Dassault reports modest first quarter

Simulation software was the only area to report double-digit growth.

Dassault Systèmes reported a modest first quarter, reflecting continuing macroeconomic malaise in the manufacturing segment. Total revenue was €485.3 million, ($630.9 million) up 4.9% from a year ago. Net income was €73.7 million, ($95.8 million) up 2% from 1Q12.

Growth has been below 10% for five consecutive quarters.

Overall new license revenue fell 5%; SolidWorks unit sales were up 1% year-to-year. Software revenue was €446.4 million, ($580.4 million) up 6% from 1Q12; this is both new and recurring license sales. Service and other revenue was €38.9 million, ($50.5 million) down 8%, suggesting existing customers were cutting back to control spending. Enovia data management software sales were down, while Simulia simulation revenue gained.

Simulia simulation software, included in the Other PLM software category, rose 22% in the quarter (year-over-year).

Breaking down software sales:

All PLM Software was €343.8 million, ($446.9 million) up 6.9%
Catia software was €197.6 million, ($256.9 million) up 3.5%
Enovia revenue was €56.4 million, ($73.3 million) down 2.9%
Other PLM software (primarily Delmia and Simulia) was €89.8 million, ($116.7 million) up 22%.

Software revenue set a first quarter record.

Revenue by geographic regions:

Americas sales were €133.4 million, ($173.4 million) up 5.5%
Europe sales were €215.5million, up 5.6%
Asia sales were €136.5 million, up 3.4%.

Dassault Systèmes consistently receives a higher percentage of revenue from Europe than any other CAD/PLM vendor.

Dassault Systèmes used today’s conference call with analysts to announce two acquisitions:

Archividèo, a company that automates the creation and management of large 3D urban environments and landscapes. Dassault will use the technology to expand its built environment portfolio.
FE-Design, maker of simulation software for non-parametric optimization for both structures and fluids.