Dassault Systèmes Announces Q2 2017 Earnings

CAD giant Dassault Systèmes announces 6 percent revenue growth for Q2.

The CAD/CAE juggernaut Dassault Systèmes has recently announced its earnings for the second quarter of the 2017 fiscal year, and you won’t be surprised to learn that it is doing rather well, with revenue up by 6 percent at €810.6 million, and software revenues up by 7 percent for the same period.

You can see the full details, taken from Dassault’s press release below. And if (like me) you have no idea what “non-IFRS” revenue is, then you can take a look at this external link for more information.

Gratuitous money shot.

Gratuitous money shot.

Second Quarter Performance (figures in constant currencies)

  • Non-IFRS revenue was up 6 percent at €810.6 million, while non-IFRS software revenue was up 7 percent
  • Non-IFRS new licence revenue was up 8 percent
  • Non-IFRS EPS was up 9 percent at €0.62
  • Diversification industries represent 33 percent of non-IFRS software revenue, an increase of 2 percent
  • Boeing will expand its deployment of Dassault Systèmes’ products across its commercial aviation, space and defense programs to include Dassault’s 3DEXPERIENCE platform

First Half of Fiscal Year Performance (figures in constant currencies)

  • Non-IFRS revenue was up 7 percent at €1,576.3 million
  • Non-IFRS operating margin was at 28.2 percent, down 20 basis points on investment effort and acquisition dilution acquisitions
  • Non-IFRS EPS of €1.15 increased 6 percent or 12 percent excluding a 5 cents impact from a reversal of tax reserves in the first half of fiscal year 2016
  • SOLIDWORKS non-IFRS software revenue was up 13 percent
  • Strong cash flow from operations was up 32 percent at €592 million

Updating 2017 Financial Objectives Based on Currency Weakness

The company’s 2017 non-IFRS financial objectives were updated: Confirming revenue growth constant currency objective, the company updated its reported revenue range and EPS for currency weakness.

  • Perspective of a 2-digit non-IFRS new licenses revenue growth for H2 2017
  • 2017 Non-IFRS revenue objective: €3.240 to €3.265 billion, about 6 to 7 percent growth in constant currencies
  • Non-IFRS operating margin objective of about environ 31.5 percent (unchanged)
  • Non-IFRS EPS objective: €2.62-€2.66, about 5 to 7 percent growth

And things are set to keep growing for the company, as it just announced lucrative new deals with Boeing and Washington State University.  You can see more details of these deals in this article.