Dassault Systemes Reports Solid Growth in Software Revenue, Operating Margin and EPS for the Third Quarter.Business Editors PARIS--(BUSINESS WIRE)--Oct. 23, 2003 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.
-- Software revenue up 2% to EUR152.2 million and up 9% in
constant currencies with total revenue up slightly to EUR176.3
million and up 7% in constant currencies for the third quarter
-- Both CATIA and SolidWorks deliver unit seat growth, increasing
6% and 9%, respectively, in the third quarter
-- U.S. GAAP EPS increases 26% to EUR0.24 and EPS before
acquisition costs increases 19% to EUR0.25 in the third
quarter
-- DS reconfirms 2003 operating margin and EPS objectives;
Revenue growth objective adjusted to 5% - 6% in constant
currencies
-- DS initiates preliminary 2004 revenue objective
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, reported financial results for the third quarter and nine months ended September 30, 2003. FINANCIAL HIGHLIGHTS Results for the Third Quarter Ended September 30, 2003 Software revenue results were solid in the third quarter, with software revenue increasing 2% as reported and 9% in constant currencies in comparison to the year-ago period. Software revenue, representing 86% of total revenue, was 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. 152.2 million in the 2003 third quarter, compared to EUR149.5 million in the 2002 third 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 continued to be a significant component of revenue and represented 56% of total software revenue in the third quarter of 2003. Total revenue increased slightly year over year as reported and increased 7% in constant currencies. Total revenue in the third quarter was EUR176.3 million, compared to EUR175.9 million in the year-ago quarter. Services and other revenue, representing 14% of total revenue, decreased 9% to EUR24.1 million in the 2003 third quarter, compared to the prior year period. Seat licensing activity, totaling 13,478 seats in the quarter, also showed good growth, with 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 posting increases over the third quarter of 2002. Specifically, 7,537 CATIA and 5,941 SolidWorks seats were licensed, representing increases of 6% and 9%, respectively, over the year-ago period. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis 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. increased 26% to EUR0.24 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 third quarter compared to EUR0.19 per diluted share in the third quarter of 2002. EPS excluding acquisition costs increased 19% to EUR0.25 per diluted share in the third quarter, compared to EUR0.21 per diluted share in the third quarter of 2002. On a U.S. GAAP basis, 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 17% to EUR42.6 million in the 2003 third quarter, compared to EUR36.3 million in the 2002 third quarter. Operating income before acquisition costs increased 13% to EUR44.0 million, compared to EUR38.8 million in the year-ago quarter. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: before acquisition costs was 25.0% in the 2003 third quarter, approximately three percentage points higher than the year-ago quarter where the operating margin was 22.1% before acquisition costs. 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 EUR146.0 million in the third quarter, slightly higher than the year-ago period, and up 6% in constant currencies. PDM revenue increased 9% to EUR21.4 million and increased 15% in constant currencies compared to the third quarter of 2002. PDM end-user software revenue totaled $29.2 million in the 2003 third quarter. Design-centric revenue totaled EUR30.3 million in the 2003 third quarter, level with the year-ago quarter. Design-centric revenue increased 11% in constant currencies and 14% in U.S. dollars. PDM revenue represented 12% and design-centric revenue accounted for 17% of total revenue in the 2003 third quarter. The Company continued to have 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 EUR429.1 million and no bank debt at September 30, 2003. Results for the Nine Months Ended September 30, 2003 Total revenue was EUR527.0 million for the first nine months of 2003, compared to EUR549.7 million in the year-ago period, representing a decrease of 4% as reported, but an increase of 4% in constant currencies. Software revenue totaled EUR449.1 million in the 2003 nine-month period, representing a decrease of 6%, but an increase of 2% in constant currencies. Year-to-date process-centric revenue