By Mauro Orru

Dassault Systemes SE said Thursday that operating profit for the second quarter of 2020 fell while revenue increased thanks to recurring software revenue and following the acquisition of Medidata.

Reporting non-IFRS figures, the French software maker said operating profit for the quarter fell to 286.2 million euros ($331.2 million) from EUR296.2 million for the second quarter of 2019, while operating margin dropped to 26.7% from 30.7%.

Net profit shrank to EUR211.4 million from EUR214 million.

The company posted revenue of EUR1.07 billion compared with EUR965.4 million the previous second quarter, with software revenue climbing to EUR960.5 million from EUR851 million and services revenue falling slightly to EUR110.1 million from EUR114.4 million.

Dassault Systemes said in April it expected revenue between EUR1.04 billion and EUR1.07 billion for the second quarter, with operating margin between 25% and 26.5%.

The company now expects revenue for the third quarter of between EUR1.05 billion and EUR1.08 billion, with an operating margin between 26% and 26.5%.

For 2020, revenue should be between EUR4.51 billion and EUR4.56 billion, with operating margin between 29.3% and 29.4%, it said.

"We delivered second quarter financial results well in line, with key non-IFRS figures - software and recurring software revenue growth, operating margin and earnings per share - at the high end of or slightly above our objectives," Pascal Daloz, chief operating officer and chief financial officer, said. 



  Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94