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Research Tree provides access to ongoing research coverage, media content and regulatory news on DASSAULT SYSTEMES SA. We currently have 6 research reports from 1 professional analysts.
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DASSAULT SYSTEMES SA
DASSAULT SYSTEMES SA
Long decision-making at customers for the 3DEXPERIENCE
25 Oct 16
Dassault Systèmes performed well in Q3 16 despite the fact that new licences revenue growth did not accelerate and was at the same pace as in Q2 16. Q3 16 (IFRS standards): Total revenue reached €735m (+9%, +9% at constant currency and including the change of perimeter). Excluding currency effects, software revenue growth (+9%) was driven by Asia (+18%/+17% non-IFRS) thanks to China and South Korea. The activity was less dynamic in the Americas (+6%/+3% non-IFRS) due to the weakness in Latin America and Europe (+5%/+4% non-IFRS). The operating income increased by 8% to €161m, leading to an operating margin of 21.9% of revenue (-0.1pts). There was a significant increase in R&D costs (+15% to €132m) given a tax credit reversal. The amortisation of intangibles related to acquisitions amounted to €37.8m (-12%) and there were significant other operating expenses (€-12.8m vs €-0.6m in Q3 15). Group net profit increased to €113m (+7%) after rather stable net financial costs (€-0.8m vs €-1.0m in Q3 15) and similar income tax rate at 28.2%. Financial situation: The substantial net cash situation increased to €1.46bn on 30 September 2016 (vs €1.35bn on 31 December 2015). On 9-month 2016, the operating cash flow declined slightly to €526m (-1%) due to a significant increase in the change of WCR related to higher tax downpayments and timing effects of tax refunds during Q3 16. Nevertheless, the operating cash flow exceeded 9-month cash out-flows which included net capex of €32m, the acquisition of companies (including CST) for €246m net of the cash acquired (vs €18m in 9m 15), the purchase of treasury shares for €52m (vs €28m in 9m 15) and the dividend paid in cash to shareholders for €102m. The proceeds from the exercise of stock options were €16m.
New licences back to growth
21 Jul 16
Q2 16 was above guidance with non-IFRS revenue of €754m (guidance: €735-745m) and non-IFRS operating margin up 1pt to 30.4% of revenue (guidance: 29-30% of revenue). The other good point was the increase yoy in new licences revenue following a decrease yoy in Q1 16. Q2 16 IFRS figures - Revenue reached €754m (+5% and +7% at constant currency). Excluding the currency effect, revenue growth was driven by software revenue (+9%) while services & other revenue decreased (-2%). All geographic areas contributed to software revenue growth. Asia was the weakest (+4%), mainly Korea, India, and Southern Asia, compared to the Americas and Europe (respectively +11% and +10%) – all growth rates at constant currency. - The operating income increased by only 2% to €161m, corresponding to a margin of 21.4% of revenue (-0.6pt). There was an increase in the cost of services & other revenue (+6%), while services & other revenue decreased and R&D expenses and G&A costs increased at a higher pace than total revenue (respectively +8% and +11% vs +5% for total revenue). In addition, other operating expenses increased to €-11m (vs €-4m in Q2 15). - Group net income was rather flat at €101m (+1%) after higher net financial expenses of €-7.6m (vs €+3.1m in Q2 15) and lower income tax rate (-3.6pts to 33.1%). H1 16 IFRS figures - Revenue reached €1,445m (+6% and +7% at constant currency). At constant currency, revenue growth was mainly attributable to software revenue (+7%). Services & other revenue increased moderately (+2%). By geographic area, the Americas and Europe were the most dynamic (respectively +10% and +8%) while Asia was weaker (+5%). - Operating income increased to €284m (+6%), corresponding to a stable margin rate at 19.6% of revenue. - Group net income was €191m (+12%), after higher net financial expenses of €-17m (vs €+4m in H1 15) and a lower income tax rate (-9pts to 27.5%). - Operating cash flow was substantial as usual (€449m, +8%) and main cash outflows were the purchase of treasury shares for €43m and the payment of the dividend for €102m. The group ended H1 16 with a comfortable net cash situation of €1.64bn which enables the funding of acquisitions by cash, as will be the case to acquire CST. CST is a German company specialised in electromagnetic and electronics simulation which had revenue of €47m in 2015. Dassault Systèmes will pay €220m in cash. The operation is expected to be completed in Q4 16.
Satisfactory quarter given the high basis of comparison
22 Apr 16
Q1 16 earnings – IFRS standard Revenue reached €691m (+6% vs +30% in Q1 15) and was in the upper range of guidance. The growth rate was similar at constant currency (vs +17% in Q1 15). Excluding currency effects, software revenue increased by 6% (vs +16% in Q1 15) and services & other revenue grew by 8% (vs +27% in Q1 15). The recurring software revenue represented 74% of total revenue software. Revenue growth was attributable to all geographic areas: +8% in the Americas driven by the US, +7% in Asia led by China, +6% in Europe thanks to dynamic activities in Southern Europe and Central Europe. Operating income increased to €122.5m (+11%) which corresponded to an improvement in the margin rate of 0.7pt (vs +1pt in Q1 15) to 17.7% of revenue. Net financial expenses were €-9m (vs net financial income of €0.7m in Q1 15). Group net profit surged to €90m (+29%) due to the low income tax rate related specifically to the reversal of a tax reserve (20% vs 36% in Q1 15). The operating cash flow increased to €309m (+17%) after an improvement in the change of WCR. Considering traditionally low net capex (€9m) and no payment related to acquisitions, and the purchase of treasury stocks for €34m, the group ended Q1 16 with a net cash situation of €1,590m.