totaled EUR435.0 million, 4% lower than the year-ago period, but up 2% in constant currencies. PDM revenue for the first nine months of 2003 was EUR59.0 million, an increase of 14% and 22% in constant currencies in comparison to the year-ago period. Design-centric revenue totaled EUR92.0 million for the 2003 nine-month period, representing a decrease of 4%, but increases of 10% in constant currencies and 16% in U.S. dollars compared to the year-ago period. On a U.S. GAAP basis EPS increased 6% to EUR0.68 per diluted share for the first nine months of 2003, compared to EUR0.64 per diluted share in the year-ago period. EPS excluding acquisition costs totaled EUR0.71 per diluted share for the 2003 nine-month period, level with the year-ago period where EPS was EUR0.71 per diluted share. Year-to-date 39,963 seats have been licensed comprised of 21,670 CATIA and 18,293 SolidWorks seats. Bernard Charles Bernard Charles is the CEO of Dassault Systemes. References
"DS made good progress in the quarter within a continued cautious spending environment on the part of our customers as demonstrated by our revenue increase of 15% when measured in U.S. dollars, outperforming the competition. CATIA V5 continued to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. among existing customers and the supplier network. Moreover, a clear highlight of the quarter is the fact that we are now also seeing the beginning of true PLM wins within the supply chain, including decisions by Bosch and Sanyo Machine Works. Version 5 Release 12 was introduced for CATIA, DELMIA DELMIA Digital Enterprise Lean Manufacturing Interactive Application , ENOVIA and SMARTEAM. At the heart of our new release is Collaborative PLM, enabling companies to move closer to becoming on demand businesses. "New companies continue to join our CAA Caa See CCC. V5 partnership program, resulting in a broad offering of complementary solutions built on top of our V5 open architecture. Our partners number over 36 with the addition of Fluent fluent /flu·ent/ (floo´int) flowing effortlessly; said of speech. and IGE IgE abbr. immunoglobulin E Immunoglobulin E (IgE) A type of protein in blood plasma that acts as an antibody to activate allergic reactions. +XAO XAO Extreme Adaptive Optics this quarter. Today, we also announced a strategic software development agreement with Gehry Technologies to create and sell 3D collaborative solutions to the building industry based upon our CAA V5 development platform." Thibault de Tersant, Executive Vice President and CFO See Chief Financial Officer. , commented, "The third quarter was marked by several highlights. Software revenue growth was in-line with our expectations, increasing 9% in constant currencies. Our continued focus on growing our operating margin through careful cost management met with favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results, with a 3 percentage-point improvement over last year to 25.0% before acquisition costs. And earnings were solid, coming in ahead of our expectations. Services, however, did not meet our expectations, resulting in total revenue approximately EUR4 million lower than our objective when adjusted for actual currency rates. "For the fourth quarter, we believe a revenue objective of about EUR225 million is appropriate as we continue to be cautious about the economic environment. For the full year, we are maintaining our objective for operating margin growth of up to 1 percentage point above the operating margin of 27.7% before acquisition costs achieved in 2002. And, from an earnings perspective, we are also maintaining our EPS objective of EUR1.22 to EUR1.25 per share before acquisition costs. These objectives for revenue and earnings continue to be based upon an assumed U.S. dollar to Euro exchange rate of $1.20 per EUR1.00 for the fourth quarter. We are modifying our revenue growth objective for 2003, reflecting lower service revenue in the second half of the year and our outlook for the fourth quarter. Our 2003 revenue growth objective in constant currencies is now 5% to 6%. "Looking ahead to 2004, we are providing our preliminary views at this time. Our revenue growth objective is about 6% to 7% in constant currencies. Taking an assumed U.S. dollar to Euro exchange rate of $1.20 per EUR1.00, therefore, leads to a reported revenue growth objective of approximately 4 to 5%. At this point in time, our financial objectives assume a continuation of the current business environment into 2004." During the third quarter, the Company's