“At the time we first introduced our architecture we were perhaps ahead of the market, but it is clear now with the addition of the 3DEXPERIENCE platform that we are precisely where we need to be. And the market is confirming this perspective, with 3DEXPERIENCE momentum increasing thanks to transactions across a number of industries and a wide array of companies, from global leaders to start-ups and small professional firms.

“Dassault Systèmes’ software portfolio now spans a wide spectrum of domains from ideation, modeling, and scientific simulation to production, logistics optimization, and marketing. We are expanding further with the acquisitions of Ortems, extending our global industrial operations software to manufacturing scheduling, and of CST, the technology leader in electromagnetic simulation, significantly enhancing our multi-physics, multi-scale simulation as IoT and smart objects are becoming pervasive in all sectors of the economy and will require new levels of safety and certification processes.”

• IFRS total revenue increased 7% on software revenue growth of 9% offset in part by a decrease in services and other revenue of 2%. Similarly, on a non-IFRS basis, total revenue increased 6%, with software revenue growth of 7%, and services and other revenue decrease of 3%. (All growth rates in constant currencies.)
• On a regional basis, non-IFRS software revenue increased 8% in the Americas on growth in both North America and Latin America, including double-digit new licenses revenue growth. Similarly in Europe, non-IFRS software revenue increased 9% with double-digit new licenses revenue growth, led by Northern and Southern Europe and France. In Asia software revenue growth was more muted at 4%, reflecting mixed results as well as a high base of comparison. (All growth comparisons are in constant currencies.)
• Non-IFRS new licenses revenue increased 6% in constant currencies in the second quarter led by large account activity. 3DEXPERIENCE platform and industry solution sales were up sharply as were sales in Diversification Industries.
• Non-IFRS periodic license, maintenance and other software-related revenue increased 8% in constant currencies, on strong growth in maintenance subscription revenue worldwide and growth in rental subscriptions.
• By product line and on a non-IFRS basis, ENOVIA, SOLIDWORKS and Other Software, delivered double-digit software revenue growth. CATIA software revenue results were in line with Company plans, increasing 1% in the quarter. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 2%. Non-IFRS operating income increased 8% to €229.2 million on both revenue growth and operating margin expansion. Specifically, in the 2016 second quarter the non-IFRS operating margin increased 100 basis points to 30.4%. The Company noted that currency had a net negative impact on the non-IFRS operating margin of approximately 20 basis points.
• IFRS net income per diluted share was €0.39 per share. On a non-IFRS basis, net income per diluted share was €0.57, increasing 8% on revenue growth and operating margin expansion while also reflecting approximately four percentage points from net negative currency effects.

• IFRS total revenue increased 7%. Non-IFRS total revenue increased 5%, with software revenue growth of 6% and services and other revenue growth of 2%. (All growth rates in constant currencies.)
• For the 2016 First Half, Diversification Industries represented approximately 31% of total software revenue, increasing one percentage point in comparison to the 2015 First Half. Strong software revenue growth was recorded in Energy, Process & Utilities, High Tech, and Marine & Offshore, in particular.
• On a regional basis, Americas and Europe posted the strongest software revenue growth increasing 7% and 6%, respectively. Growth in Americas was led by North America. In Europe, growth was delivered by all geos, led by Southern Europe. Software revenue growth in Asia was strongest in China. Total Asia growth of 4% reflected a softer macroeconomic backdrop. Europe represented 42% of non-IFRS total software revenue, Americas 30% and Asia 28%. (All growth rates in constant currencies.)
• Non-IFRS software revenue increased 6%, on strong growth in recurring software revenue. Recurring software revenue represented 72% of non-IFRS total software revenue for the 2016 First Half and was comprised of maintenance subscriptions and rental subscriptions. All sales channels reported a high level of maintenance renewals. New licenses software revenue increased 2%, and reflects a more back-end weighted year of activity anticipated by the Company. (All growth comparisons are in constant currencies.)
• By product line, the strongest results were recorded by ENOVIA with non-IFRS software revenue growth of 12%, followed by SOLIDWORKS with 10% growth. CATIA non-IFRS software revenue increased 3%, and Other Software increased 4%. (All growth comparisons are in constant currencies.)
• The non-IFRS operating margin was 28.4% for the 2016 First Half, increasing 70 basis points compared to 27.7% for the 2015 First Half and well reflecting the Company’s full year improvement target.
• During the 2016 First Half both the IFRS and non-IFRS effective tax rate benefited principally from the reversal of a tax reserve as well as from lower tax rates in key jurisdictions. In combination these factors lowered the effective tax rates to 27.5% from 36.5% (IFRS) and to 31.1% from 35.7% (non-IFRS) in comparison to the 2015 First Half.
• IFRS diluted net income per share increased 10%. Non-IFRS diluted net income per share increased 13% to €1.08 per diluted share, compared to €0.96 per diluted share. Both IFRS and non-IFRS net income per diluted share reflected revenue and operating income growth, as well as lower effective tax rates offset in part by a net negative impact from currencies.