Dassault Systemes on rise

July 24, 2001 Posted: 0759 GMT

LONDON (CNN) -- French engineering software maker Dassault Systemes said on Tuesday second-quarter net income edged up 4 percent as it cut a full-year forecast.

Dassault Systemes said second-quarter net profit to June 30 rose to 31 million, or 0.27 per share, from 29.7 million, or 0.25 per share, in the same three months of 2000.

Aircraft and car makers, such as Airbus and DaimlerChrysler, use the company's 3-D product modeling software to create and test digital designs before they are actually manufactured.

Formula One motor racing teams also use the software to design chassis and other parts.

Dassault Systemes said sales for the quarter rose 21 percent to 176.9 million from 145.8 million a year ago.

Software licensing revenue, accounting for 86 percent of total revenue in the quarter, rose 20 percent to 151.3 million from 126 million in the same quarter of 2000. Companies with licensing income can often better cope with economic downturns as they do not have to rely on raw sales.

However, Dassault Systemes said it was adjusting its full-year 2001 earnings per share forecast in the light of a weaker economic outlook and the impact of foreign exchange rates.

Earnings per share would be between 1.25 and 1.28 after a previous forecast of 1.33, the company said.

"This revision simply reflects a more conservative stance on our part in light of overall global economic conditions and the impact of currency fluctuations on our expenses, and does not reflect any particular trends we are observing in our business," said Dassault Executive Vice President Thibault de Tersant.

Dassault Systemes (PDSY) shares closed up almost 2 percent on Monday at 40.4, above their July 5 year-low of 36.95.

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