“Dassault Systèmes’ full year financial performance was equally strong. New licenses revenue increased 30% in constant currencies, clearly demonstrating the success of the IBM PLM integration, and non-IFRS earnings per diluted share rose 34% with our non-IFRS operating margin reaching 28.6%. These results highlight the broad interest in our product offer with each of our brands delivering double-digit software growth, our progress in industry diversification, with a robust year in high tech and energy in particular, and good growth in automotive and industrial equipment.”

“To date, more than 600 companies have adopted PLM 2 with our Version 6 for many reasons, and key among these, are the attractiveness of its online features, its real-time collaboration capabilities and the creation, management and protection of intellectual property which Version 6 enables. We are expanding into new domains such as embedded system management with Version 6. In this regard, we were pleased to announce today that BMW has selected Version 6 as its new platform for Embedded Systems architecture, integration and design. In fact, our customers tell us that the best way for them to power open collaboration between suppliers and partners, while protecting intellectual property, is PLM 2 with Version 6.”

“In 2011, we plan to drive even more diversification and expansion into all sectors of the global economy through our search-based applications (SBA) and our focus on innovation through communities. And, as our financial objectives indicate, 2011 should be another year of strong performance with double-digit growth in new licenses revenue.”

Dassault Systèmes completed the acquisition of the IBM PLM operations on March 31, 2010 and these operations were merged into the Company’s operations within its PLM business segment for the nine-month period commencing April 1, 2010. Due to the successful integration of former IBM PLM employees into the Company’s operations, involving many changes in sales territories and responsibilities, it is not possible to track the IBM PLM revenue and profit since the acquisition date. As previously disclosed, the IBM PLM share of Dassault Systèmes software revenue was estimated at approximately €53 million in the 2009 fourth quarter and €151 million for the April to December 2009 nine-month period.

• IFRS and non-IFRS total revenue increased 29% and 31%, respectively, principally reflecting software revenue growth of 32% and 33%, respectively (all figures in constant currencies).
• IFRS and non-IFRS new license revenue increased 33% in constant currencies on strong contributions from the Company’s sales channels and brands.
• IFRS and non-IFRS recurring software revenue grew 31% and 33%, respectively, in constant currencies. The growth in recurring software revenue reflected a further improvement in subscription revenue trends and the higher level of new business activity during 2010 compared to 2009. Approximately €11 million of 2010 fourth quarter non-IFRS recurring software revenue related to maintenance reinstatements and other similar one-time adjustments.
• Services and other revenue (IFRS and non-IFRS) contributed to the growth in total revenue increasing 11% in constant currencies.
• IFRS PLM software revenue grew 34% in constant currencies. Non-IFRS PLM software revenue increased 36%, with CATIA software revenue higher by 43%, ENOVIA by 32% and Other PLM by 21% (all figures in constant currencies).
• Mainstream 3D (IFRS and non-IFRS) software revenue increased 22% in constant currencies. New SolidWorks commercial seats licensed increased 22% to 11,983 seats in the fourth quarter.
• While IFRS operating income increased 36% in the fourth quarter, IFRS earnings per diluted share decreased 2% principally reflecting a lower tax rate in the year-ago period related to non-recurring tax benefits. Non-IFRS earnings per diluted share increased 22% to €0.83 principally reflecting a 43% increase in operating income. The IFRS operating margin was 27.0% in the 2010 fourth quarter. The non-IFRS operating margin increased to 33.9% from 32.6% in the 2009 fourth quarter.

• IFRS and non-IFRS total revenue increased 20% and 21%, respectively, on software revenue growth of 23% and 24%, respectively, all figures in constant currencies. The Company saw a positive dynamic in the target industries, and growth in investments by automotive and industrial equipment companies compared to 2009. By geographic region and in constant currencies, Europe represented approximately 45% of total revenues, the Americas 29% and Asia 26%.
• New licenses revenue (IFRS and non-IFRS) increased 30% in constant currencies well supported by the performances of each of the Company’s six brands.
• Recurring software revenue increased 21% (IFRS) and 23% (non-IFRS) in constant currencies and represented approximately 72% of total software revenue in 2010 compared to 73% in 2009.
• Services and other revenue (IFRS and non-IFRS) increased in the second half of 2010 but for the year decreased 3% in constant currencies reflecting the lower software activity in 2009.
• PLM IFRS software revenue increased 26%. PLM non-IFRS software revenue rose 27% with CATIA up 31%, ENOVIA up 29% and Other PLM higher by 16% (all figures in constant currencies).
• Mainstream 3D reported record software revenue of €311.5 million (IFRS and non-IFRS), with new SolidWorks commercial seats licensed up 18% to 42,205 seats, accompanied by strong sales of its product data management and simulation software. Total SolidWorks commercial and educational seats sold surpassed 1.5 million seats at the end of 2010.
• Operating income increased 39.4% to €322.0 million (IFRS) and 44.0% to €451.7 million (non-IFRS). The non-IFRS operating margin was well in line with the Company’s objective, increasing to 28.6% for 2010 compared to 25.0% in 2009, reflecting operating leverage. The operating margin also benefited from currency exchange rates and from the impact of a change in tax law that resulted in the classification as income tax of certain French taxes previously accounted for as operating expenses.
• Net income per diluted share increased 27.3% to €1.82 (IFRS) and 34.4% to €2.50 (non-IFRS) per share on strong operating income growth.