Dassault Systemes (NASDAQ: DASTY; Euronext Paris: #13065,
DSY.PA) reported a strong first fiscal quarter of 2007, with
total revenue of €290.9 million ($396.8 million). The total
revenue growth in constant currencies was 21%. The company
credits its new attention to the PLM mid-market and the
re-alignment of its sales relationship with IBM for the growth.
In the last few days the company as begun to discuss changes to
its VAR channel -- changes we think will cause unrest in some
quarters but are necessary for Dassault’s next phase of growth.
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Revenue Summary
Software revenue for the first fiscal quarter (January-March
2007) was €245.8 million ($335.2 million), up 15%. Service
revenue was €45.1 million ($61.5 million), up 16%. PLM revenue
was €235 million ($320.5 million.), up 16% from €200.9 ($274
million) in 2006. ENOVIA contributed €57.4 million ($78.3
million) to the PLM total revenue. “Mainstream 3D” was €55.9
million ($76.2 million), up 9% from €51.2 million ($ 69.9
million) year-over.
Licenses of 3D CAD products increased 15% to 19,625. Of that
total, SolidWorks sold 11,813 copies and CATIA 7,812.
Changes to VAR Channel
In discussions with reporters at the recent CATIA Operators
Exchange (COE) Annual Conference, Dassault CEO Bernard Charles
said the current SolidWorks reseller channel will in the future
be the Dassault Systemes Volume Channel. It is part of a larger
move to assert the Dassault corporate identity into some of the
company’s divisions that until now have been more or less left
to create their own identity in the marketplace.
What may evolve is that as the new Dassault/IBM relationship
works itself out, (with IBM focusing on 1200 key accounts),
Dassault will give the SolidWorks reseller channel the right to
sell more existing products -- and new products such as 3DLive
and the ICEM line. This could be win-win and a big coup for
SolidWorks resellers.
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