free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. increased to 48% from 32% as a result of the French government's sale of its entire holding in DS. The French government had been a shareholder since May 31, 2001 as a result of DS' de-merger from its former parent company, Dassault Aviation Dassault Aviation is a French aircraft manufacturer of military, regional and business jets, a subsidiary of Dassault Group. It was founded in 1930 by Marcel Bloch as Société des Avions Marcel Bloch or "MB". , in which the Government was an equity holder. Following this sale, the shareholder base of DS is composed as follows: free float of approximately 48.0%, Groupe Industriel Marcel Dassault Marcel Dassault, born Marcel Bloch, (Paris, 22 January 1892 - Neuilly-sur-Seine, 17 April 1986) was a French aircraft industrialist. After graduating from the lycée Condorcet, Breguet School with 45.2%, and Charles Edelstenne, Chairman of Dassault Systemes with 6.8%. Charles Edelstenne, Chairman, commented, "We were pleased by the level of interest in our stock during the French government's sale of its DS shares which was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. more than four times. It reflects the confidence of investors in the strong fundamentals of our business and our strategy." 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, specifically noted as such, is also presented that is not in conformity with U.S. GAAP, with 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) or variances in constant currencies. The Company has provided on its website www.3ds.com reconciliations between U.S. GAAP and non- U.S. GAAP figures. All comparative figures are given on a year over year basis unless specified otherwise. BUSINESS HIGHLIGHTS NEW PRODUCT LAUNCHES DS introduced Version 5 Release 12 -- Collaborative PLM for on demand businesses. V5R12 allows critical PLM components to be merged in collaborative workspaces A collaborative workspace or shared workspace is an inter-connected environment in which all the participants in dispersed locations can access and interact with each other just as inside a single entity. allowing lifecycle management and product design activities to be conducted in parallel while ensuring synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. of collaboration in the context of correct, up-to-date data. New capabilities in ENOVIA Portal 3d com, including enhanced CATIA-ENOVIA integration, allow 3D data, product structure, and other relevant product information to be shared in real-time through web portals See portal. . The new V5R12 product portfolio brings business value to manufacturers in the following areas: -- Core Business - V5R12 enables companies to organize activities around their core business and focus on products. V5R12 redraws the boundaries between traditional product authoring and PDM-related activities, providing users with unified PLM workspaces in which they can process all facets of their activity. -- Content for Collaboration - V5R12 helps companies deliver the right content for collaboration throughout the product lifecycle. This improves exchanges between extended enterprise teams and helps businesses respond rapidly to market change. -- Requirements and Specifications - V5R12 allows companies to better link product design with requirement and specification management in order to dynamically adapt to market demand. -- Manufacturing Resources - V5R12 provides a unified workspace that connects product creation and manufacturing resources definition to help companies make cost-efficient production decisions. During the third quarter, DS introduced a PLM industry solution for aerospace manufacturers based on proven DS PLM Practices. The Best of Breed Structure Engineering solution integrates the activities and processes required to design and manufacture structural aircraft parts and assemblies (sheetmetal, machined, and composite parts) as well as the corresponding tools required to build them. CUSTOMERS AND PARTNERS HIGHLIGHTS The First Aircraft Institute of AVIC-I (FAI), a leading Chinese aircraft Aircraft produced by the People's Republic of China. As a convention, the designations of aircraft usually start from 5 instead of 1. Common Abbreviations Abbreviations Chinese Pinyin English Name H HongZhaJi Bomber J JianJiJi Fighter aircraft research institute, has selected DS PLM solutions to develop China's Advanced Regional Jet Program, ARJ A compression program for backup archiving from ARJ Software, Inc., Norwood, MA (www.arjsoftware.com). Introduced in the early 1990s and created by Robert Jung (the RJ in ARJ), ARJ never achieved the popularity of PKZIP, although it is considered a worthy competitor. See JAR. 21. CATIA V5 for collaborative product design and digital mock-up mock·up also mock-up n. 1. A usually full-sized scale model of a structure, used for demonstration, study, or testing. 