French software maker Dassault Systemes warned on October 14 that revenue growth will be sharply lower than expected this year, citing sluggish orders, especially in Asia. The company said it had suffered from lengthening investment decisions and that a portion of its clients had chosen to rent rather than buy software licences, bringing in less short-term revenue than expected.
Chief Financial Officer Thibault de Tersant told reporters on a call that the company now expected full-year revenue to rise by 4-5 percent, down from the 7-8 percent forecast in July.
The company, which is due to publish detailed results on October 24, said that quarterly revenue was 496 million euros ($672.7 million), against its target of 520 million euros, while earnings per share were down 1 percent year on year at 0.88 euros.
In constant currencies, revenue grew 4 percent year on year, while the company had expected growth of 8-9 percent. Revenue rose by only 2 percent in Asia, 1 percent in the Americas and 7 percent in Europe.
The company lowered its fourth-quarter revenue target by about 20 million euros to at least 565 million euros.
It forecast quarterly earnings per share of 0.97 euros, down from the 1.03 euros previously expected, and an operating margin of 34 percent, against 34.5 percent previously.
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