Strong demand for Enovia PLM drove new software license sales up 36%.
[Editor's Note: The Euro to US Dollar exchange rate used in this article is €1 = $1.445.]
Dassault Systèmes http://www.3ds.com. (Euronext Paris: #13065, DSY.PA http://www.google.com/finance?q=EPA%3ADSY ) reported revenue rose 11% in the second quarter, compared to the same quarter a year ago. Total revenue was €428.6 million ($619.7 million).
Revenue from new software licenses highlighted the quarter, up 36% from 2Q10 to €110.4 million ($159.6 million). Total software revenue (new plus maintenance) was €388.4 million ($561.6 million). Revenue from services and other sources was €40.2 million ($58.1 million), essentially flat from a year earlier. In constant currencies, software revenue growth was up 18%, but currency fluctuations were responsible for a 6% drop in reported revenue.
In reporting the quarter, Dassault Systèmes CEO Bernard Charlès said sales of their Enovia PLM line were up 36% year-over-year, and Catia 3D CAD sales were up 13% thanks to some new deployments of Catia V6. Mainstream 3D software revenue—primarily SolidWorks—was €81 million ($117.1 million). In charts provided by DS, it was noted the SolidWorks average sales price during the quarter was down 8% from a year earlier, even though unit sales were up 22% to 11,893.
It has now been a full year since the former IBM PLM sales organization became part of DS. In the current quarter, Dassault says 57% of revenue came from its “PLM Business Transformation Channel,” most of which is the old IBM organization. During the presentation to analysts, Charlès took time to highlight the energing three-tier channel structure: the direct channel (mostly the IBM division), the indirect PLM Value Channel (enterprise products sold by dealers), and the Professional or Volume Channel, primarily the SolidWorks reseller channel. Dassault has focused on the direct channel for the last 18 months due to the IBM acquisition, but now says it will be working to increase staff and resources in the other two channels.
Cash per share on June 30, 2011 was $11.87, up from $10.83 three months ago, based on available cash of $1.40 billion.
- Americas revenue was up 7% to €124 million ($179.3 million); it would have been up 21% if the effects of currency exchange rates were excluded,
- Europe revenue was €188 million ($271.8 million), up 8%. The comparison is low because of a large number of one-time maintenance payments in the year-ago quarter.
- Asia/Pacific revenue was €116 million ($167.7 million), up 21%; DS cited China and India as “especially strong.” The company also said revenue from Japan was not as low has had been expected, given the circumstances.
Seven of our custom charts follow.
L. Stephen Wolfe P.E., a Jon Peddie Research Contributing Analyst, provided research for this report.