Dassault Systèmes Increases Estimates For 2021 As License Sales Rise

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October 28 (Reuters) РFrench technology and software company Dassault Syst̬mes (DAST.PA) on Thursday raised its outlook for 2021 for the third time this year, citing strong license sales and a resumption of manufacturing, in particular in the automotive and aerospace sectors.

The technology solutions company now expects non-IFRS revenue of € 4.80 billion to € 4.83 billion ($ 5.57 billion to $ 5.61 billion), boosting its earnings per share (EPS ) to 0.94 to 0.95 euro. He had previously guided for revenues of 4.75 to 4.79 billion euros and earnings per share of 0.89 to 0.91 euros.

Sales of proprietary software distributed under a license agreement increased 24% in the third quarter, pushing sales up 12% to 1.16 billion euros, above the group’s forecast of 1, 14 billion euros.

CFO Pascal Daloz highlighted the improvement in the manufacturing sector which struggled earlier during the pandemic, noting that activity in the automotive and aerospace sectors grew by more than 10% in the quarter.

“This was not the case at the start of the year,” Daloz told reporters.

The maker of 3DExperience, a software platform on which companies digitally design and develop their products, has also seen its cloud business grow as customers continue to accelerate their transition to online storage.

“A large number of large customers, like Renault (RENA.PA), are choosing the cloud, which was not really the case before the pandemic, we have seen changes in behavior,” added Daloz.

Shares of Dassault Systèmes, whose core business of manufacturing industries helps design airplanes and cars as well as consumer goods, have increased by about 115% since the start of the pandemic in March 2020.

($ 1 = 0.8617 euros)

Report by Kate Entringer in Gdansk Editing by Tomasz Janowski

Our standards: Thomson Reuters Trust Principles.


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