DS released preliminary fourth quarter results today, showing that the global economic
crisis is affecting all price points along the PLM curve. DS reports that preliminary
non-GAAP total revenue is estimated at €382 million, compared to the company’s
objective of €385 million to €395 million. While falling short of expectations, Q4 revenue
was still up from last year’s Q4 revenue of €371 million.
CEO Bernard Charlès said that the sales environment deteriorated during Q4, and that the
shortfall is "principally due to deferrals of contracts that were otherwise ready for final
agreement and signing during December." Durinng the conference call, additional color
– Wow: Q4 new license revenue declined 20% compared to last year (but, like PTC, DS’
revenue is predominantly from recurring sources)
– Recurring revenue was up 12% from last Q4.
– DS saw no order deferrals due to the upcoming CATIA V6 launch
– Revenue was up 12% in the Americas, up 5% in Europe but flat in Asia
– Simulia revenue was on target, even as sales in the other PLM brands were not
– Automotive suppliers were highlighted by DS as having contracts slip out of Q4
– At least two of the deals that should have closed in Q4 but did not have already closed
– Todays’ news has not triggered any new cost-reduction programs
– DS saw "some decrease in ASPs as competitors struggle" but this did not affect Q4
DS will announce final results on February 11.