Dassault Systemes Achieves Key 2003 Objectives, with Solid Market Share Gains and Operating Margin Growth.Business Editors/High-Tech Writers PARIS--(BUSINESS WIRE)--Feb. 5, 2004 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. (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) -- Results in line for fourth quarter with revenue of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 227.8 million, operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 39.4% and U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 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 EUR 0.50; Before acquisition costs operating margin 39.9% and EPS EUR 0.51. -- Total revenue increased 8% for fourth quarter and 5% for 2003 in constant currencies, with software revenue up 8% in fourth quarter and 4% for 2003 in constant currencies. -- DS 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 market leadership increased an estimated 2 percentage points to 23% for 2003. -- Operating Margin increased over 1 percentage point in 2003 to 29.0% before acquisition costs; U.S. GAAP operating margin 28.2% in 2003. -- Maintaining FY04 revenue growth objective of 6-7% in constant currencies. Dassault Systemes (DS) (Nasdaq:DASTY); (Euronext Paris: #13065, DSY 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) solutions, reported financial results for the fourth quarter and year ended December December: see month. 31, 2003. FINANCIAL HIGHLIGHTS Fourth Quarter Total revenue increased 2% to EUR 227.8 million as reported and increased 8% in constant currencies in the fourth quarter of 2003. Both software and services posted year over year growth. As reported EPS increased 11% to EUR 0.50 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 2003 fourth quarter compared to EUR 0.45 per diluted share in the fourth quarter of 2002. EPS excluding acquisition costs also increased 11% to EUR 0.51 per diluted share in the 2003 fourth quarter, compared to EUR 0.46 per diluted share in the year-ago period. Software revenue increased 1% as reported and 8% in constant currencies in comparison to the year-ago fourth quarter. Software revenue, representing 86% of total revenue, totaled EUR 196.5 million in the 2003 fourth quarter, compared to EUR 194.4 million in the prior year period. 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 represented 43% of total software revenue in the fourth quarter of 2003. Service and other revenue, accounting for 14% of total revenue, was EUR 31.3 million in the 2003 fourth quarter, compared to EUR 30.0 million in the 2002 fourth quarter. On an as reported basis, service and other revenue increased 4% year over year and increased 11% in constant currencies. Seat licensing activity in the fourth quarter of 2003 was good, reflecting seat growth for both 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 SolidWorks SolidWorks is a 3D mechanical CAD (computer-aided design) program that runs on Microsoft Windows and was developed by SolidWorks Corporation - now a subsidiary of Dassault Systèmes, S. A. (Suresnes, France). . CATIA and SolidWorks seats licensed in the 2003 fourth quarter increased 8% year over year to 17,561 new seats. Specifically, 10,493 CATIA seats were licensed, representing an increase of 3% in comparison to the fourth quarter of 2002. SolidWorks had very strong seat growth in the fourth quarter, increasing 17% year over year to a record 7,068 new seats licensed. As reported, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 10% to EUR 89.8 million in the 2003 fourth quarter (39.4% operating margin), compared to EUR 81.4 million in the fourth quarter of 2002 (36.3% operating margin). Operating income before acquisition costs increased 9% to EUR 90.8 million in the 2003 fourth quarter, up from EUR 83.5 million in the year-ago period. The operating margin before acquisition costs was 39.9% in the fourth quarter of 2003, representing an improvement of almost three percentage points compared to the year-ago period where the operating margin was 37.2% before acquisition costs, reflecting the Company's strong focus on managing expense growth. Process-centric revenue, including 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 revenue, totaled EUR 194.1 million in the fourth quarter, level with the year-ago period and up 5% in constant currencies. PDM revenue increased 15% to EUR 35.6 million in the 2003 fourth quarter and increased 21% in constant currencies compared to the fourth quarter of 2002. PDM end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. software revenue totaled US $67.0 million in the fourth quarter of 2003. Design-centric revenue totaled EUR 33.7 million in the fourth quarter, up 10% compared to the 2002 fourth quarter. Design-centric revenue increased 31% if reported in U.S. dollars, the reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. of most of its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . PDM revenue represented 16% and design-centric revenue accounted for 15% of total revenue in the 2003 fourth quarter. The Company continued to maintain a strong financial position with cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaling EUR 439.7 million and no bank debt at December 31, 2003. Full Year Total revenue was EUR 754.8 million in 2003, compared to EUR 774.1 million in 2002, representing a decrease of 2% as reported, but an increase of 5% in constant currencies. As reported, EPS increased 8% to EUR 1.18 per diluted share in 2003, compared to EUR 1.09 per diluted share in 2002. EPS excluding acquisition costs increased 4% to EUR 1.22 per diluted share for 2003, compared to EUR 1.17 per diluted share in 2002. As reported, operating income increased 5% to EUR 212.7 million (28.2% operating margin) in 2003, compared to EUR 203.0 million (26.2% operating margin) in 2002. Operating income before acquisition costs increased 2% to EUR 218.6 million in 2003, up from EUR 214.1 million in 2002. The operating margin before acquisition costs increased 1.30 percentage points to 29.0% in 2003, up from 27.7% before acquisition costs in 2002. The Company increased R&D resources, with the worldwide R&D employee base rising 6% in 2003. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by 3.4% in 2003 (at constant currency), tracking closely total company average headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. growth of 3.5%. Software revenue totaled EUR 645.6 million in 2003, compared to EUR 669.9 million in 2002, representing a decrease of 4% as reported, but an increase of 4% in constant currencies. Recurring software revenue continued to be an important component of total software revenue, representing 51% of total software revenue in 2003. For the full year 57,524 seats were licensed, comprised of 32,163 CATIA and 25,361 SolidWorks seats. Service revenue totaled EUR 109.2 million in 2003, compared to EUR 104.2 million in 2002, representing an increase of 5% as reported, and an increase of 13% in constant currencies. For the full year Process-centric revenue totaled EUR 629.1 million, and in comparison to 2002 was 3% lower, but up 2% in constant currencies. PDM revenue for 2003 totaled EUR 94.6 million, an increase of 14% as reported and an increase of 21% in constant currencies in comparison to 2002. Design-centric revenue totaled EUR 125.7 million in 2003, slightly lower than revenue of EUR 126.2 million in 2002. However, design-centric revenue increased 19% in U.S. dollars compared to 2002. For the full year, PDM revenue represented 13% and design-centric revenue represented 17% of total revenue. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by Edelstenne, Chairman, commented, "In a few short years, Dassault Systemes has evolved from providing CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. products to delivering true Product Lifecycle Management solutions. Moreover, the Company has successfully managed this evolution while also delivering comparatively strong financial performance and high profitability within a weak business climate." Bernard Charles Bernard Charles is the CEO of Dassault Systemes. References
above all, most especially , we have extended our leadership in PLM, as substantiated with a 2 points market share increase as well as our revenue growth for the full year of 17% if reported in U.S. dollars. We continue to create more value for our customers and partners. We believe 2004 will be another year of market share growth and solid performance for Dassault Systemes. "PLM is truly becoming a reality as it is a catalyst catalyst, substance that can cause a change in the rate of a chemical reaction without itself being consumed in the reaction; the changing of the reaction rate by use of a catalyst is called catalysis. for significant business transformations. A year after their V5 PLM decision, Toyota Toyota (toi-ō`tə, Jap. tōyō`tä), city (1990 pop. 332,336), Aichi prefecture, central Honshu, Japan. It is a major industrial center dominated by the Toyota Motor Company, which produces passenger vehicles and auto parts there. launched the new SIENTA model in the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and market, thus illustrating the remarkable speed of adoption of V5 PLM as SIENTA is the first car on the market developed with Dassault Systemes V5 technology. Furthermore, our V5 PLM Express solutions are creating significant business momentum with small and medium size companies that we expect to expand in 2004. "Our PDM business made very good progress during the year, adding over 1,000 new customers, with its total customer base approaching 5,600 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . ENOVIA and SMARTEAM make a powerful combination with our PDM software revenue, if reported in U.S. dollars, growing faster than any of our major competitors in 2003. SolidWorks, the world leader in the design-centric market, finished the year with the strongest quarterly performance in its history -- delivering record high revenue, seat growth and earnings." Thibault de Tersant, Executive Vice President and CFO See Chief Financial Officer. , commented, "We continued the positive momentum of the third quarter into the fourth quarter with software revenue showing year over year growth for the second quarter in a row. Excluding currency effects, software revenue increased 8% for the fourth quarter. Seat licensing activity was also positive for both CATIA and SolidWorks. "From a geographic perspective, Asia was the strongest region for growth and, in fact, fourth quarter revenue results for the Asia region were among the best in our history. The Americas A·mer·i·cas , the See America. are clearly showing some indications of improvement. For the full year, both Asia and the Americas had double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth, growing 14% and 15% respectively, excluding the impact of currencies. As anticipated, activity levels in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). remained muted mut·ed adj. 1. a. Muffled; indistinct: a muted voice. b. Mute or subdued; softened: muted colors. 