Dassault Systemes' Underlying Strength Shines Through
Engineering design software company Dassault Systemes (NASDAQOTH: DASTY) reported a mixed set of third-quarter results. The underlying earnings are strong and the company is strategically setting itself up for long-term growth with its new licenses sales and exciting deals with large companies like Boeing and Scania. However, there was some near-term weakness in services revenue, and management was forced to lower full-year margin and earnings expectations due to adverse currency movements. Let's take a closer look at the quarter.
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France-based Dassault reports in euros using International Financial Reporting Standards (IFRS) and non-IFRS accounting (equivalent to how U.S. companies report GAAP and non-GAAP numbers) but generates around 58% of its revenue outside Europe. In other words, its revenue and earnings are moved by changes in currency -- a particularly relevant point in this quarter's earnings and guidance.
Source: Fool.com
