Dassault Systemes revenue up 8% in Europe

A stock split and a change of registry overshadow financial results. Catia sales are down.

PLM vendor Dassault Systèmes (Euronext Paris: DSY.PA) saw revenue rise by 9% in the first quarter of 2014, compared with 1Q13. Total revenue was €502.2 million ($688.1 million). In constant currencies revenue was up 8%. Net income was €53.9 million ($73.8 million).

During the announcement of first quarter results, the company announced it will split its stock two-for one, effective July 1, 2014. The company will also change its official registry from France to the European Union; the move offers tax advantages better suited to its global operations.

Revenue by regions:

Americas: € 138.4
Europe/Middle East: € 231.6
Asia/Pacific: € 132.3

Dassault Systemes is more heavily dependent on Europe than its rivals in PLM.

As is normal for DS, revenues fell sequentially in the first quarter. Catia revenue fell 5% year-to-year in Euros. SolidWorks revenue year-to-year grew 1% in euros and 6% in dollars. Service revenue jumped 35%, boosted by the services revenue from recent acquisitions RTT and Apriso. The only software type to grow double digits sales revenue was “Other PLM software” (which includes acquisitions), up 10% year-to-year.

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L. Stephen Wolfe, P.E., a contributing analyst for Jon Peddie Research, provided research for this report.