2. A layout of printed matter. creation, and ENOVIAVPM for product data and process management, will enable the institute's engineering teams to share data and work in a common 3D development environment across its multi-site operations. Bosch, a major automotive supplier, has invested in DELMIA process planning solutions to meet the requirements outlined for DaimlerChrysler's "Digital Factory" initiative. Bosch celebrated the introduction of its Cooperative Engineering program (COPE), with DELMIA Process Engineer at its core, as a "quantum leap quantum leap n. An abrupt change or step, especially in method, information, or knowledge: "War was going to take a quantum leap; it would never be the same" Garry Wills. in production planning Production planning The function of a manufacturing enterprise responsible for the efficient planning, scheduling, and coordination of all production activities. ". The COPE program offers computer-aided production planning in parallel with product development. Benefits of simulated production planning include the identification and elimination of potential problems in a virtual environment, before they become real and incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. damage and costs. Convenience Food Systems (CFS CFS abbr. chronic fatigue syndrome CFS, n.pr See syndrome, chronic fatigue. CFS Chronic fatigue syndrome, see there ) has standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. on SolidWorks software to design the industrial food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. and packaging machines it sells to global food companies. SolidWorks 3D mechanical design software accelerates large-assembly design for CFS' machines, while COSMOS analysis software reduces production errors so CFS can speed products to customers. Based in the Netherlands, CFS is one of the world's foremost convenience food packaging, preparation, processing, and marination Marination, also known as marinating, is the process of soaking foods in a seasoned, often acidic, liquid before cooking. The origins of the word allude to the use of brine (aqua marina machine makers. Evernham Motorsports LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a leading NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. Winston Cup Series race team, has selected CATIA V5 for 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. and SMARTEAM for collaborative lifecycle management to develop high-performance race cars through virtual testing rather than building costly, full-scale physical prototypes. FE Mottram (Non Ferrous ferrous (fĕr`əs), iron in the +2 valence state. Containing or having to do with iron. The difference between ferrous and ferric is the number of valence electrons they contain (ferrous contains two and ferric contains three), which ) Ltd., a leading alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. metal producer, has streamlined its smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. processes with DELMIA's QUEST software The computer-software manufacturer Quest Software (Quest Software, Inc.) (NASDAQ: QSFT), headquartered in Aliso Viejo, California, dates from 1987. Quest develops, sells, and supports database management, Windows management, and application management software products . QUEST is a 3D simulation tool used to model and analyze facility layout and process flow. FE Mottram has already commissioned Phase II of the project where QUEST will be used to generate "what if" scenarios to reduce internal vehicle movement on site, with the principal goals being a 50 percent reduction in fuel consumption and further increases in worksite safety. Yantai Raffles Shipyard Yantai Raffles Shipyard is an offshore and marine fabrication specialist. It was listed on the Oslo OTC system in Norway in May 2006. In 1994, Brian Chang founded Yantai Raffles which is located in Yantai, Shandong Province, China. , a premier offshore builder of ships and oil rigs, has acquired DS product development and data management software, comprised of CATIA V5 for collaborative virtual product development and ENOVIA LCA LCA Life Cycle Assessment LCA Saint Lucia (ISO Country code) LCA Life Cycle Analysis LCA Linux.conf.au (Australian Linux conference) LCA Labor Condition Application LCA Light Combat Aircraft and ENOVIA Portal 3d com for real-time product data management. Avatech Solutions, Inc., a leading provider of design automation and PLM solutions for the manufacturing, building design and engineering markets, and DS have signed a distribution agreement under which Avatech will significantly expand its marketing, sales and services in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. with integrated SMARTEAM PLM solutions. Gehry Technologies, an independent company created by Gehry Partners' research group, has formed a business partnership with 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) . Gehry Technologies has received accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. as a certified See certification. IBM Business Partner selling and servicing IBM and DS' CATIA, ENOVIA and SMARTEAM Product Lifecycle Management software. Fluent, a world leader in computational fluid dynamics Computational fluid dynamics The numerical approximation to the solution of mathematical models of fluid flow and heat transfer. Computational fluid dynamics is one of the tools (in addition to experimental and theoretical methods) available to solve (CFD CFD - Computational Fluid Dynamics ) software has become a DS CAA V5 software partner. Fluent will develop, market and sell CFD solutions based on the DS CAA V5 architecture. IGE+XAO, a leader in electrical schematic A graphical representation of a system. It often refers to electronic circuits on a printed circuit board or in an integrated circuit (chip). See logic gate and HDL. software development, signed a strategic development agreement under which IGE+XAO as a Gold Software Partner will develop, market and sell Dassault Systemes CAA V5 based applications for electrical modeling (functional, topology topology, branch of mathematics, formerly known as analysis situs, that studies patterns of geometric figures involving position and relative position without regard to size. and logical) and electrical diagrams generation. Through this partnership, IGE+XAO will complement the existing DS' V5 electrical PLM solutions. Conference call information: The Company will host a teleconference call today, Thursday, October 23, 2003 at 4:00 PM CET/3:00 PM London/10:00 AM 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 by accessing www.3ds.com. A replay of the conference call will be available until November 22, 2003 via the Internet by accessing www.3ds.com. 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 2003 fourth quarter revenue, 2003 EPS on a reported basis, 2003 revenue growth in constant currencies, 2003 operating margin growth objective and 2004 financial objectives, including revenue growth objectives as reported and in constant currencies, 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 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 60,000 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 lifecycle of products from conception to retirement. Dassault Systemes offering includes PLM integrated solutions for product development (CATIA, ENOVIA, DELMIA, SMARTEAM), 3D solutions (SolidWorks), and 3D components (SPATIAL). 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
KEY FIGURES
(in millions of Euro, except per share data)
3rd QUARTER
3Q03 3Q02 Variance
----------- ----------- -----------
Process-Centric excluding
PDM revenue 124.6 125.9 (1%)
PDM revenue 21.4 19.6 9%
Design-Centric revenue 30.3 30.4 0%
Revenue 176.3 175.9 0%
AMERICAS 49.9 52.6 (5%)
EUROPE 79.2 79.0 0%
ASIA 47.2 44.3 6%
Operating Income (1) 44.0 38.8 13%
Operating Margin (1) 25.0% 22.1%
Net Income (1) 28.2 24.3 16%
EPS (1) 0.25 0.21 19%
Closing Headcount 4,063 3,905 4%
Nine Months Ended
YTD 03 YTD 02 Variance
----------- ----------- -----------
Process-Centric excluding
PDM 376.0 402.4 (7%)
PDM 59.0 51.8 14%
Design-Centric 92.0 95.5 (4%)
Revenue 527.0 549.7 (4%)
Americas 152.5 160.6 (5%)
Europe 239.0 251.6 (5%)
Asia 135.5 137.5 (1%)
Operating Income (1) 127.8 130.6 (2%)
Operating Margin (1) 24.3% 23.8%
Net Income (1) 81.7 82.8 (1%)
EPS (1) 0.71 0.71 0%
(1) Excluding acquisition costs
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT OF INCOME DATA
(in millions of Euro, except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Software 152.2 149.5 449.1 475.5
Service and
Other 24.1 26.4 77.9 74.2
--------- --------- --------- ---------
Total
Revenue EUR 176.3 EUR 175.9 EUR 527.0 EUR 549.7
Software 5.1 6.3 16.5 18.0
Service and
Other 19.4 23.9 65.9 68.2
