Dassault Systems reports its revenues are down 8% overall, but the really ugly number was the 35% drop in new license revenue. Total revenue for the quarter was e291.7 million, down from 318.3 a year ago. In US$, that's roughly US$437.55 million.
Who's Gonna Be #1?
Releasing the number means we can take a stab at calculating whether Dassault will be the world's largest CAD software company, once it completes the $600-million acquisition of IBM PLM next year.
IBM PLM would contribute an estimated $530 million to Dassault. Let's assume conservatively it earns around US$1.9 billion next year without IBM PLM, or $2.4 billion with IBM PLM.
Autodesk last year earned $2.3 billion, and maybe will do the same next year (after dipping below $2 billion this year). So the acquisition could well put Dassault over the top.
Source.
Was the timing of these two announcements coincidental? I don't think so, see http://alibre.typepad.com/.
Posted by: Paul Grayson | Oct 30, 2009 at 09:19 AM
Paul, you nailed your commentary. Not a single blogger or press person has bothered to understand the implications of the Dassault-IBM split. For those in the know, Dassault was never a sales-oriented company. And of late IBM has been dying to get out of the PLM business - it extracted all it could from this maturing industry. So this 'boon to customers' wasnt exactly planned nuptials.
So what to make of this divorce? simple: IBM = Winner, Dassault = Loser. I predict - nay say with certainty - that Dassault will NEVER integrate the 700 people into its skimpy 'sales' org. The cultural difference is far too great. But you wont see the effect of this 'strategic acquisition' for atleast 4-6 quarters though. But after that - WATCH OUT !!!
Now, who's willing to put down $5 on this scenario playing out?
Posted by: Pundit Knowsall | Oct 30, 2009 at 01:03 PM