MatrixOne, Inc. Reports Second Quarter Operating Results.Business Editors/High-Tech Writers WESTFORD Westford, town (1990 pop. 16,392), Middlesex co., NE Mass., a suburb of the greater Boston area; settled 1653, set off from Chelmsford and inc. 1729. Although chiefly residential, there are apple orchards, granite quarries (which have long been in operation), and a , Mass.--(BUSINESS WIRE)--Jan. 22, 2003 MatrixOne, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MONE n. 1. The moon. 1. A moan. ), a leading provider of collaborative 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 ) solutions for the value chain(TM), announced today results for its second quarter ended December 28, 2002. For the second quarter ended December 28, 2002, total revenues were $28.0 million, compared to $32.0 million in the same period last year. For the second quarter, net loss was $9.4 million, or $0.20 per share, compared to a net loss of $9.2 million, or $0.20 per share, in the same period last year. For the second quarter, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss, which excludes stock-based compensation and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , was $4.8 million, or $0.10 per share. For the second quarter ended December 29, 2001, pro forma net loss, which excludes stock-based compensation and restructuring charges, was $5.1 million, or $0.11 per share. For the six months ended December 28, 2002, total revenues were $59.1 million, compared to $56.9 million in the same period last year. For the six months ended December 28, 2002, net loss was $15.5 million, or $0.33 per share, compared to a net loss of $21.2 million, or $0.46 per share, in the same period last year. For the six months ended December 28, 2002, pro forma net loss, which excludes stock-based compensation and restructuring charges, was $10.0 million, or $0.21 per share. For the six months ended December 29, 2001, pro forma net loss, which excludes stock-based compensation and restructuring charges, was $16.0 million, or $0.35 per share. "Our operating results this quarter validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the decisive actions we took to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. with today's constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. information technology spending environment," said Mark F. O'Connell, President and Chief Executive Officer of MatrixOne, Inc. "I am confident that these actions, along with our continuing success in securing strategic new customer wins, the expansion of our relationships with key alliance partners, and our unyielding dedication to customer success, will be the fundamental catalysts in the Company's return to growth and profitability." The following milestones were completed or announced since MatrixOne's first quarter earnings release on October 23, 2002: -- MatrixOne continued to see strong adoption of its collaborative PLM solutions across its key target markets. New strategic customer wins during the second quarter of fiscal 2003 included: Cap Gemini Ernst & Young, one of the largest management and IT consulting organizations in the world and a MatrixOne strategic alliance partner; C-COR.net Corp., a global provider of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). products, systems, and services; and SNOP SNOP Società Nazionale Operatori della Prevenzione SNOP Systematized Nomenclature of Pathology , a tier-one automotive supplier. -- During the second quarter of fiscal 2003, a significant number of existing MatrixOne customers extended their MatrixOne PLM implementations to include the MatrixOne Value Chain Portfolio(TM) of applications, continuing an ongoing trend within the MatrixOne customer base. During the second quarter, MatrixOne received major follow-on orders from dozens of existing customers including: BTicino, a division of the Legrand Group, an Italian provider of electric equipment for residential and commercial buildings; GE Industrial Systems, a division of General Electric Company; John Deere, the world's leading producer of equipment for agriculture and forestry; Matsushita Graphic Communication Systems, best known for its Panasonic brand of facsimile machines; and Yamaha, a leader in business ranging from musical instruments and audio and video products to information technology products. -- During the second quarter of fiscal 2003, the Company hosted the MatrixOne 2002 Global Customer Conference in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada, which featured hundreds of customers and alliance partners from around the world and from a cross-section of industries sharing their MatrixOne success stories. These included Advanced Research Labs, Agilent Technologies This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Alcatel Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. Bell, Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar , Cap Gemini Ernst & Young, GE Medical Systems, 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. R&D, Honeywell, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Johnson Controls Johnson Controls, Inc. (NYSE: JCI) is a United States company, based in Milwaukee, Wisconsin, specializing in the design, manufacturing, and installation of automotive systems, automotive batteries (Optima[1] based in Denver, Colorado) and climate control systems. , Motorola, Panasonic, Philips Semiconductors, Procter & Gamble, Siemens Dematic, SUN Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. , Toshiba, and Yazaki Global. Company to Host Live Web Cast The Company's management team will host a live Web cast at 5:30 p.m. Eastern Time today to discuss the financial results and management's forward-looking guidance for the third quarter of fiscal year 2003. For more information, please click on www.matrixone.com/investor. About MatrixOne MatrixOne, Inc. (NASDAQ: MONE) is a recognized leader in delivering collaborative Product Lifecycle Management (PLM) solutions. We provide flexible solutions that unleash the creative power of global value chains to inspire innovations and speed them to market. MatrixOne's customers include global leaders in the aerospace and defense, automotive, consumer products, high technology, life sciences, machinery, and the process industries, and include Agilent Technologies, General Electric, Honda, Johnson Controls, Philips, Procter & Gamble, Siemens, and Toshiba. MatrixOne (www.matrixone.com) is headquartered in Westford, Massachusetts Westford is a town in Middlesex County, Massachusetts, United States. The population was 20,754 at the 2000 census. History Westford was first settled in 1635. Originally a part of neighboring Chelmsford, West Chelmsford soon grew large enough to sustain its own with locations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, and Asia/Pacific. MatrixOne and eMatrix are registered trademarks, and a Leading Provider of Collaborative Product Lifecycle Management (PLM) Solutions for the Value Chain and Value Chain Portfolio are trademarks of MatrixOne, Inc. All other trademarks and service marks are the property of their respective owners. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 -- 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. in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Such statements may relate, among other things, to our growth and profitability prospects, our ability to respond to economic changes and improve operational efficiency, the benefits of our products to be realized by our customers, or our plans, objectives, and expected financial and operating results. Forward-looking statements may also include, without limitation, any statement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or using words such as: will, believe, anticipate, expect, could, may, estimate, project, plan, predict, or intend. The risks and uncertainties that may affect forward-looking statements include, among others: our history of losses and our ability to achieve or maintain profitability; the weak worldwide economic conditions may result in decreased revenues, increased customer credit risk, and higher net losses; the effectiveness of our cost reduction programs; the market may not accept our products; our sales cycle is lengthy and variable; we may be unable to develop new products and services that keep pace with technology; we may be unable to develop and maintain successful relationships with systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and complementary technology vendors; our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. are subject to additional business risks; future acquisitions may adversely affect our operations and financial results; and increased competition may have an adverse effect on pricing, revenues, gross margins and our customer base. For a more detailed discussion of the risks and uncertainties of our business, please refer to our periodic reports and registration statements filed with the Securities and Exchange Commission, including our 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. for the fiscal year ended June 29, 2002 and our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 28, 2002.
MATRIXONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
----------------------- -----------------------
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
2002 2001 2002 2001
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues:
Software license $11,066 $13,429 $24,801 $20,327
Service 16,952 18,598(a) 34,341 36,542(a)
----------- ----------- ----------- -----------
Total revenues 28,018 32,027 59,142 56,869
----------- ----------- ----------- -----------
Cost of Revenues:
Software license 1,104 1,596 2,513 2,299
Service 11,068 13,791(a) 24,578 28,264(a)
----------- ----------- ----------- -----------
Total cost of
revenues 12,172 15,387 27,091 30,563
----------- ----------- ----------- -----------
Gross Profit 15,846 16,640 32,051 26,306
----------- ----------- ----------- -----------
Operating Expenses:
Selling and marketing 11,801 13,547 24,278 26,376
Research and
development 6,581 6,020 13,231 12,170
General and
administrative 2,725 3,066 5,580 5,960
Stock-based
compensation 831 973 1,695 1,961
Restructuring charges 3,800 3,202 3,800 3,202
----------- ----------- ----------- -----------
Total operating
expenses 25,738 26,808 48,584 49,669
----------- ----------- ----------- -----------
Loss from Operations (9,892) (10,168) (16,533) (23,363)
Other Income, Net 508 920 1,007 2,203
----------- ----------- ----------- -----------
Net Loss $(9,384) $(9,248) $(15,526) $(21,160)
=========== =========== =========== ===========
Basic and Diluted Net
Loss Per Share $(0.20) $(0.20) $(0.33) $(0.46)
=========== =========== =========== ===========
Shares Used in Computing
Basic and Diluted Net
Loss per Share 47,451 45,782 47,263 45,605
=========== =========== =========== ===========
Reconciliation of
Pro Forma Net Loss:
Net Loss $(9,384) $(9,248) $(15,526) $(21,160)
Adjustments:
Stock-based
compensation 831 973 1,695 1,961
Restructuring charges 3,800 3,202 3,800 3,202
----------- ----------- ----------- -----------
Pro Forma Net Loss $(4,753) $(5,073) $(10,031) $(15,997)
=========== =========== =========== ===========
Pro Forma Basic and
Diluted Net
Loss Per Share $ (0.10) $ (0.11) $ (0.21) $ (0.35)
=========== =========== =========== ===========
Shares Used in
Computing Pro Forma
Basic and Diluted
Net Loss Per Share 47,451 45,782 47,263 45,605
=========== =========== =========== ===========
(a) Service revenues for the three and six months ended December 29,
2001 have been restated to include reimbursements received for
out-of-pocket expenses incurred, which were previously reported as
a reduction in cost of service revenues. Reimbursements received
for out-of-pocket expenses incurred were $732 and $907 for the
three months ended December 28, 2002 and December 29, 2001,
respectively, and $1,617 and $1,909 for the six months ended
December 28, 2002 and December 29, 2001, respectively.
MATRIXONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 28, June 29,
2002 2002
----------- ----------
(unaudited)
ASSETS
Current Assets:
Cash and equivalents $131,641 $139,642
Accounts receivable, net 27,318 35,794
Prepaid expenses and other current assets 7,663 8,039
----------- ----------
Total current assets 166,622 183,475
Property and Equipment, Net 13,904 14,784
Other Assets 2,486 2,689
----------- ----------
$183,012 $200,948
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $8,083 $10,583
Accrued expenses 20,375 20,663
Deferred revenues 17,991 20,612
----------- ----------
Total current liabilities 46,449 51,858
----------- ----------
Stockholders' Equity:
Common stock 477 470
Additional paid-in capital 211,472 210,788
Deferred stock-based consideration (2,111) (3,898)
Accumulated deficit (74,211) (58,685)
Accumulated other comprehensive income 936 415
----------- ----------
Total stockholders' equity 136,563 149,090
----------- ----------
$183,012 $200,948
=========== ==========
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