--------- --------- --------- ---------
Total Cost of
Revenue EUR 24.5 EUR 30.2 EUR 82.4 EUR 86.2
Gross Profit EUR 151.8 EUR 145.7 EUR 444.6 EUR 463.5
Research and
Development 53.6 53.5 159.8 167.0
Marketing and
Sales 41.4 41.4 121.1 128.7
General and
Administration 12.8 12.0 35.9 37.2
Acquisition Costs 1.4 2.5 4.9 9.0
--------- --------- --------- ---------
Total Research,
Selling,
Administration
and Acquisition
expenses EUR 109.2 EUR 109.4 EUR 321.7 EUR 341.9
========= ========= ========= =========
Operating
Income (1) EUR 42.6 EUR 36.3 EUR 122.9 EUR 121.6
Financial
revenue and
Other 1.0 0.7 2.6 4.6
Income before
income taxes 43.6 37.0 125.5 126.2
Income tax
expense (16.5) (15.0) (47.9) (51.2)
--------- --------- --------- ---------
Net Income (1) EUR 27.1 EUR 22.0 EUR 77.6 EUR 75.0
========= ========= ========= =========
Basic net
income per
share (1) EUR 0.24 EUR 0.19 EUR 0.69 EUR 0.66
========= ========= ========= =========
Diluted net
income per
share (1) EUR 0.24 EUR 0.19 EUR 0.68 EUR 0.64
========= ========= ========= =========
Basic weighted
average shares
outstanding 112.9 114.2 113.1 114.1
(in millions) ========= ========= ========= =========
Diluted weighted
average shares
outstanding 114.8 115.0 114.3 116.8
(in millions)
(1) Excluding acquisition costs, operating income
and net income would have been as follows:
Operating
Income EUR 44.0 EUR 38.8 EUR 127.8 EUR 130.6
========= ========= ========= =========
Net Income EUR 28.2 EUR 24.3 EUR 81.7 EUR 82.8
========= ========= ========= =========
Diluted net
income per
share EUR 0.25 EUR 0.21 EUR 0.71 EUR 0.71
========= ========= ========= =========
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT 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 Ended
Sept. 30, 2003 Sept. 30, 2002 Variance
-------------- -------------- --------------
Software 152.2 149.5 1.8%
Service and Other 24.1 26.4 (8.7%)
-------------- -------------- --------------
Total Revenue EUR 176.3 EUR 175.9 0.2%
Software 5.1 6.3 (19.0%)
Service and Other 19.4 23.9 (18.8%)
-------------- -------------- --------------
Total Cost of
Revenue EUR 24.5 EUR 30.2 (18.9%)
Gross Profit EUR 151.8 EUR 145.7 4.2%
Research and
Development 53.6 53.5 0.2%
Marketing and Sales 41.4 41.4 0.0%
General and
Administration 12.8 12.0 6.7%
-------------- -------------- --------------
Total Research,
Selling,
Administration EUR 107.8 EUR 106.9 0.8%
============== ============== ==============
Operating Income EUR 44.0 EUR 38.8 13.4%
Financial revenue
and Other 1.0 0.7 42.9%
Income before income
taxes 45.0 39.5 13.9%
Income tax expense (16.8) (15.2) N/A
Net Income EUR 28.2 EUR 24.3 16.0%
============== ============== ==============
Diluted net income
per share EUR 0.25 EUR 0.21 19.0%
============== ============== ==============
Diluted weighted
average shares
outstanding 114.8 115.0
(in millions)
DASSAULT SYSTEMES
CONSOLIDATED STATEMENT 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:
Nine Months Ended
Sept. 30, 2003 Sept. 30, 2002 Variance
-------------- -------------- --------------
Software 449.1 475.5 (5.6%)
Service and Other 77.9 74.2 5.0%
Total Revenue EUR 527.0 EUR 549.7 (4.1%)
-------------- --------------
Software 16.5 18.0 (8.3%)
Service and Other 65.9 68.2 (3.4%)
-------------- --------------
Total Cost of
Revenue EUR 82.4 EUR 86.2 (4.4%)
Gross Profit EUR 444.6 EUR 463.5 (4.1%)
Research and
Development 159.8 167.0 (4.3%)
Marketing and Sales 121.1 128.7 (5.9%)
General and
Administration 35.9 37.2 (3.5%)
-------------- --------------
Total Research,
Selling,
Administration EUR 316.8 EUR 332.9 (4.8%)
============== ==============
Operating Income EUR 127.8 EUR 130.6 (2.1%)
Financial revenue
and Other 2.6 4.6 (43.5%)
Income before income
taxes 130.4 135.2 (3.6%)
Income tax expense (48.7) (52.4) N/A
Net Income EUR 81.7 EUR 82.8 (1.3%)
============== ==============
Diluted net income
per share EUR 0.71 EUR 0.71 0.0%
============== ==============
Diluted weighted
average shares
outstanding 114.3 116.8
(in millions)
Dassault Systemes
Condensed Consolidated Balance Sheets
(in Millions of Euro)
Sept. 30, 2003 Dec. 31, 2002
-------------- --------------
ASSETS
Cash and short-term
investments 429.1 388.4
Accounts receivable,
net 148.8 229.5
Other assets 311.3 302.3
-------------- --------------
Total assets EUR 889.2 EUR 920.2
LIABILITIES AND
SHAREHOLDERS' EQUITY
Total liabilities 274.9 291.9
Shareholders' equity 614.3 628.3
-------------- --------------
Total liabilities
and shareholders'
equity EUR 889.2 EUR 920.2
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