Dassault Systèmes revenue up 4% in second quarter

Catia and Enovia were flat globally but strong in China and Korea. The company increased its shareholders dividend by 14%.

Dassault Systèmes (Euronext Paris: DSY.PA) reported year-over-year revenue growth of 4% for the second quarter of 2013. The company said that “despite the weak macro environment,” all regions maintained revenue growth. Asia was the strongest for Dassault, with a 12% increase in revenue when compared to 2Q12.

Total revenue for the quarter ending June 30, 2013 was €522 million ($683.8 million), up 4% (6% in constant currencies). Software revenue was €474.5 million, up 6% in constant currencies; services and other revenue was €47.5 million, up 9% in constant currencies.

Software revenue was up 6% year-over-year. (Source: JPR)

Net income was €81 million, ($106 million) down 3.5% from a year earlier.

The company said Catia (CAD) and Enovia (data management) revenue were flat compared to a year ago; other PLM brands in the Dassault portfolio increased 24%, driven by results from the new Geovia division (geoengineering) and strong results for Delmia (factory design) and Simulia (simulation). Breaking down revenue further (percentage change in constant currencies):

PLM Software: €369.6 million, up 6%
SolidWorks revenue: €104 million, up 6%.

"Other PLM" showed a strong quarter led by the new division Geovia. (Source: JPR) — “Other PLM” showed a strong quarter led by the new division Geovia. (Source: JPR)

Dassault said a strong quarter in Asia was led by new sales in China and Korea. European revenue was strong a year ago, making this quarter’s result look weaker. Revenue by geographic regions (percentage change in constant currencies):

Americas revenue: €145.4 million, up 6%
Europe revenue: €231.1 million, up 2%
Asia/Pacific revenue: €145.5 million, up 13%.

Sales of Catia were particularly strong in China and Korea during the second quarter. (Source: JPR)

In May the Dassault board of directors approved a 14% increase in the annual shareholders dividend, equivalent to €0.80 per share. The board also approved an option that allows shareholders to choose between cash and new shares. 68% of Dassault Systèmes’ shares opted to receive the dividend in the form of new shares.

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