Dassault Systemes Cuts 2007 Goals as EPS Falls
French software company Dassault Systemes lowered its 2007 earnings and revenue goals to factor in a weaker dollar after it posted a 3 percent drop in third-quarter earnings per share on Tuesday.
Dassault Systemes, whose clients include global giants such as aerospace group Boeing , carmaker Toyota and electronics company Sony , also gave its first targets for 2008, predicting non-GAAP revenue growth of about 10 percent at constant currencies, with growth in software revenue of about 12 percent.
The company posted non-GAAP third-quarter earnings per share of 0.39 euros, a performance at the low end of company's guidance for 0-39-0.41 euros, which Dassault blamed on a higher tax rate for 2007. This was below the 0.41 euros targeted by a Reuters poll of 8 analysts.
Non-GAAP earnings are before acquisition costs and deferred revenue write-downs.
"Dassault Systemes had a satisfactory quarter, despite currency headwinds, with strong software performance," CEO Bernard Charles said in the statement.
On a non-GAAP basis, total reported revenue grew 7 percent to 301.3 million euros. At constant currencies growth was 12 percent, with all regions contributing to growth and led by Asia, up 27 percent.
Software revenue grew 17 percent at constant currencies but service revenue fell 11 percent, suffering from a strong comparison base with 2006.
Dassault reconfirmed its 2007 constant currency non-GAAP revenue objective for growth of about 14-15 percent but adjusted its 2007 non-GAAP reported revenue range to about 1.275 to 1.285 billion euros from a previous range of 1.285-1.30 billion euros and its 2007 non-GAAP EPS objective to about 1.96 euros to 2.00 euros from 2.00-2.05 euros previously.
This assumed a euro exchange rate of $1.45 against $1.35 previously.