February 6, 2019 / 7:21 AM / 6 months ago

France's Dassault Systemes beats estimates on strong 3DEXPERIENCE growth

(Reuters) - French software company Dassault Systemes said on Wednesday fourth-quarter revenue topped its guidance, driven by a strong performance by the 3DEXPERIENCE platform.

The company, which in December announced the acquisition California-based IQMS as part of a strategy to expand the use of 3DEXPERIENCE to small an medium-sized companies, said revenue from the platform increased by 24 percent in 2018.

“2018 was a remarkable year, with a record level of large 3DEXPERIENCE transactions including important decisions within our core industries of aerospace, automotive and industrial equipment,” Chief Executive Bernard Charles said in a statement.

Fourth-quarter revenue came in at 1.04 billion euros ($1.19 billion) versus guidance of 982 million to 1 billion euros.

Its operating margin was 37.4 percent, beating the company’s guidance of about 36.5 percent

The company also announced a contract with Airbus for the 3DEXPERIENCE platform.

The contract is worth tens of millions of euros over two years, Chief Financial Officer Pascal Daloz told journalists during a call.

For 2019 the company is targeting revenue growth of 10 to 11 percent, with an operating margin of about 32 to 32.5 percent, up from the 31.8 percent reported for full-year 2018.

“We see a slowdown in the economy but for us the principle cyclical element is linked to the adoption of technology, and there we are rather in a ramp-up phase,” Daloz said.

($1 = 0.8776 euros)

Reporting by Alan Charlish in Gdynia; editing by Sherry Jacob-Phillips and Jason Neely

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