Oh my! Dassault revenues down 9% on the year

No wonder PTC is gloating. Dassault Systemes reports its fiscal year 2009 revenues were down 9% from last year. The 1.25 billion it earned in Euros works out to about $1.7 billion in US dollars. 

The biggest collapse was in subscription (maintenance or service) revenues, which dropped like a stone in Q4, down 24%, 19% on the year.

Sales of SolidWorks (aka "Mainstream 3D software Revenue") fell 9% from last year. 

Despite the gloomy results, DS managed to put on its happy face and declare, "2009 fourth quarter and full year results in line with Company financial objectives."

Source.

Comments

[Devon T. Sowell]

RE:The biggest collapse was in subscription (maintenance or service) revenues, which dropped like a stone in Q4, down 24%, 19% on the year.

I hope SolidWorks is now considering revamping the subscription maintenance program.

Devon

[Matthew West]

Ralph,

The numbers you’re quoting here (-24% and -19%) are revenue numbers for consulting services, not subscription maintenance. The press release noted the following regarding that line of the report:

“Evolution of services and other revenue during 2009 principally reflected a decrease in consulting activity as a consequence of lower new software sales.”

Revenue resulting from subscription maintenance makes up the bulk of a different line in the report, which shows that “Software revenue…of which periodic licenses, maintenance and product development revenue” experienced a 1% decline in constant currencies for the quarter and a 5% increase for the year. Regarding this, the report stated:

“2009 IFRS and non-IFRS software revenue was lower by approximately 8%, reflecting a decrease in new licenses revenue of 32% offset in part by periodic licenses, maintenance, and product development revenue growth of 5% (all figures in constant currencies).”

Despite the continued effects of the global economic crisis, subscription numbers remain strong across the DS group.

Matt / SolidWorks

[Devon T. Sowell]

Matt-

Thanks for the correct info.

Devon