Quarterly revenue topped a half-billion euros for the first time in company history. Results are quite good, but we notice that sales growth has slowed for three straight quarters. 
Dassault Systèmes (EPA: DSY) ended 2011 on a strong note, with solid growth for both the quarter and in full-year results. Revenues broke all-time highs for both SolidWorks and the PLM products in the quarter and for the year, and the company widened profit margins, as it said it would do following the acquisition of IBM PLM Services. The fourth quarter marks the first time Dassault has recorded a half-billion euros ($661.8 million) in revenue in a single quarter.
Because of the uncertainties of the global economy and the constant fluctuations in currency exchange rates, comparative results in this article use the constant currencies percentage figures provided by Dassault, calculated in accordance with accepted accounting standards.
Overall growth slowed in the fourth quarter, but even so sales rose 10% compared to 4Q10, which was a solid quarter for Dassault. Growth in the US slipped to 3% in the fourth quarter and was only 7% for the full year; Europe was responsible for the strong showing, despite the high-profile defections of Daimler, BMW, and VW to Siemens PLM, which will take years to play out in sales results.
Fourth quarter highlights
Total revenue for the fourth quarter of 2011 (ending December 31, 2011) was €512.1 million ($667.8 million), up 10% compared to 4Q10. Software revenue in the quarter was €462.1 million ($611.6 million), up 9%. Services revenue was €50 million ($66.2 million), up 11%.
Breaking down software revenue further, in the fourth quarter PLM Software revenue (primarily Catia, Enovia, Simulia, Delmia) was €371 million ($491 million), up 10%.
SolidWorks software revenue was €91.1 million ($120.6 million), up 9%, as compared to 4Q10.
In the fourth quarter new license revenue rose 13% compared to 4Q10, while recurring software revenue (maintenance) rose 8%.
By regions:
- Americas revenue was €135.7 million ($179.6 million), up 2% compared to 4Q10;
- Europe revenue was €251.3 million ($332.6 million), up 17% compared to 4Q10;
- Asia revenue was €125.1 million ($165.6 million), up 5% compared to 4Q10;
Fourth quarter net income was €85.4 million ($113.358 million), up 8.5% from 4Q10.
Full year highlights
Total revenue for fiscal year 2011 (January 1—December 31, 2011) was €1.78 billion ($2.37 billion) up 16% from FY10. Software revenues for the year were €1.6 billion ($2.1 billion) up 16%. Services and other revenue was €166.1 million ($220.5 million) up 10%.
Breaking down software revenue further, PLM software revenue for the year was €1.28 billion ($1.7 billion), up 17%. SolidWorks software revenue was €341 million ($452.6 million) up 12%.
By regions, for the year:
- Americas revenue was €488.8 million ($648.8 million) up 12% compared to FY10;
- Europe revenue was €827.1 million ($1.1 billion) up 18% compared to FY10;
- Asia revenue was €467.1 million ($619.9 million) up 15% compared to FY10.
Net income for FY 2011 was €290.5 million ($385.6 million), up 31.6% compared to FY2010.
Cash per share on December 31, 2011 was $12.45, down from $13.39 three months ago, stopping an upward trend of three quarters.
Growth rate still dropping
Last quarter we noted that like-quarter growth had dropped for two straight quarters, something that had not happened to Dassault since the start of the great recession in 2008-2009. It happened again in the fourth quarter; note the first chart below.
In other news, Dassault announced Capgemini as become its newest Solutions Integrator. Capgemini has a global presence in IT consulting, and has been a significant partner for Dassault rival Siemens PLM Software. Dassault said Capgemini would specialize in V6 integrations.
Ten of our exclusive financial charts follow.
L. Stephen Wolfe, P.E., a contributing analyst for Jon Peddie Research, provided research for this report.
