developments and technological changes, and (v), our ability to recruit and retain skilled personnel. Unfavorable changes in any of the above or other factors described 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's financial position or results of operations. ABOUT DASSAULT SYSTEMES DS is the premier global software developer of Product Lifecycle Management (PLM) Solutions, providing companies with e-business solutions to implement their digital enterprise, thus creating and simulating the entire product lifecycle from initial concept to product in service. CATIA, ENOVIA and DELMIA solutions support industry-specific business processes to help unleash creativity and innovation, reduce development cycle time, improve quality, competitiveness and shareholder value. CATIA supports the digital product definition and simulation; DELMIA provides solutions to define and simulate lean digital manufacturing processes and ENOVIA delivers enterprise solutions that manage a comprehensive, collaborative and distributed model of the digital product, processes and resources. The combined integration creates the Digital Product lifecycle Pipeline, supporting reuse reuse - Using code developed for one application program in another application. Traditionally achieved using program libraries. Object-oriented programming offers reusability of code via its techniques of inheritance and genericity. of corporate knowledge. SolidWorks and Smart Solutions, as DS companies, offer respectively 3D design-centric and TeamPDM software solutions based on Windows. Information on DS, including additional tables in Euros, is available on the Internet at: http://www.dsweb.com.
DASSAULT SYSTEMES
CONSOLIDATED STATEMENTS OF INCOME DATA
(in millions of Euro, except per share data)
Three Months Three Months
Ended Ended
March 31, March 31,
2001 2000
------------- ------------
Revenue:
Software revenue E 144.7 E 117.7
Service and other revenue 20.4 17.0
--------- ---------
Total revenue 165.1 134.7
Cost of revenue:
Software revenue 5.3 3.5
Service and other 16.8 14.0
--------- ---------
Total cost of revenue 22.1 17.5
Gross profit 143.0 117.2
Research, selling, administrative and
acquisition expenses: ----------------
Research and development 48.9 38.5
Marketing and sales 39.3 26.1
General administration 10.2 8.2
Acquisition costs 12.7 7.8
--------- ---------
Total research, selling, admini-
strative and acquisition expenses 111.1 80.6
Operating income 31.9 36.6
Financial revenue and other 5.0 4.0
--------- ---------
Income before income taxes 36.9 40.6
Income tax expense -18.0 -17.7
--------- ---------
Net income E 18.9 E 22.9
========= =========
Basic net income per share (1): E 0.17 E 0.20
========= =========
Diluted net income per share(1): E 0.16 E 0.19
========= =========
Basic weighted average shares
outstanding (in millions) 113.3 112.7
--------- ---------
Diluted weighted average shares
outstanding (in millions) 117.5 118.5
--------- ---------
(1) Excluding acquisition costs, operating income and net income would
have been as follows:
Operating income 44.6 44.4
Net income 29.9 29.5
Diluted net income per share 0.25 0.25
DASSAULT SYSTEMES
CONSOLIDATED STATEMENTS OF INCOME DATA
PERCENTAGE VARIANCE
(EXCLUDING ACQUISITION COSTS)
(in millions of Euro, except per share data)
Excluding acquisition costs, the consolidated statements of income
data would have been as follows:
Three Months Three Months Percentage
Ended Ended Variance
March 31, March 31, %
2001 2000
------------ ------------ ----------
Revenue:
Software revenue E 144.7 E 117.7 22.9%
Service and other revenue 20.4 17.0 20.0%
-------- -------- -----
Total revenue 165.1 134.7 22.6%
Cost of revenue:
Software revenue 5.3 3.5 51.4%
Service and other 16.8 14.0 20.0%
-------- -------- -----
Total cost of revenue 22.1 17.5 26.3%
Gross profit 143.0 117.2 22.0%
Research, selling and
administrative:
Research and development 48.9 38.5 27.0%
Marketing and sales 39.3 26.1 50.6%
General administration 10.2 8.2 24.4%
-------- -------- -----
Total research, selling and
administrative 98.4 72.8 35.2%
Operating income 44.6 44.4 0.5%
Financial revenue and other 5.0 4.0 25.0%
-------- -------- -----
Income before income taxes 49.6 48.4 2.5%
Income tax expense -19.7 -18.9 N/S
-------- -------- -----
Net income E 29.9 E 29.5 1.4%
======== ======== =====
Diluted Net income per share E 0.25 E 0.25 0.0%
======== ======== =====
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions of Euro)
March 31, December 31,
2001 2000
---------- -----------
ASSETS
Cash and short-term investments E 359.7 E 274.2
Accounts receivable, net 144.5 210.1
Other assets 256.2 249.3
-------- --------
Total assets 760.4 733.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities 266.5 267.9
Shareholders' equity 493.9 465.7
-------- --------
Total liabilities and shareholders' equity E 760.4 E 733.6
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