Dassault Systèmes reported final results for 2008 earlier today and issued outlook for
2009 that reflects what the company believes will be a "challenging" 2009, with conditions
similar to those seen in Q4 2008.
Highlights from the earnings calls and releases:
– For 2008, total revenue was EU1.335 billion, up 6%. Revenue from new licenses fell 2.4%
even as maintenance and other forms of software revenue grew 15.6%. CATIA revenue was
up 9%, ENOVIA up 7% and revenue from "mainstream" software solutions was up 9.5%.
Nothing was specified, but Simulia revenue was "up over 20% on a non-GAAP, ex-fx
basis." On a geo basis, total revenue from the Americas was up 5%, Europe up 8%, Asia
– Interesting note: The number of SolidWorks units sold in 2008 only went up 1% from
2007, so customers must be buying more of the PDM and analysis add-ons.
– In constant currency, the company expects to see revenue growth of between 1% and
3% in 2009 or EU1.405 billion to EU1.425 billion.
– In a masterful example of doublespeak, DS is implementing "new cost and productivity
optimization measures in 2009" which, combined with previous initiatives introduced in
2008 "will bring positive effects progressively during 2009 and yield further savings as we
move into 2010." CFO Thibault de Tersant did say that these measures aren’t "staffing
related." In total, the company expects to save about EU35 million in 2009.
– DS doesn’t usually offer information like this, but today said that in an effort to replace
some of the 45 percent of its 2008 revenue found in the stressed automotive and
aerospace sectors, it would continue to invest in high-growth emerging countries and
diversify its customer base towards the energy, environment, consumer goods or
construction sectors, where it sees sustained demand,
– Q4 2008 saw license revenue fall by 22%, and the company assumes a similar fall in Q1
2009. Using typical seasonal patterns, this would result in an overall decline of about 10%
Finally, de Tersant also said in the call with analysts that the company has "not given up"
on its goal of doubling revenue between 2005 and 2010. Total revenue in 2005 was
EU934.5 million, so DS will have to somehow grow revenue on the order of EU500 million
in the next two years – clearly, it will have to acquire something big to make that happen.