Dassault Systemes' flagship platform sales slow, but targets confirmed
Technology
Dassault Systemes' flagship platform sales slow, but targets confirmed
(Reuters) - French software maker Dassault Systemes (DAST.PA) said revenue rose 5% in the second quarter, but shares fell to a four-month low after it flagged slower sales growth in its flagship platform and clinical data businesses.
The company, which supplies software to automakers, airplane manufacturers and industrial clients, posted a 7% increase in non-IFRS earnings per share to 0.28 euros on revenue of 1.45 billion euros ($1.61 billion) in the April to June period.
It confirmed its full-year and mid-term targets, saying it saw a renewed focus on investment in innovation from customers and pointing to a rebound in China.
The group's shares slid as much as 6.7% however, putting them on track for their biggest one-day drop since April.
JPMorgan said in a note that the overall picture looked "incrementally challenging" after important performance indicators, including for its flagship software platform 3DEXPERIENCE and clinical trial platform Medidata, slowed in the quarter.
Sales growth for the 3DEXPERIENCE platform, which offers 3D modelling, data management and project management tools, slowed in the quarter to 2% from 10% in the previous quarter and 24% in the fourth quarter of last year.
Medidata, a unit that analyses patient data for clinical trials and was a significant revenue generator during the COVID-19 pandemic, delivered high single-digit growth in the quarter, the company said.
That was down from 13% in the first three months and 14% in the second quarter of last year. The company attributed the decrease to a "reduction in study starts compared to very high post-COVID levels".
For the third quarter, Dassault Systemes expects revenue to reach between 1.4 billion and 1.42 billion euros, diluted earnings to come in between 0.26 and 0.27 euros per share, and an operating margin of between 30.2 and 30.5%.
