• In constant currencies, IFRS total revenue increased 10% (12.4% as reported) and non-IFRS total revenue increased 11% (13.2% as reported).
• By geographic region and in constant currencies, IFRS revenue in Europe increased 11% (increased 11.6% as reported), the Americas increased 7% (increased 7.2% as reported) and Asia increased 12% (increased 20.8% as reported).
• IFRS PLM software revenue increased 17.2% and 15% in constant currencies and non-IFRS PLM software revenue increased 18.4% and 16% in constant currencies.
• Mainstream 3D (IFRS and non-IFRS) software revenue increased 9.6% and 7% in constant currencies. New SolidWorks commercial seats licensed during the 2010 First Half increased 14% to 19,613 seats.
• IFRS recurring software revenue, comprised of periodic licenses and maintenance revenue, increased 14.2% as reported and 12% in constant currencies. Similarly, non-IFRS recurring software revenue increased 13% in constant currencies to €470.7 million for the 2010 First Half compared to €407.8 million in the prior year period.
• Diluted net income per share increased 56.5% principally reflecting an increase in operating income of 47.1%. Non-IFRS net income per diluted share increased 36.5% to €1.01 per share from €0.74 per share, principally reflecting an increase in non-IFRS operating income of 39.0%.

Cash Flow and Other Financial Highlights

IFRS net operating cash flow was €132.3 million for the 2010 second quarter, up from €81.0 million in the year-ago period. IFRS net operating cash flow was €265.6 million for the first half ended June 30, 2010, compared to €177.3 million for the 2009 First Half. In the second quarter 2010, the Company completed acquisitions totaling €144 million and paid cash dividends aggregating €54.5 million.

The Company’s net financial position, representing cash and short-term investments of €1.02 billion, net of long-term debt of €306.8 million, was €714.1 million, compared to a net financial position of €858.0 million at December 31, 2009.

Annual Shareholders’ Meeting Approved Cash Dividend Payment

The Annual Shareholders’ Meeting was held on May 27, 2010. At the meeting shareholders approved for the fiscal year ended December 31, 2009 the payment of an annual cash dividend equivalent to €0.46 per share, equal to the prior year. The Company has consistently paid annual cash dividends since its initial public offering in 1996. The cash dividend was paid on June 17, 2010.

Summary Business and Corporate Highlights

DS Outlined New Five-Year Financial Objectives at Capital Markets Day, June 15, 2010. DS publicly outlined its growth plan including targeting a 30% non-IFRS margin and the five-year goal to more than double non-IFRS EPS in comparison to 2009.

Dassault Systèmes Acquired Exalead, a France-based company providing Search Platforms and Search-Based Applications (SBA) for consumer and business users. Every month, over 100 million people rely on Exalead for information search, access and reporting, including people in companies like Sanofi-Aventis and World Bank for business use, and Friendster, Lagardère Active and ViaMichelin for contextual consumer search. Exalead provides the industry’s only platform designed from the ground up to apply advanced semantic processing to Web-scale data volumes and usage. Exalead brings unique scalability, agility and usability to industries such as Banking, Retail, Publishing, Business Services, Life Sciences and Consumer Services where easy access to information is essential. The acquisition price was approximately €135 million.

DS Advances Systems Strategy with the Acquisition of Geensoft, a France-based company. Geensoft provides embedded systems development tools and professional services that help engineering teams in the aerospace, automotive, defense, energy, industrial automation, medical and transportation industries to more efficiently manage their engineering processes as well as design, verify and validate their model-based embedded systems applications. With Geensoft, the Company’s V6 portfolio is expanded by adding the capacity to model and generate the entire vehicle control software system, allowing a validation loop by connecting the physical equipment with the digital mock-up. The purchase price was approximately €5.5 million.

The Company launched V6R2011, the latest release of its PLM 2.0 platform as part of its Lifelike Experience strategy. The release includes new advances in collaborative creation with 874 new features, additional collaborative innovation enhancements, as well as an entirely new V6 Academia solution. It includes CATIA advancements in systems functionality and content, such as various automotive-focused Modelica libraries, as well as Lifelike Human and Lifelike Conveyor, two new DELMIA production solutions for enterprise resource modeling. SIMULIA V6R2011 delivers to designers the power of Abaqus technologies for complex assemblies. 3DVIA Composer continues to extend its competitive advantage in 3D lifelike technical publishing experience. V6R2011 also updates Dassault Systèmes’ PLM Express offer with new key attributes for the mid-market. V6R2011 features new capabilities in collaborative innovation, extending the depth of ready-to-use solutions in its eleven target industries, including consumer product goods, fashion, high tech, aerospace & defense, and automotive. These ENOVIA-based solutions deliver a strategic foundation for all communities to participate in the product lifecycle online.