MSC.Software Reports 53 Percent Fourth Quarter Revenue Growth; Revenue Growth for the Year Was 33 Percent.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--March 6, 2002 MSC (1) (MSC.Software Corporation, Santa Ana, CA, www.mscsoftware.com) Founded in 1963 by Richard H. MacNeal and Robert G. Schwendler, MSC is the world's largest provider of mechanical computer aided engineering (MCAE) strategies, simulation software and services. .Software Corp. (NYSE NYSE See: New York Stock Exchange :MNS MNS Minutes MNS Maharashtra Navnirman Sena MNS Malaysian Nature Society MNS Mass Notification System MNS Mirror Neuron System MNS Metis Nation of Saskatchewan MNS mission needs statement (US DoD) MNS Maître Nageur Sauveteur ), the leading global provider of simulation software Simulation software is based on the process of imitating a real phenomenon with a set of mathematical formulas. It is, essentially, a program that allows the user to observe an operation through simulation without actually running the program. , services and systems, helping companies develop better products faster as part of their Product Lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. Management (PLM (Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design ) implementation, today announced financial results for the fourth quarter and fiscal year ended December December: see month. 31, 2001. Fourth quarter highlights include: -- FY 2001 revenues grew to $236.1 million, up 33 percent over last year; -- FY 2001 net income, excluding goodwill amortization and restructuring costs, of $16.9 million or $0.77 per diluted share; -- Key balance sheet items include $89.5 million in cash and investments, $35 million in debt and $277 million in shareholders' equity; -- Outstanding shares grew to 29 million as of December 31, 2001, from 14 million as of December 31, 2000. Fiscal year highlights: -- FY 2001 revenues grew to $236.1 million, up 33 percent over last year; -- FY 2001 net income, excluding goodwill amortization and restructuring costs, of $16.9 million or $0.77 per diluted share; -- Key balance sheet items include $89.5 million in cash and investments, $35 million in debt and $277 million in shareholders' equity; -- Outstanding shares grew to 29 million as of December 31, 2001, from 14 million as of December 31, 2000. MSC.Software's conference call to discuss the fourth quarter and year end results will be webcast live today at 8:30 a.m. Pacific (11:30 a.m. Eastern) at the Company's website at http://www.mscsoftware.com/ir. It can also be accessed through the following toll-free dial-in numbers: U.S. - (800) 374-0151 or Intl. - (706) 634-4981, referencing MSC.Software. An archived version of the conference call will also be available at the Company's website. "Our simulation software, service and systems products continue to provide quantifiable Quantifiable Can be expressed as a number. The results of quantifiable psychological tests can be translated into numerical values, or scores. Mentioned in: Psychological Tests and meaningful return on investment for our customers, allowing us to execute on our strategy and see very positive shareholder returns and revenue and earnings growth," said Frank Perna, Jr., chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , MSC.Software Corp. "Current economic conditions and competitive pressures are continuing to drive demand for digital technologies that help companies save time and reduce costs. Our customers are finding significant value in our integrated software Separate software components or applications that have been combined into one package. See integrated software package. , services and systems offerings, which prove integral to driving PLM efficiencies within their organizations. "The core MSC.Software business of software sales was very strong in 2001. Our services business continues to show strong growth prospects in all world regions. And our enterprise systems business is continuing to find success selling integrated solutions both into our core customer base as well as into new markets. Sales of MSC.Software's products and services via our web-based engineering-e.com web store continued to grow in the fourth quarter, indicating continued market acceptance of our e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. strategy." For the fourth quarter ended December 31, 2001, MSC.Software reported revenue of $80.1 million, an increase of 53 percent over reported revenue of $52.2 million for the fourth quarter last year. Net income, excluding goodwill amortization, for the fourth quarter was $7.6 million compared with $6.9 million in the fourth quarter last year, an increase of 11 percent. Earnings per share, excluding goodwill amortization was $0.25 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with $0.42 per diluted share in the fourth quarter last year. Reported net income, including amortization of goodwill, was $6.3 million or $0.21 per diluted share, compared with $5.5 million, or $0.34 per diluted share in the fourth quarter last year. The decline in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is primarily attributable to the growth in the diluted weighted-average shares outstanding from 18.4 million in the fourth quarter 2000 to 30.3 million in the fourth quarter 2001. For the fiscal year ended December 31, 2001, MSC.Software reported revenue of $236.1 million compared to $178.0 million of reported revenue in fiscal 2000, an increase of 33 percent. Net income, excluding goodwill amortization and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs, for the fiscal year 2001 was $16.9 million or $0.77 per diluted share, compared with $16.7 million or $1.07 per diluted