posted on 8/3/2011 4:37:13 PM
In a quarter that included the rollout of new version of its PLM software that adds consumer simulation and a SaaS-based subscription model, Dassault Systèmes is reporting a flurry of customer activity that has resulted in double-digit revenue growth.
As some industry observers espouse the use of product lifecycle management systems as a way for manufacturers to shrink the time it takes to get new products from design to the assembly line, Dassault Systèmes, a provider of 3D design and PLM software, is reaping the rewards as it tends to a flurry of new customer activity.
For its fiscal second quarter, ended June 30, Dassault reported a 20% year-over-year increase in PLM software revenue, resulting, in part, from last year’s IBM PLM acquisition. However, most of the new sales surround the June rollout of Version 6 Release 2012 (V6) , which extends the company’s PLM portfolio beyond design and product data management into global system planning, virtual consumer experiences, and even a cloud-based version that Dassault hopes will appeal to small and midsize manufacturers.
Meanwhile, V6 and the company’s 3D offerings are already appealing to large enterprise customers. In April, the company announced that commercial jet maker Embraer S.A. will deploy a complete 3D digital manufacturing system for its Phenom and Legacy 500 executive airplanes. Using Dassault’s CATIA and DELMIA products for virtual design, production, and manufacturing, Embraer is said to have a 3D platform for process planning and detailing, workload balancing, costing, and cycle-time calculations, as well as a new 3D process for design validation and optimization. Eventually, Embraer will integrate an MES solution that allows shop-floor workers and suppliers across many locations to access the latest 3D models and instructions in real time, the company said.
In addition, Dassault recently reported that Jaguar Land Rover, Cessna, Alstom Transport, and Benetton Group have all committed to V6 deployments.
Dassault is expanding its presence in Asia and the Americas, which grew 26% and 21%, respectively, year-over-year, according to the company, as it increases its activity in the aerospace industry.
Total revenue in the quarter (including software and services) was €428.6 million, up 17% (in constant currencies) from €385.6 million in the same period last year. PLM software revenue was up to €307 million in the quarter from €268.4 million in Q2 2010, and 3D software revenue grew 11% year-over-year to €81.4 million from €78 million.
According to market researcher CIMdata, the PLM market grew 9.7% in 2010. In its new 2011 PLM Industry Review and Trends Report, the research firm said it expects continued growth for the foreseeable future. “After a down year in 2009, the global PLM market came back strong in 2010,” said CIMdata research director Stan Przybylinski in a statement. “With the world’s economies still in recovery mode, this bodes well for continued PLM investment growth…in 2011 and beyond.”
Dassault is forecasting third quarter 2011 total revenue of about €405 million to €415 million (not using International Financial Reporting Standards), yet remains optimistic that its fiscal year will close on a high note.
“Overall, we are well positioned going into the second half of the year,” said Dassault CFO Thibault de Tersant in a statement. “And despite the uncertainty of the global economic environment, we have increased confidence in our 2011 financial objectives, thanks to our second quarter results.”