Earnings Call Excerpt
Dassault Systemes SA (DASTY)
Q2 2007 Earnings Call
July 26, 2007 9:00 am ET
Executives
Michele Katz - U.S. IR Executive
Bernard Charles - President & CEO
Thibault de Tersant - Senior EVP & CFO
Presentation
Unidentified Company Representative
So good morning, everyone. Sorry for the delayed start. We had a technical problem, but it was only a technical display. Nothing else.
I’m pleased to go and review with you on the second quarter 2007 on the (inaudible) for 2007. As you have seen, I’m sure, the press releases. Our results are above the objectives, both on the revenue and EPS. Despite the add/wins on the (inaudible). I think we can see that the source of this growth is coming from both older (inaudible), and I will explain that, on basically all geographies.
ENOVIA was up 32% excluding (inaudible) rate, very strong on the three fronts. Basically the VPLM, the Smart Team on the MatrixOne. I will explain that later. The CATIA growth was also very strong with large customer transactions. Basically, good performance with all brands.
The go-to-market, the transition, transformation of our distribution channel is working very well, both on the PLM channel management. As you know, this channel transformation has been orchestrated for the next 18 months, so to start from 1/1/07 ongoing through the process until 1/1/08. It shows excellent results. The business partners are very pleased with this position and they are making more money. Therefore, they can invest for growth.
On the new brands, we have announced a new brand called 3D (inaudible) for online applications. I will also explain why it’s so critical. I think two strategy goals with (inaudible) expand the PLM scope to involve consumers. The second aspect of it is create new communities of users. And I said communities, because we will have professional communities on the (inaudible) communities. We are upgrading slightly the full year revenue objectives, up 14% to 15%. Confirming the EPS objectives for the full year, so in some way, also using the risk for the fourth quarter by definition of this. As you know, we have not taken all the upside created for the first half for the update of the full year revenue, but I think it’s a way to make sure we will achieve our objective on what we have said we would be doing.
So if we go in more details about that, the year-to-date 17% revenue growth; 13 for the second quarter. The software year-to-date 15%, 10% second quarter. Please keep in mind that the base effect was very strong second quarter; 2006 was as very special quarter with large transaction as we announced it last year in July, which was the Abaqus transaction, so the base comparison was high. But despite that, we grew 10%. EPS is up 14%, both in the quarter on the first half.
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