Boeing signs a new long-term deal worth $1 billion to expand its use of Dassault software.
Dassault Systèmes (Paris:DSY) reported a positive second quarter, with all results at or exceeding predictions. Software revenue was up 7% while new license revenues were up 8%. Total revenue for the quarter was €806.4 million, up 6% in constant currencies from a year ago. During the announcement of results, Dassault announced a new multi-year deal with Boeing which will increase deployment of Dassault Systèmes’ products across its commercial aviation, space and defense programs to include the current generation of software, which Dassault refers to as the 3D Experience platform.
Net income in the second quarter (ending June 30, 2017) was €122.9 million.
Total software revenue in the quarter was €718.5 million. Dassault says the best performing markets were aerospace and defense, life sciences, AEC, and consumer packaged goods. Software revenue by regions:
- Americas software revenue €224.4 million
- Europe software revenue €297.4 million
- Asia/Pacific software revenue €196.7 million
Revenue from the SolidWorks division in the quarter was €176.7 million up 14% year-over-year. SolidWorks continues to emphasize perpetual licensing to its customers, compared to its closest rival Autodesk Inventor, which is now available by subscription.
Dassault said sales of the Catia software line were up by “double digit” percentages in the Americas and Europe, but total revenue growth for Catia was only up 1% year-over-year due to declines in Asia.
Dassault described the new deal with Boeing as “biggest in its history.” Paris newspaper Le Figaro is reporting the deal to be worth over $1 billion and will extend its use of DS software for 30 years.