Dassault Systemes boosts software profits, stock takes off Paris (AFP) Jul 27, 2006 French software group Dassault Systemes increased net profit in the second quarter by 14.0 percent, it said on Thursday, sparking an 11.76-percent rise in its share price. Operating profit leapt by 27.0 percent to 70.2 million euros (88.5 million dollars). The stock rose to 40.30 euros also in response to an upgrading of full-year prospects, analysts said. Dassault Systemes reported a net profit in the second quarter of 43.4 million euros, an increase of 14.0 percent on the figure 12 months ago. Sales were boosted by a 35.0-percent increase in sales of software and by recent acquisitions of Abaqus and Matrix One. The company said that it was raising its target for growth of annual sales at constant exchange rates to 27.0-28.0 percent from 25.0-26.0 percent, and raised its forecast for earnings per share to 1.77-1.79 euros from 1.75-1.77 euros previously. In the second quarter, earnings per share were 0.37 euros. Finance director Thibault de Tersant said: "Despite signs of a possible slowing of the economic environment, we think that the second half will be more dynamic than we had expected." But the group would revise its expectations of the exchange rate between the dollar and yen. One stock trader in Paris who declined to be named said: "This company has a habit of providing agreeable surprises and this is the case again: a remarkable performance in a sector of technology which has been rather the cause of disappointment this year." At Global Equities, analysts commented that the quarterly results "are above our expectations and the company's forecasts". In addition "and contrary to our expectations, the company has revised upwards its outlook for growth for 2006, and this is a particularly strong signal given that the prospects for the sector are less clear". Community Email This Article Comment On This Article Related Links All about the technology of space and more
NEC, Matsushita to set up new mobile phone venture Tokyo (AFP) Jul 27, 2006 Japanese firms NEC Corp and Matsushita Electric Industrial Co said Thursday they agreed to set up a new joint venture to develop mobile phone handsets operations. |
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