Skip to content
Subscriber Only

Dassault Systemes Plunges on Shortfall

The French company, the world leader in 3D software, didn't meet expectations, but blamed a weak dollar and a former partnership with IBM

Shares in pioneering French software company Dassault Systèmes (DASTY) tumbled as much as 14% in Paris trading on Feb. 13, to €32.50 ($47.45)—their biggest decline in five years—after the company reported higher revenues and profits for 2007, but fell short of analyst expectations. Investors were especially worried by a weak fourth quarter and decline in profit margins. Dassault Systèmes shares ended the day down 3.7%, at €36.40 ($53.14).

The world leader in 3D design and engineering software, Dassault Systèmes posted revenues of $541 million in the quarter ended Dec. 31, 2007, up 5.1% from the same period a year earlier, on a non-GAAP basis. (Non-GAAP, or generally accepted accounting principles, exclude acquisition and stock-option costs and do not meet U.S. accounting practices.) Fourth-quarter GAAP revenues totaled $529.4 million, a year-on-year increase of 4%. For the year, revenues grew 8%, to $1.86 billion.