UPDATE 1-France's Dassault Systemes halves revenue growth forecast

Mon Oct 14, 2013 12:08pm IST

Stocks

   

* Q3 non-IFRS revenue 496 mln eur vs 520 mln expected

* CFO sees 2013 growth of 4-5 pct vs 7-8 pct previously

* Growth especially slow in Asia (Adds detail)

PARIS, Oct 14 (Reuters) - French software maker Dassault Systemes warned on Monday that revenue growth will be sharply lower than expected this year, citing sluggish orders, especially in Asia.

The company said it had suffered from lengthening investment decisions and that a portion of its clients had chosen to rent rather than buy software licences, bringing in less short-term revenue than expected.

Chief Financial Officer Thibault de Tersant told reporters on a call that the company now expected full-year revenue to rise by 4-5 percent, down from the 7-8 percent forecast in July.

The company, which is due to publish detailed results on Oct. 24, said that quarterly revenue was 496 million euros ($672.7 million), against its target of 520 million euros, while earnings per share were down 1 percent year on year at 0.88 euros.

In constant currencies, revenue grew 4 percent year on year, while the company had expected growth of 8-9 percent. Revenue rose by only 2 percent in Asia, 1 percent in the Americas and 7 percent in Europe.

The company lowered its fourth-quarter revenue target by about 20 million euros to at least 565 million euros.

It forecast quarterly earnings per share of 0.97 euros, down from the 1.03 euros previously expected, and an operating margin of 34 percent, against 34.5 percent previously. ($1 = 0.7373 euros) (Reporting by Natalie Huet and Gilles Guillaume; Editing by Greg Mahlich and David Goodman)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared