UPDATE 2-Dassault Systemes outlook disappoints, shares fall

(Adds CFO comments, stock reaction, Oddo downgrade)

By Dominique Vidalon

PARIS, July 31 (Reuters) - Dassault Systemes (DAST.PA) disappointed investors with its outlook, sending its shares lower on Thursday after it posted forecast-beating second-quarter earnings.

Oddo Securities brokerage also downgraded the French software company's stock to "hold" from "buy" following the company's recent outperformance.

Dassault Systemes, whose clients include global giants such as Boeing (BA.N), Toyota (7203.T) and Sony (6758.T), kept its 2008 financial goals and announced plans to repurchase up to 2 million shares over the second half of 2008, subject to market conditions.

"Third-quarter guidance is lower than expected at 305-315 million euros even if divestments is taken into account," Citigroup analysts wrote in a note.

Chief Financial Officer Thibault de Tersant told a conference call that demand has been sustained in the group's core aeronautics and car sectors.

"We still have a strong pipe. We remain very attentive but, for the time being, we believe our solutions are still an investment that our customers really want to keep," he said.

Dassault Systemes posted a 10 percent rise in non-GAAP second-quarter earnings per share to 0.46 euros, topping the 0.45 euros predicted by a Reuters Estimates poll of 10 analysts.

The non-GAAP basis is before acquisition costs and deferred revenue write-downs.

Total revenue rose 6 percent to 326.2 million euros with software revenue up 8 percent to 278 million euros.

The non-GAAP operating margin rose to 25.1 percent from 23.4 percent in the year-ago quarter.

By 10211 GMT, Dassault Systemes shares, which have gained 6 percent so far this year, were down 5.2 percent at 40.67 euros.

Dassault Systemes also said its board approved on July 29 the voluntary delisting of its American Depositary Shares from Nasdaq and its voluntary deregistration with the U.S. Securities and Exchange Commission (SEC). Dassault plans to file a Form 25 with the SEC in October 2008 to effect the delisting.

(Additional reporting by Yann Le Guernigou; Editing by Paul Bolding and Mike Nesbit)