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Dassault margins fall
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April 24, 2001: 11:53 a.m. ET
Engineering software maker says flat profits reflect higher costs
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LONDON (CNN) - Dassault Systemes, the French engineering software maker, posted flat first-quarter profit on Tuesday and a decline in operating margin.
The company, which makes software for the design of parts of Boeing planes, Saab cars, to Black & Decker power tools, said first-quarter net profit, excluding acquisition costs, came in at  29.9 million ($26.9 million).
That compares with 29.5 million in the same period in 2000. Dassault said earnings per share for the three months ended March 31 were 0.25.
Sales rose 23 percent to 165.1 million, from 134.7 million in the year-earlier quarter, with software sales accounting for 88 percent of sales.
But operating margins fell to 27 percent, from 33 percent, with operating profit at 44.6 million, compared with 44.4 million a year earlier. Operating margin, a measure of a company's underlying profitability, is calculated as operating profit as a percentage of sales.
Dassault Systemes said the results reflect higher investment in research and development and marketing, as well as currency fluctuations.
Thibault de Tersant, Dassault Systemes executive vice president, said that the software maker expects to meet its target of 750 million sales in 2001 and earnings per share of 1.33, but that slower economic growth in Europe could hit the company.
"Significant currency fluctuations or further weakening of the economic environment, particularly in Europe, could have a negative impact," de Tersant said.
Dassault (PDSY) shares were down 3.5 percent at 52.60 in midday Paris trade.
Acquisition costs, including goodwill and amortisation, totalled 12.7 million in the first quarter. 
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