Strong growth and operating margin in Q4 15.
04 Feb 16
+Q4 15 (IFRS standards)+ Revenue surged to €796m (+18%, +11% on constant currency). Excluding the currency effects, software revenue grew by 11% (o/w +9% organically, non-IFRS) while services increased by 8%. Asia and Americas where performance improved in Latin America were the most dynamic geographic areas (respectively +15% and +12% on constant currency). Operating income surged to €216m (+45%) representing an operating margin of 27.1% of revenue (+5pts). All operating expenses increased at a lower pace than total revenue, the amortization of acquired intangibles related to the acquisition of companies decreased to €-39m (-5%) and the other operating expenses declined to €-5.6m (vs €-7.9m in Q4 14). Group net profit was €126.5m (+27%) after financial expenses of €-2.8m (vs €+2m in Q4 14) and a higher income tax rate (+7pts to 40.3%). +FY2015 (IFRS standards)+ Revenue reached €2,839m (+24%, +13% on constant currency). It included the full year contribution of Accelrys and Quintiq which were acquired in April and September 2014 respectively. Software revenue increased by 13% on constant currency (o/w +8% organically, non-IFRS). Operating income was €633m (+47%), 2% above our expectation, representing an operating margin of 22.3% of revenue (+3.5pts). Group net profit was €402m (+38%) after net financial expenses of €-0.1m (vs €+15m in 2014) and a higher income tax rate (+1.5pts to 35.9%). Strong operating cash flow (€633m, +27%) exceeded capex (€44m, -4%) and the return to shareholders i.e. the payment of the dividend (€98m) and the repurchase of shares (€28m). The cash outflow related to the acquisition of companies was significantly lower than in 2014 (€20m vs. €953m in 2014). In Q4 15, Dassault Systèmes fully drew down a new credit facility of €650m due to mature in 2020. At year-end 2015, the Group had a net cash situation of €1.35bn (vs. €825m in 2014).
Solid growth amplified by currencies and tax-related items
22 Oct 15
Dassault Systèmes had a good Q3 15 characterised by strong revenue and earnings growth amplified by currency effects, a good achievement in terms of new licences revenue and various positive tax-related items. Q3 15 (IFRS standards): Total revenue reached €676m (+20%, +11% at constant currency and including the change of perimeter). Excluding currency effects, revenue growth was driven by Europe (+17%/ +13% non-IFRS) and the Americas (+12%). The activity was less dynamic in Asia (+1%/ 0% non-IFRS) but the basis of comparison was challenging (+22% last year). The operating income surged by 45% to €148.8m, representing an operating margin of 22% of revenue (+3.8pts). The amortisation of intangibles related to acquisitions amounted to €42.8m (+24%) and there was practically no other operating expenses unlike last year (€-0.6m vs €-9.8m in Q3 14). Group net profit increased to €105.5m (+48%) after net financial costs of €-1m (vs €+5.6m in Q3 14) and a lower income tax rate (-5.4pts to 28.2%) due to a reversal in tax reserves. The substantial net cash situation increased to €1.23bn on 30 September 2015 (vs €825m on 31 December 2014). On 9-month 2015, the operating cash flow reached €530m (+19%) and exceeded cash out-flows which included net capex of €31m, the acquisition of companies for €18m net of the cash acquired (vs €935m in 9m 14), the purchase of treasury shares for €28m (vs €151m in 9m 14) and the dividend paid in cash to shareholders for €98m. The proceeds from the exercise of stock options were €25m.
Driven by solutions other than CATIA and ENOVIA
24 Jul 15
Q2 15 earnings (IFRS standard). Revenue reached €716m (+29%, +16% at constant currency and including the acquired companies). Excluding currency effects, revenue growth was significant in Asia (+22%), largely ahead of the Americas (+15% despite lower activities in Latin America) and Europe (+13%) driven by France and Southern Europe. The basis of comparison was particularly favourable for the Asian activities (flat revenue in Q2 14). The operating income surged to €157.7m (+58%) after the amortisation of intangibles related to acquisitions of €37.5m (+25%) and lower other operating expenses (€-4m vs €-11m in Q2 14). Group net profit was €100.3m (+51%) after a higher income tax rate (+1.2pts to 36.75%). On 30 June 2015, Dassault Systèmes still had a significant net cash situation of €1.15bn (vs €825m on 31 December 2014). In H1 15, the operating cash flow amounted to €417m and was largely above the cash out-flows which did not include significant acquisitions of companies unlike last year (€18m vs €657m net of the cash acquired in Q2 14) and very little purchase of treasury shares (€5m vs €130m in Q2 15). The dividend paid in cash to shareholders was €96m.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
09 Dec 16
Ideagen* (IDEA): Acquisition of IPI Solutions (CORP) | Lombard Risk Management* (LRM): Atos deal improves routes to German market (CORP) | Photo-Me* (PHTM): Upgrade to FY forecasts (CORP) In other news… Frontier Developments* (FDEV): ED coming to Xbox and Planet Coaster update (CORP) | LiDCO* (LID): Analyst interview (CORP) | Rude Health: Analyst interview
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
A Good Deal of Potential
07 Dec 16
The Millstream acquisition should generate substantial shareholder value in our view. It boosts adjusted EBIT by c.50% for just a £15.5m price tag, and the complementary customer set and product base create excellent cross selling opportunities. We raise our FY17 adjusted EPS estimate to 7.6p and introduce a FY18 estimate of 9.6p. PROACTIS is building its reputation for intelligent M&A and shrewd organic delivery; we expect to see further delivery on both fronts.