share for the fiscal year ended 2000. Reported net income, including goodwill amortization and restructuring costs, was $10.3 million or $0.47 per diluted share in fiscal 2001, compared with $11.1 million or $0.76 per diluted share in fiscal 2000. The diluted weighted-average shares outstanding have increased from 14.6 million in FY 2000 to 21.9 million in FY 2001. Americas A·mer·i·cas , the See America. The Americas enjoyed tremendous growth with revenue increasing 98 percent to $42.2 million in the fourth quarter versus the fourth quarter last year. Revenue increased 52 percent to $116.2 million for the fiscal year ended December 31, 2001. In the Americas, 43 deals over $100,000 were signed in the fourth quarter, and the total number of new accounts increased by 88 new names. Key software business was completed with United Technologies, Conoco, Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. , and Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, . Key services engagements were completed or are ongoing with customers including Cooper Tire, Alliance Aircraft and TI Group. Key enterprise systems sales were inked with important U.S. customers including Amgen, G.E., Kelly Services Kelly Services, Inc. is a Fortune 500 company headquartered in Troy, Michigan, offering staffing solutions that include temporary staffing services, outsourcing, vendor on-site and full-time placement. Kelly operates in 30 countries and territories. and Constellation Energy Constellation Energy (NYSE: CEG), headquartered in Baltimore, Maryland, generates, trades, supplies, and distributes energy. The company operates over 35 power plants in 11 states (mainly Maryland, Pennsylvania, New York, West Virginia, and California) under its operating . New incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue associated with the Joint Strike Fighter program The Joint Strike Fighter (JSF) became synonymous with the later F-35 Lightning II, however until 2001 the term was applied to the competition between the Boeing X-32 and Lockheed Martin X-35. was recognized in the fourth quarter. MSC.Software's products and services are well positioned within this important long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. defense program. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). MSC.Software's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations enjoyed solid growth across all key industries with revenues increasing 28 percent to $21.7 million in the fourth quarter versus the fourth quarter last year, and increasing 21 percent to $63.4 million in fiscal 2001. Total number of new accounts increased by 84 and the number of transactions over $100,000 totaled 31 in the fourth quarter. The software business activities were strong at a number of European accounts including Rolls Royce Rolls Royce the millionaire’s vehicle. [Trademarks: Brewer Dictionary, 928] See : Luxury , Lloyds Register and Airbus. The service element of the business continued to be active, with significant increases in revenue across Europe, especially at accounts including Fairchild Companies named Fairchild include:
in full Bayerische Motoren Werke AG German automaker. Founded as an aircraft engine manufacturer in 1916, the company assumed the name Bayerische Motoren Werke and became known for its high-speed motorcycles in the 1920s. . Asia-Pacific The Asia-Pacific region continued to grow as an important market for MSC.Software, with revenues increasing 16 percent to $16.2 million in the fourth quarter, and increasing 15 percent to $56.5 million in fiscal 2001. The total number of new customer accounts increased by 59 new account names. In total 26 transactions over $100,000 were signed in the region in the fourth quarter. Key business opportunities succeeded with companies including Sharp, Mitsubishi, Honda honda a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required it is not necessary to slacken off the loop and pull it over the head—a very great advantage when working with wild cattle or unbroken horses. , Mitsui and Toyota. Outlook Based on current visibility, the Company expects first quarter revenue and earnings to be within the current consensus estimates, and the Company expects fiscal year 2002 revenue and earnings to be within the current consensus estimates. About MSC.Software MSC.Software (NYSE:MNS) is the leading global provider of simulation software, with related services and systems, that helps companies make money, save time and reduce costs associated with designing and testing manufactured products. MSC.Software works with thousands of companies in hundreds of industries to develop better products faster by utilizing information technology, software, services and systems. MSC.Software employs more than 1,200 people in 22 countries. For additional information about MSC.Software's products and services, please visit www.mscsoftware.com. Except for the historical information contained herein, certain matters discussed in this news release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that could cause actual results to differ materially from those projected. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Other factors which could cause such results to differ materially from those described in the forward-looking statements include delays in developing, completing, or shipping new or enhanced products, the ability to assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. acquisitions into MSC's operations, foreign currency translations, and other risks and uncertainties that are detailed in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other reports filed by the Company with the Securities and Exchange Commission.