2. . "We were particularly pleased to achieve the 130 basis points increase in our operating margin in 2003. Our goal was to improve the efficiency of our operations. This approach has enabled us to increase our overall average staffing in 2003 by 140 people or 3.5%, while also improving our operating margin by a significant amount. "The significant currency movements in 2003 masked A state of being disabled or cut off. the true underlying improvement in our level of activity as we absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. a 7 point reduction in our revenue growth rate as well as a EUR 0.13 reduction in earnings per share before acquisitions costs. As a result, we reported a growth rate for EPS before acquisition costs of 4% for the year rather than 15%." Business Outlook "As we indicated in the third quarter, our revenue growth objective for 2004 is about 6% to 7% in constant currencies and it remains so today," Thibault de Tersant stated. "Since that time, however, the U.S. dollar has continued to weaken against the Euro. For purposes of calculating reported revenue we are assuming a U.S. dollar to Euro exchange rate of $1.30 per EUR 1.00, leading to a reported revenue objective of about EUR 765 million and EPS before acquisition costs of about EUR 1.25 - EUR 1.27 for 2004. This earnings objective assumes an approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. EUR 0.07 negative impact from currency fluctuations, without which our EPS before acquisition costs growth objective would have been about 10%. Our objective for 2004 is to maintain a stable operating margin before acquisition costs in comparison to 2003. Our revenue objective for the first quarter is about EUR 165 - EUR 170 million, based upon a U.S. dollar to Euro exchange rate of $1.30 per EUR 1.00." Endnotes: (1) All comparative figures are given on a year over year basis unless specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. otherwise. (2) All financial information is unaudited and reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (U.S. GAAP). Additional financial information is also presented that is not in conformity with U.S. GAAP, in particular the presentation of operating income, operating margin and earnings per share before acquisition costs (acquisition costs are primarily comprised of technology amortization in addition to other acquisition- related costs). The Company has provided in the tables to this press release and on its Web site http://www.3ds.com/en/investors/presentation.asp reconciliations between U.S. GAAP and non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. GAAP figures. (3) The Company provides revenue results in U.S. dollars as market share is determined by comparing the revenue performance of market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. as if all participants reported in U.S. dollars. For 2002 the exchange rate used was $0.94 per EUR 1.00 and for 2003 the exchange rate used was $1.13 per EUR 1.00. (4) The Company uses constant currency revenue growth to evaluate its financial performance in comparison to prior periods and as a measure of expected growth in planning and setting objectives for future periods. The Company believes this measure is an important indicator of the Company's progress and outlook because it provides a better gauge gauge In manufacturing and engineering, a device used to determine whether a dimension is larger or smaller than a reference standard. A snap gauge, for example, is formed like the letter C, with outer “go” and inner “not go” jaws, and is used to of the level of change in the business activity as it eliminates any changes arising from currency fluctuations. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view revenue growth in a manner similar to the method used by the Company's management, helps improve investors' ability to understand the Company's revenue growth, and makes it easier to compare DS' results with other companies, including competitors, whose reporting currency may be different from DS. Constant currency revenue growth, as calculated by the Company, may not be comparable to similarly titled measures employed by other companies. RECENT BUSINESS HIGHLIGHTS CUSTOMERS AND PARTNERS HIGHLIGHTS DS and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) jointly introduced a PLM Industry Solution for the Electrical and Electronics (E&E) industry, the first in a series of E&E industry-specific PLM solutions intended to speed mechanical product development while strengthening innovation. -- The Integrated Mechanical Product Development for Electronics (IMPD IMPD Indianapolis Metropolitan Police Department (Indianapolis, Indiana) IMPD Investigational Medicinal Product Dossier IMPD Inosine Monophosphate Dehydrogenase IMPD Institute for Multi-Party Democracy ) solution consists of a set of integrated products from CATIA and SMARTEAM combined with a set of DS PLM Practices developed for the E&E industry. -- The solution links the applications and disciplines involved in mechanical product development and enables manufacturers to 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. valuable corporate intellectual property. -- Specifically, IMPD streamlines mechanical product development operations by increasing the amount of semantic See semantics. See also Symantec. data exchanged between applications and development disciplines such as style, design, manufacturing, and analysis. It allows them to explore more design possibilities in less time, capture and reuse existing features or assemblies made context sensitive, keep automatic links between part and mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. design, create designs in accordance with corporate standards through automatic guidance, and take into account quickly and seamlessly the results of digital simulation The mathematical representation of the interaction of real-world objects. See scientific application and simulator. Simulation A broad collection of methods used to study and analyze the behavior and performance of actual or theoretical systems. and analysis. DS and IBM have introduced a PLM Industry Solution for the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . The Generative gen·er·a·tive adj. 1. Having the ability to originate, produce, or procreate. 2. Of or relating to the production of offspring. generative pertaining to reproduction. Car solution is a comprehensive offering that applies to all facets of automotive development processes, including Body, Interior and Exterior trim, Chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. , Powertrain, Electrical, and Vehicle Synthesis A combination, derivation or compilation. See logic synthesis. (programming, specification) synthesis - The process of deriving (efficient) programs from (clear) specifications. See also program transformation. and Assembly. -- The Generative Car solution consists of a set of integrated products from CATIA, ENOVIA, and DELMIA DELMIA Digital Enterprise Lean Manufacturing Interactive Application , combined with a set of IBM Best Practices and DS PLM Practices developed for the automotive industry. -- It enables automotive manufacturers and suppliers to leverage valuable corporate knowledge in order to meet market demands for an ever-increasing number of vehicle models. -- It permits simultaneous engineering, fast design change, and seamless See seamless integration. processes from early styling to manufacturing definition. AMC (Advanced Mezzanine Card) See AdvancedTCA. Centurion AB (formerly Allgon Mobile Communications) has implemented SMARTEAM to achieve multi-CAD data management, improve search retrieval retrieval /re·triev·al/ (-tre´v'l) in psychology, the process of obtaining memory information from wherever it has been stored. re·triev·al n. , and establish Web-based collaboration Working together on a project. See collaborative software. with suppliers. Based in Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. , AMC Centurion is the world's leading supplier of mobile phone antennas and serves the world's leading cell phone manufacturers. DS is partnering with The Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. Company to enhance its entire suite of V5 PLM solutions to provide the unique, pioneering digital processes and tools required for the 7E7 global development environment. China Textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. Machinery Industry, China's largest manufacturer of textile weaving weaving, the art of forming a fabric by interlacing at right angles two or more sets of yarn or other material. It is one of the most ancient fundamental arts, as indicated by archaeological evidence. machinery, has purchased 40 additional licenses of SolidWorks 3D mechanical design software to meet increasing demand from international markets. A total of 130 SolidWorks licenses are installed at its nine divisions throughout China. EMAK, a worldwide supplier of outdoor power equipment for lawn and garden maintenance, has signed a contract for Product Lifecycle Management solutions and services. With CATIA V5, as its virtual product development platform, and SMARTEAM for collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. product data management, EMAK will be able to improve its product development processes and its ability to use product-related information to make better business decisions and deliver greater value to customers. Hanil E Hwa Co., Ltd., a leading Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known automotive supplier, is expanding its product lifecycle management platform with SMARTEAM product data management solutions to manage and standardize stan·dard·ize v. 1. To cause to conform to a standard. 2. To evaluate by comparing with a standard. product data across its business divisions in Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. and subsidiaries in China, India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and Turkey. The company previously purchased CATIA V5. With the addition of SMARTEAM, for collaborative product data management, Hanil E Hwa will be able to manage and share product design data across the company and in real time to boost collaboration and shorten (audio, compression) Shorten - A form of lossless audio compression. the product development cycle. Kinpo Electronics Inc., the world's leading manufacturer of calculators, has implemented CATIA V5 to help the company significantly shorten its product design time. The collaborative product development Collaborative Product Development (Collaborative Product Design) (CPD) is a business strategy, work process and collection of software applications that facilitates different organizations to work together on the development of a product. application has enabled Kinpo to launch new calculator calculator or calculating machine, device for performing numerical computations; it may be mechanical, electromechanical, or electronic. The electronic computer is also a calculator but performs other functions as well. , digital voice recorder A digital, handheld device that is used to record short reminders. Very lightweight and typically using AAA batteries, such devices use flash memory to hold up to 100 messages and more. Messages can be retrieved sequentially or by direct access by message number. See microcassette. , digital still camera, global positioning systems Global Positioning System: see navigation satellite. Global Positioning System (GPS) Precise satellite-based navigation and location system originally developed for U.S. military use. and cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. products on the market within a very short product lifecycle time. Liebherr Group's Aerospace division, a key global aerospace supplier, will implement SMARTEAM for collaborative product data and lifecycle management to support Liebherr Aerospace's objective to accelerate time-to-market, increase return on investment, product quality, and ultimately, company growth. Liebherr Aerospace provides the world's major aircraft manufacturers with aircraft control, hydraulic, landing gear, air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and ventilation systems ventilation system Public health An air system designed to maintain negative pressure and exhaust air properly, to minimize the spread of TB and other respiratory pathogens in a health care facility . Loewen Inc., a Manitoba-based leading manufacturer of luxury Douglas fir Douglas fir: see pine. Douglas fir Any of about six species of coniferous evergreen timber trees (see conifer) that make up the genus Pseudotsuga, in the pine family, native to western North America and eastern Asia. windows and doors, has chosen CATIA V5 and SMARTEAM solutions to enable Loewen to reduce design cycle times, increase productivity, and improve departmental linkages by providing a consistent information repository An information repository is an easy to deploy secondary tier of data storage that can comprise multiple, networked data storage technologies running on diverse operating systems, where data that no longer needs to be in primary storage is protected, classified according to captured for product knowledge and design constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. . As a manufacturer of highly configurable products, Loewen must develop systems and processes that give customers the greatest opportunity for customization yet ensure product manufacturability. Siddhartha Siddhartha: see Buddha. Siddhartha character who wanders in search of “inner truth.” [Ger. Lit.: Hesse, Siddhartha] See : Wandering Sailing sailing, as a sport, the art of navigating a sailboat for recreational or competitive purposes. Racing Classes There is no single "yacht type" of boat, rather many types that include sloops, yawls, catamarans, and ketches. Yachts, Austria's renowned luxury boat designer, has chosen CATIA V5 Solutions, with industry-specific shipbuilding functions, to advance concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. shipbuilding processes. Toyota Motorsport GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) , a subsidiary of Toyota Motor Corporation of Japan, will use DS' Generative Car Design Industry solution to develop Formula 1 car designs for the 2004 season. The Generative Car Design solution is a Product Lifecycle Management Version 5 solution created specifically for the automotive industry. It enables automotive manufacturers and suppliers to reuse their existing design knowledge to speed development of new components and vehicles, and reduce costs. Conference call information: The Company will host a teleconference call today, Thursday Thursday: see week. , February February: see month. 5, 2004 at 4:00 p.m. CET/3:00 p.m. London/10:00 a.m. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The conference call will be available via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by accessing http://www.3ds.com/en/investors/index.asp . Please go to the Web site at least 15 minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. The webcast teleconference will be archived for 30 days. Financial information to be discussed in the call will be available on the Company's Web site prior to commencement of the teleconference http://www.3ds.com/en/investors/earnings.asp . Additional investor information can be accessed at http://www.3ds.com/en/investors/index.asp or by calling Dassault Systemes' Investor Relations Investor relations The process by which the corporation communicates with its investors. at 33.1.40.99.69.24. 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 objectives for 2004 first quarter revenue, 2004 revenue growth in constant currencies, 2004 reported revenue growth, 2004 operating margin growth objective and 2004 EPS objective before acquisitions costs 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 21E of the 1934 Securities Exchange Act, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. ). 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, 2002, which was filed with the SEC on May 15, 2003, could materially affect the Company's financial position or results of operations. ABOUT DASSAULT SYSTEMES As world leader in PLM (Product Lifecycle Management) solutions, the Dassault Systemes group brings value to more than 70,000 customers in 80 countries. A pioneer in the 3D software market since 1981, Dassault Systemes develops and markets PLM application software and services that support industrial processes and provide a 3D vision of the entire life cycle of products from conception conception /con·cep·tion/ (kon-sep´shun) 1. an imprecise term denoting the formation of a viable zygote.concep´tive 2. concept. con·cep·tion n. 1. to maintenance. Its offering includes integrated PLM solutions for product development (CATIA(R), DELMIA(TM), ENOVIA(R), SMARTEAM(R)), mainstream product design tools (SolidWorks(R)), and 3D components (ACIS(R)) from Spatial Corp Spatial Corporation was founded in 1986, and had one main product: ACIS, the first commercially available 3D modeling kernel. Through subsequent years, Spatial added products to its portfolio that enabled ISVs mostly in the CAD/CAM industries, to build applications. . Dassault Systemes is listed on the Nasdaq (DASTY) and Euronext Paris (#13065, DSY.PA) stock exchanges. For more information, visit http://www.3ds.com .
DASSAULT SYSTEMES
NON-U.S. GAAP KEY FIGURES
(in millions of Euro, except per share data)
4TH QUARTER
-----------
Percentage
4Q03 4Q02 Variance
------------------------------
Process-Centric excluding PDM 158.5 162.8 (3)%
PDM 35.6 30.9 15%
Design-Centric 33.7 30.7 10%
Revenue 227.8 224.4 2%
Americas 62.8 63.4 (1%)
Europe 114.9 123.2 (7%)
Asia 50.1 37.8 32%
Operating Income (1) 90.8 83.5 9%
Operating Margin (1) 39.9% 37.2%
Net Income (1) 58.7 53.2 10%
EPS (1) 0.51 0.46 11%
Closing Headcount 4,088 3,966 3%
Average Rate USD per Euros 1.19 1.00 19%
Average Rate JPY per Euros 130 123 6%
(1) Excluding acquisition costs, for US GAAP figures, please refer
to reconciliation tables.
FULL YEAR
---------
Percentage
4Q03 4Q02 Variance
------------------------------
Process-Centric excluding PDM 534.5 565.2 (5%)
PDM 94.6 82.7 14%
Design-Centric 125.7 126.2 0%
Revenue 754.8 774.1 (2%)
Americas 215.3 224.0 (4%)
Europe 353.9 374.8 (6%)
Asia 185.6 175.3 6%
Operating Income (1) 218.6 214.1 2%
Operating Margin (1) 29.0% 27.7%
Net Income (1) 140.4 136.0 3%
EPS (1) 1.22 1.17 4%
Average Rate USD per Euros 1.13 0.94 20%
Average Rate JPY per Euros 131 118 11%
(1) Excluding acquisition costs, for US GAAP figures, please refer
to reconciliation tables.
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA PREPARED IN ACCORDANCE
WITH U.S. GAAP
(in millions of Euro, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
----------- ------------ ------------ -----------
Software 196.5 194.4 645.6 669.9
Service and Other 31.3 30.0 109.2 104.2
----------- ------------ ------------ -----------
Total Revenue EUR 227.8 EUR 224.4 EUR 754.8 EUR 774.1
Software 5.2 6.4 21.7 24.4
Service and Other 23.8 28.2 89.7 96.4
----------- ------------ ------------ -----------
Total Cost of
Revenue EUR 29.0 EUR 34.6 EUR 111.4 EUR 120.8
Gross Profit EUR 198.8 EUR 189.8 EUR 643.4 EUR 653.3
Research and
Development 55.8 54.6 215.6 221.6
Marketing and Sales 41.3 41.0 162.4 169.7
General
Administration 10.9 10.7 46.8 47.9
Acquisition Costs 1.0 2.1 5.9 11.1
----------- ------------ ------------ -----------
Total Research,
Selling,
Administration and
Acquisition expenses EUR 109.0 EUR 108.4 EUR 430.7 EUR 450.3
=========== ============ ============ ===========
Operating Income
(1) EUR 89.8 EUR 81.4 EUR 212.7 EUR 203.0
Financial revenue and
Other (3.0) (1.8) (0.4) 2.8
Income before income
taxes 86.8 79.6 212.3 205.8
Income tax expense (29.0) (28.2) (76.9) (79.4)
----------- ------------ ------------ -----------
Net Income (1) EUR 57.8 EUR 51.4 EUR 135.4 EUR 126.4
=========== ============ ============ ===========
Basic net income per
share EUR 0.51 EUR 0.45 EUR 1.20 EUR 1.11
=========== ============ ============ ===========
Diluted net income
per share (1) EUR 0.50 EUR 0.45 EUR 1.18 EUR 1.09
=========== ============ ============ ===========
Basic weighted
average shares
outstanding (in
millions) 113.0 114.2 113.0 114.1
=========== ============ ============ ===========
Diluted weighted
average shares
outstanding (in
millions) 116.0 114.7 114.7 116.2
(1) Excluding acquisition costs, operating income and net income
would have been as follows:
Operating Income EUR 90.8 EUR 83.5 EUR 218.6 EUR 214.1
=========== ============ ============ ===========
Net Income EUR 58.7 EUR 53.2 EUR 140.4 EUR 136.0
=========== ============ ============ ===========
Diluted net income
per share EUR 0.51 EUR 0.46 EUR 1.22 EUR 1.17
=========== ============ ============ ===========
Supplemental Disclosures Regarding Non-U.S. GAAP Financial Information: Excluding Acquisition Costs The following tables set forth the Company's Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Income Data excluding acquisition costs for the three months and year ended December 31, 2003. In particular, the tables present operating income, operating margin and earnings per share before acquisition costs (acquisition costs are primarily comprised of technology amortization in addition to other acquisition-related costs). The Company uses these non-GAAP measures, among other things, to evaluate the Company's operating performance and for planning and setting objectives for future periods. The Company believes these non-GAAP measures are useful to investors because they provide an alternative method for measuring the operating performance of the Company's business by isolating i·so·late tr.v. i·so·lat·ed, i·so·lat·ing, i·so·lates 1. To set apart or cut off from others. 2. To place in quarantine. 3. the effect of acquisition costs, which do not impact the underlying business. In addition, these measures are among the primary measures used externally by analysts for purposes of valuation and comparing operating performance of the Company to other companies in the industry. Since these measures of performance are not calculated in accordance with U.S. GAAP, they should not be considered in isolation of, or as a substitute for, operating income, operating margin and earnings per share including acquisition costs, as an indicator of operating performance.
DASSAULT SYSTEMES
NON-U.S. GAAP CONSOLIDATED STATEMENT OF INCOME DATA
PERCENTAGE VARIANCE
(EXCLUDING ACQUISITION COSTS)
(in millions of Euro, except per share data)
Three Months Ended
December 31, December 31, Variation
2003 2002 %
--------------- --------------- ----------
Software 196.5 194.4 1.1%
Service and Other 31.3 30.0 4.3%
--------------- ---------------
Total Revenue EUR 227.8 EUR 224.4 1.5%
Software 5.2 6.4 (18.8)%
Service and Other 23.8 28.2 (15.6)%
--------------- ---------------
Total Cost of Revenue EUR 29.0 EUR 34.6 (16.2)%
Gross Profit EUR 198.8 EUR 189.8 4.7%
Research and Development 55.8 54.6 2.2%
Marketing and Sales 41.3 41.0 0.7%
General Administration 10.9 10.7 1.9%
--------------- ---------------
Total Research, Selling,
Administration EUR 108.0 EUR 106.3 1.6%
=============== =============== ==========
Operating Income EUR 90.8 EUR 83.5 8.7%
Financial revenue and
Other (3.0) (1.8) N/S
Income before income taxes 87.8 81.7 7.5%
Income tax expense (29.1) (28.5) N/S
Net Income EUR 58.7 EUR 53.2 10.3%
=============== =============== ==========
Diluted net income per
share EUR 0.51 EUR 0.46 10.9%
=============== =============== ==========
Diluted weighted average
shares outstanding (in
millions) 116.0 114.7
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA
RECONCILIATIONS NON-U.S. GAAP / U.S. GAAP
(in millions of Euro, except per share data)
Three Months Ended
December 31, 2003
---------------------------------------
Excluding
Reported Acquisition Acquisition
Amount Costs Costs
---------------------------------------
Software 196.5 196.5
Service and Other 31.3 31.3
------------- -------------
Total Revenue EUR 227.8 EUR 227.8
Software 5.2 5.2
Service and Other 23.8 23.8
------------- -------------
Total Cost of Revenue EUR 29.0 EUR 29.0
Gross Profit EUR 198.8 EUR 198.8
Research and Development 55.8 55.8
Marketing and Sales 41.3 41.3
General Administration 10.9 10.9
Acquisition Costs 1.0 (1.0) -
============= =============
Total Research, Selling,
Administration EUR 109.0 EUR 108.0
============= =============
Operating Income EUR 89.8 EUR 90.8
Financial revenue and Other (3.0) (3.0)
Income before income taxes 86.8 87.8
Income tax expense (29.0) (0.1) (29.1)
Net Income EUR 57.8 EUR 58.7
============= =============
Diluted net income per share EUR 0.50 EUR 0.51
============= =============
Diluted weighted average shares
outstanding (in millions) 116.0 116.0
December 31, 2002
---------------------------------------
Excluding
Reported Acquisition Acquisition
Amount Costs Costs
---------------------------------------
Software 194.4 194.4
Service and Other 30.0 30.0
------------- -------------
Total Revenue EUR 224.4 EUR 224.4
Software 6.4 6.4
Service and Other 28.2 28.2
------------- -------------
Total Cost of Revenue EUR 34.6 EUR 34.6
Gross Profit EUR 189.8 EUR 189.8
Research and Development 54.6 54.6
Marketing and Sales 41.0 41.0
General Administration 10.7 10.7
Acquisition Costs 2.1 (2.1) -
============= =============
Total Research, Selling,
Administration EUR 108.4 EUR 106.3
============= =============
Operating Income EUR 81.4 EUR 83.5
Financial revenue and Other (1.8) (1.8)
Income before income taxes 79.6 81.7
Income tax expense (28.2) (0.3) (28.5)
Net Income EUR 51.4 EUR 53.2
============= =============
Diluted net income per share EUR 0.45 EUR 0.46
============= =============
Diluted weighted average shares
outstanding (in millions) 114.7 114.7
DASSAULT SYSTEMES
NON-U.S. GAAP CONSOLIDATED STATEMENT OF INCOME DATA
PERCENTAGE VARIANCE
(EXCLUDING ACQUISITION COSTS)
(in millions of Euro, except per share data)
Twelve Months Ended
December 31, December 31, Variation
2003 2002 %
--------------- --------------- ----------
Software 645.6 669.9 (3.6)%
Service and Other 109.2 104.2 4.8%
--------------- ---------------
Total Revenue EUR 754.8 EUR 774.1 (2.5)%
Software 21.7 24.4 (11.1)%
Service and Other 89.7 96.4 (7.0)%
--------------- ---------------
Total Cost of Revenue EUR 111.4 EUR 120.8 (7.8)%
Gross Profit EUR 643.4 EUR 653.3 (1.5)%
Research and Development 215.6 221.6 (2.7)%
Marketing and Sales 162.4 169.7 (4.3)%
General Administration 46.8 47.9 (2.3)%
--------------- ---------------
Total Research, Selling,
Administration EUR 424.8 EUR 439.2 (3.3)%
=============== =============== ==========
Operating Income EUR 218.6 EUR 214.1 2.1%
Financial revenue and
Other (0.4) 2.8 N/S
Income before income taxes 218.2 216.9 0.6%
Income tax expense (77.8) (80.9) N/S
Net Income EUR 140.4 EUR 136.0 3.2%
=============== =============== ==========
Diluted net income per
share EUR 1.22 EUR 1.17 4.3%
=============== =============== ==========
Diluted weighted average
shares outstanding (in
millions) 114.7 116.2
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA
RECONCILIATIONS NON-U.S. GAAP / U.S. GAAP
(in millions of Euro, except per share data)
Twelve Months Ended
December 31, 2003
---------------------------------------
Excluding
Reported Acquisition Acquisition
Amount Costs Costs
---------------------------------------
Software 645.6 645.6
Service and Other 109.2 109.2
------------- -------------
Total Revenue EUR 754.8 EUR 754.8
Software 21.7 21.7
Service and Other 89.7 89.7
------------- -------------
Total Cost of Revenue EUR 111.4 EUR 111.4
Gross Profit EUR 643.4 EUR 643.4
Research and Development 215.6 215.6
Marketing and Sales 162.4 162.4
General Administration 46.8 46.8
Acquisition Costs 5.9 (5.9) -
============= =============
Total Research, Selling,
Administration EUR 430.7 EUR 424.8
============= =============
Operating Income EUR 212.7 EUR 218.6
Financial revenue and Other (0.4) (0.4)
Income before income taxes 212.3 218.2
Income tax expense (76.9) (0.9) (77.8)
Net Income EUR 135.4 EUR 140.4
============= =============
Diluted net income per share EUR 1.18 EUR 1.22
============= =============
Diluted weighted average shares
outstanding (in millions) 114.7 114.7
December 31, 2002
---------------------------------------
Excluding
Reported Acquisition Acquisition
Amount Costs Costs
---------------------------------------
Software 669.9 669.9
Service and Other 104.2 104.2
------------- -------------
Total Revenue EUR 774.1 EUR 774.1
Software 24.4 24.4
Service and Other 96.4 96.4
------------- -------------
Total Cost of Revenue EUR 120.8 EUR 120.8
Gross Profit EUR 653.3 EUR 653.3
Research and Development 221.6 221.6
Marketing and Sales 169.7 169.7
General Administration 47.9 47.9
Acquisition Costs 11.1 (11.1) -
============= =============
Total Research, Selling,
Administration EUR 450.3 EUR 439.2
============= =============
Operating Income EUR 203.0 EUR 214.1
Financial revenue and Other 2.8 2.8
Income before income taxes 205.8 216.9
Income tax expense (79.4) (1.5) (80.9)
Net Income EUR 126.4 EUR 136.0
============= =============
Diluted net income per share EUR 1.09 EUR 1.17
============= =============
Diluted weighted average shares
outstanding (in millions) 116.2 116.2
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions of Euro)
December 31, December 31,
2003 2002
---------------- ----------------
ASSETS
Cash and short-term investments 439.7 388.4
Accounts receivable, net 227.6 229.5
Other assets 297.2 302.3
---------------- ----------------
Total assets EUR 964.5 EUR 920.2
LIABILITIES
AND SHAREHOLDERS' EQUITY
Total liabilities 306.8 291.9
Shareholders' equity 657.7 628.3
---------------- ----------------
Total liabilities and shareholders'
equity EUR 964.5 EUR 920.2
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