Net operating cash flow was €78.4 million in the fourth quarter and €506.8 million in 2013. The decrease in net operating cash flow in 2013 compared to 2012 principally reflected significant improvements in accounts receivables management processes in 2012 and higher tax down-payments in 2013. IFRS net income adjusted for non-cash items increased in about 4% in 2013 and unearned revenue in constant currencies and excluding acquisitions increased 6%.
During 2013 the Company completed cash acquisitions of €213.4 million, net of cash acquired; disbursed cash dividends of €34.8 million (shareholders selecting the option of receiving dividend in shares accounts for the lower disbursements in comparison to 2012, as the Company increased the dividend level by 14%); entered into and fully drew down a new €350 million credit facility; made additions to property, equipment and intangibles of €42.4 million and received cash of €40.2 million for stock options exercised and completed share repurchases in the amount of €57.0 million.
At December 31, 2013, the net financial position was €1.44 billion, compared to 1.28 billion at December 31, 2012. Cash, cash equivalents and short-term investments totaled €1.80 billion and long-term debt was €360.0 million, compared to €1.32 billion and €38.3 million, respectively at December 31, 2012.
Summary of Recent Business, Technology and Corporate Highlights
Dassault Systèmes announces 3DEXPERIENCE R2014x following the successful completion of its six-month lighthouse program with select customers. In a separate press release issued today, Dassault Systèmes announced 3DEXPERIENCE R2014x, the first release of its new 3DEXPERIENCE platform, with on premise and on the cloud industry solution experiences and processes; with an entirely new user experience, powerful but easy to use capabilities for business dashboarding and intelligent big data search and analysis; and a simplified product packaging aligned to industries.
Dassault Systèmes Introduces the First SOLIDWORKS Application on the 3DEXPERIENCE Platform - SOLIDWORKS Mechanical Conceptual, a new conceptual, instinctive, social, connected design application introduced at SOLIDWORKS World 2014. Complementary to the current and continuing version of the industry-leading 3D design software, SOLIDWORKS Mechanical Conceptual combines best-in-class design technology from Dassault Systèmes with SOLIDWORKS’ familiar, easy-to-use interface. This helps to simplify and streamline conceptual mechanical design, allowing users to develop, confirm and choose the best concepts to engage customers and win business.
Dassault Systèmes and Accelrys to Join Forces. On January 30, 2014 Dassault Systèmes and Accelrys, Inc., (NASDAQ: ACCL), a leading provider of scientific innovation lifecycle management software for chemistry, biology and materials, announced the signing of a definitive merger agreement for Dassault Systèmes to acquire San Diego-based Accelrys, Inc. Combining with Accelrys will enrich the molecular chemistry capabilities from discovery to manufacturing and regulatory of Dassault Systèmes’ formulation-based industry offerings. Accelrys’ list of 2,000 customers includes many of the Fortune 500 companies, with major industry players in pharma/biotech, consumer packaged goods and chemical including Sanofi, Pfizer, GSK, AstraZeneca, Du Pont, Shell, BASF, P&G, Unilever and L’Oréal. Under the terms and conditions of the merger agreement, Dassault Systèmes will make an all cash tender offer for all of the outstanding shares of Accelrys common stock at a price of $12.50 per share, without interest, representing a fully diluted equity value of approximately $750 million. Following closing of the tender offer, Dassault Systèmes intends to complete the acquisition of the remaining shares of Accelrys through a merger. The Company expects to file the offer to purchase and related documents with the SEC and commence the tender offer by February 13, 2014.
Dassault Systèmes Completes Acquisition of Real-time Technology AG (RTT), the leading provider of professional high-end 3D visualization software, marketing solutions and computer generated imagery services, benefiting from the development of the fast-growing market for digital marketing. The acquisition of Munich-based RTT includes its software division, known for its DeltaGen, PictureBook, POS Configurator and other solutions, and its marketing consulting services, as well as its subsidiary, Bunkspeed, with its line of powerful and intuitive rendering software. RTT’s list of customers includes Hugo Boss, adidas, Airbus, Audi, BMW, Daimler, Electrolux, Eurocopter, Ferrari, General Motors, Harley-Davidson, Nissan, Porsche, The North Face, Toyota and Volkswagen.
Dassault Systèmes Ranked Fifth in Global 100 Index of the World’s Most Sustainable Corporations. Now in its tenth year, the Global 100 index is recognized as the gold standard in corporate sustainability analysis. Companies ranked in the Global 100 index are the top overall sustainability performers in their respective industrial sectors – and the 2014 rankings place Dassault Systèmes in the fifth position out of all the companies evaluated.
Thibault de Tersant, Senior Executive Vice President, CFO, commented, “While fourth quarter revenue, operating margin and earnings per share were in line with our objectives, converting pipeline opportunities into new business activity remained difficult, leading to total revenue growth of 5% in constant currencies for the fourth quarter and year in total.
“For the first quarter of 2014, we think it is appropriate to assume
continuation of the 2013 trend-line, with our growth drivers entering
into play progressively over the course of the quarter, leading to a
revenue objective range of €490 to €500 million and non-IFRS earnings
per share range of €0.60 to €0.65, reflective of a higher effective tax
rate and strong currency headwinds.