February 2, 2017 / 8:29 AM / 3 years ago

UPDATE 1-Dassault Systemes Q4 results beat guidance, although new licences lag

* Dassault Systemes shares rise, outperform market

* Q4 revenues and earnings beat forecasts (Adds CFO and analyst comments, stock price)

By Alan Charlish

Feb 2 (Reuters) - French 3D design software producer Dassault Systemes reported on Thursday fourth quarter earnings and revenues that beat forecasts, although its new license revenues growth for 2016 came in below its target.

The company attributed the fact that it missed its guidance for double-digit growth in this area to the impact of the transition to its new ‘3DExperience’ platform.

“When we did our initial guidance for 2016 we didn’t anticipate this level of interest for 3DExperience,” Chief Financial Officer Thibault de Tersant told journalists.

Nevertheless new licenses rose 10 percent in the fourth quarter, and Tersant was confident of keeping this level of growth in 2017.

The company also posted 10 percent growth in Q4 non-IFRS revenues and earnings per share, which both beat guidance given in October.

Dassault Systemes’ shares rose 3.3 percent in early session trading, outperforming a 0.1 percent dip on Paris’ SBF-120 equity index.

For 2017, the group expects revenues to rise 6-7 percent in constant currencies to 3.28-3.30 billion euros, an operating margin of about 31.5 percent and EPS of about 2.65-2.70 euros.

Tersant also remained confident in the company’s target of doubling 2013 EPS and revenue by 2019.

Berenberg analyst Gal Munda said it was positive that the company had confirmed its 2019 guidance, although he also noted that the 2017 guidance was slightly below consensus.


Tersant said that although he had not seen yet any impact from last year’s U.S. Presidential elections in the company’s figures, he expected more volatile market conditions in 2017.

“With more inflationary tensions, rising interest rates, there are a certain number of new parameters in clients’ decision making processes,” he said.

He added that Britain’s vote to leave the European Union had caused at least three projects to be put on hold.

“There has been a slowdown in growth in the UK for us because of this in 2016. But if we look more in the medium-term, I think these clients are not just sitting and doing nothing, they are going to look for a framework which will allow them to implement these projects. So I remain confident about the improvement of our results in the UK.”

$1 = 0.9266 euros Reporting by Alan Charlish; Editing by Sudip Kar-Gupta

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