MSC.SOFTWARE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Amounts)
Three Months Ended Years Ended
December 31, December 31,
--------------------- ---------------------
2001 2000 2001 2000
--------- --------- --------- ---------
(Unaudited) (Unaudited)
REVENUE:
Software $ 51,437 $ 38,562 $ 150,342 $ 129,746
Services 16,352 13,633 59,224 48,278
Systems 12,327 -- 26,531 --
--------- --------- --------- ---------
Total Revenue 80,116 52,195 236,097 178,024
--------- --------- --------- ---------
COST OF REVENUE:
Software 7,880 6,683 26,193 22,648
Services 9,901 5,790 33,292 22,205
Systems 10,755 -- 22,125 --
--------- --------- --------- ---------
Total Cost
of Revenue 28,536 12,473 81,610 44,853
--------- --------- --------- ---------
GROSS PROFIT 51,580 39,722 154,487 133,171
--------- --------- --------- ---------
OPERATING EXPENSE:
Research and
Development 5,729 3,668 22,068 16,656
Selling, General
and Administrative 32,655 23,693 99,253 82,325
Restructuring -- -- 1,894 --
Amortization of
Goodwill and Other
Intangibles 2,703 2,822 10,878 11,049
--------- --------- --------- ---------
Total Operating
Expense 41,087 30,183 134,093 110,030
--------- --------- --------- ---------
OPERATING INCOME 10,493 9,539 20,394 23,141
--------- --------- --------- ---------
OTHER EXPENSE (INCOME)
Interest Expense 625 1,646 5,239 6,679
Other Expense
(Income), Net (330) 391 (1,704) (106)
--------- --------- --------- ---------
Total Other
Expense, Net 295 2,037 3,535 6,573
--------- --------- --------- ---------
INCOME BEFORE PROVISION
FOR INCOME TAXES 10,198 7,502 16,859 16,568
Provision for
Income Taxes 3,938 2,041 6,588 5,435
--------- --------- --------- ---------
NET INCOME $ 6,260 $ 5,461 $ 10,271 $ 11,133
========= ========= ========= =========
BASIC EARNINGS
PER SHARE $ 0.22 $ 0.39 $ 0.50 $ 0.79
========= ========= ========= =========
DILUTED EARNINGS
PER SHARE $ 0.21 $ 0.34 $ 0.47 $ 0.76
========= ========= ========= =========
Basic Weighted-Average
Shares Outstanding 28,569 14,129 20,606 14,025
========= ========= ========= =========
Diluted Weighted-Average
Shares Outstanding 30,322 18,380 21,900 14,614
========= ========= ========= =========
---------------------------------------------------------------------
PRO FORMA RESULTS
(EXCLUDING AMORTIZATION
OF GOODWILL AND RESTRUCTURING)
------------------------------
OPERATING INCOME $ 11,875 $ 10,987 $ 27,737 $ 28,687
NET INCOME $ 7,642 $ 6,909 $ 16,876 $ 16,679
BASIC EARNINGS
PER SHARE $ 0.27 $ 0.49 $ 0.82 $ 1.19
DILUTED EARNINGS
PER SHARE $ 0.25 $ 0.42 $ 0.77 $ 1.07
----------------------------------------------------------------------
MSC.SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
December 31, December 31,
2001 2000
------------ ------------
(Unaudited)
ASSETS
------
Cash and Investments $ 89,540 $ 30,659
Trade Accounts Receivable, Net 82,276 45,950
Other Current Assets 29,081 25,855
-------- --------
Total Current Assets 200,897 102,464
Property and Equipment, Net 31,209 15,040
Goodwill and Other Intangible Assets, Net 173,355 63,431
Capitalized Software Costs, Net 25,952 23,704
Other Assets 5,139 4,015
-------- --------
Total Assets $436,552 $208,654
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Accounts Payable $ 22,289 $ 5,575
Restructuring Reserve 1,404 1,340
Deferred Revenue 48,578 38,671
Other Current Liabilities 36,808 39,523
-------- --------
Total Current Liabilities 109,079 85,109
Deferred Income Taxes 17,137 16,344
Convertible Subordinated Debentures, Net -- 58,345
Subordinated Notes Payable, Less Current Portion 33,363 8,874
-------- --------
Total Liabilities 159,579 168,672
Total Shareholders' Equity 276,973 39,982
-------- --------
Total Liabilities and Shareholders' Equity $436,552 $208,654
======== ========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion