“The quarter also demonstrated the continued momentum in broadening our reach across major industries, with a strong performance in Transportation & Mobility, High Tech, Consumer Goods-Retail, Consumer Packaged Goods-Retail and Architecture, Engineering & Construction. Benefiting High Tech as well as many of the industries we address, looking for Internet of Experience, we have significantly enhanced our multi-physics, multi-scale simulation applicable for autonomous cars, connected homes, smart wearable devices, medical equipment and other smart objects with the completion of the acquisition of CST, the technology leader in electromagnetic simulation.

“Finally, following the Singapore World City Summit in July where our 3DEXPERIENCity program revealed the value of IoT at the scale of a city, we were pleased to complete a strategic cooperation agreement with Cybernaut Investment Group, a leading Chinese group, focused on helping advance Smart Cities and ‘Made in China 2025’ initiatives.”

• IFRS total revenue increased 9% with total software revenue growth of 9% and services and other revenue growth of 7%. On a non-IFRS basis, total revenue increased 7%, with software revenue increasing 7%, and services and other revenue growing 6%. 3DEXPERIENCE service engagements were a key contributor to the increase in services and other revenue during the third quarter. (All growth rates in constant currencies.)
• On a regional basis, non-IFRS software revenue increased 17% in Asia, led by China and South Korea. In Europe, software revenue growth was 4%, led by France and Southern Europe. In the Americas, software revenue growth of 3% reflected growth in North America offset in part by weaker results in Latin America. The year-ago quarter software revenue growth provided a high comparison base for Americas and Europe. (All growth comparisons are in constant currencies.)
• Non-IFRS new licenses revenue increased 6% in constant currencies led by Transportation & Mobility, High Tech, Consumer Goods-Retail, Consumer Packaged Goods-Retail and Architecture, Engineering & Construction.
• Non-IFRS periodic license, maintenance and other software-related revenue increased 8% in constant currencies, on both strong growth in maintenance subscription revenue as well as growth in rental subscriptions in all three regions.
• By product line and on a non-IFRS basis, CATIA software revenue increased 7%, led by strong growth in China. SOLIDWORKS software revenue increased 14% on broad-based global demand and strong recurring software revenue results. ENOVIA software revenue growth of 9% was driven by 3DEXPERIENCE platform and industry solution experiences representing the large majority of the new sales. Other Software increased 2% on a high base of comparison. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 8%. Non-IFRS operating income increased 10% to €235.3 million and the non-IFRS operating margin expanded 80 basis points to 32.0%. Currency had a net negative impact on the non-IFRS operating margin of approximately 10 basis points.
• During the 2016 third quarter, the IFRS effective tax rate was 28.2% compared to 28.3% in the year-ago period while the non-IFRS effective tax rate was 30.2% compared to 29.9% in the 2015 third quarter. The Company recorded a tax benefit from the filing of tax returns in the 2016 third quarter and a reversal of tax reserves related to the completion of prior years’ tax audits in the year-ago quarter.
• IFRS net income per diluted share increased 7% to €0.44 per share. On a non-IFRS basis, net income per diluted share increased 9% to €0.63 on revenue growth and operating margin expansion. Net income per diluted share (IFRS and non-IFRS) included one-time tax benefits detailed above of 2 cents and 6 cents in the 2016 and 2015 third quarter, respectively. Excluding these tax benefits in both periods, non-IFRS net income per diluted share increased 17%.

• IFRS total revenue increased 7%. Non-IFRS total revenue increased 6%, with software revenue growth of 6% and services and other revenue growth of 3%. (All growth rates in constant currencies.)
• On a regional basis, Asia non-IFRS software revenue increased 8%, with growth significantly higher in China for both new activity and recurring software revenue. In Europe non-IFRS software revenue growth of 6% was led by Southern Europe, well supported by most of the geos. In the Americas, non-IFRS software revenue increased 6% led by sales to SMBs. 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%, led by recurring software revenue which increased 8% and represented 73% of non-IFRS total software revenue. New licenses software revenue increased 3%. (All growth comparisons are in constant currencies.)
• By product line, the strongest results were recorded by ENOVIA and SOLIDWORKS with non-IFRS software revenue growth of 11%. CATIA non-IFRS software revenue increased 4%, and Other Software increased 3% on a non-IFRS basis. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 7%. Non-IFRS operating income increased 8% to €646.2 million and the non-IFRS operating margin expanded 80 basis points to 29.6%.
• IFRS diluted net income per share increased 9%. Non-IFRS diluted net income per share increased 11% to €1.71, compared to €1.54 in the year-ago period. Currency exchange rates had a net negative impact on IFRS and non-IFRS net income per share growth of about 2 percentage points.