Mobius Management Systems, Inc. Reports Results for Fiscal Fourth Quarter and Year-End 2006.RYE, N.Y. -- FY06 Net Income of $2.1 Million, or $0.10 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, and Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $594,000 Results from a Nearly 27% Increase in Software License Revenues and Cost Containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. Efforts Mobius Management Systems, Inc. (Nasdaq: MOBI MOBI Mobile (Internet Top Level Domain) MOBI Molecular Orbital Bond Index MOBI Microgravity Observations of Bubble Interaction MOBI Model Based Interface MOBI Object Intelligent Model MOBI Message Oriented Broker Interface ), a leading provider of integrated solutions for content and records management, today announced results for its year-end and fiscal fourth quarter 2006. Operating income for the fiscal year ended June 30, 2006 was $594,000, which compares to the prior year's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $8.1 million. Net income for the 2006 fiscal year was $2.1 million, or $0.10 per diluted share, as compared with a net loss of $2.7 million, or $(0.15) per share, for 2005. Software license revenues for the fiscal year ended June 30, 2006 were $39.2 million, an increase of 26.8% over the prior year's license revenue of $30.9 million. Total consolidated revenues for the 2006 fiscal year increased 14.9% to $89.2 million, compared with $77.7 million in fiscal year 2005. As of June 30, 2006, cash totaled $40.0 million, an increase of $6.3 million over cash balances of $33.7 million at June 30, 2005. The Company had no bank debt outstanding at June 30, 2006. Operating income for the fiscal fourth quarter ended June 30, 2006 was $1.3 million, a $1.1 million increase over operating income of $169,000 during the prior year period. Net income for the fiscal fourth quarter of 2006 was $1.2 million, or $0.06 per diluted share, as compared to $615,000, or $0.03 per diluted share, in last year's fourth quarter. Software license revenues for the fiscal fourth quarter of 2006 were $11.5 million, an increase of 4.4% over last year's fourth quarter of $11.1 million. Total consolidated revenues for the fiscal fourth quarter ended June 30, 2006, increased 5.8% to $24.4 million, compared with $23.1 million for the same period last year. The Company's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the fiscal year and fourth quarter ended June 30, 2006, have been reduced by pre-tax expenses of approximately $855,000, or $0.04 per share, and $242,000, or $0.01 per share, respectively, for stock-based compensation expense recognized pursuant to the provisions of the Financial Accounting Standards Board's Statement No. 123 (revised 2004), "Share-Based Payment" (FAS 123R). Mobius adopted FAS 123R as of July 1, 2005. For the fiscal year and fourth quarter ended June 30, 2005, the Company's operating earnings were reduced by a pre-tax charge of $250,000, or $0.01 per share, related to the accelerated vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of certain employee stock options. Commenting on the results, Mitch Gross, President 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. of Mobius, said, "The completion of another successful quarter wraps up a very satisfying year for Mobius. We have rebounded strongly from a difficult 2005 by judiciously ju·di·cious adj. Having or exhibiting sound judgment; prudent. [From French judicieux, from Latin i containing costs while substantially increasing our software license revenue. We have also achieved various internal goals that we believe have set the stage for growth in fiscal 2007 and beyond. In addition to solid increases in revenue and profitability in fiscal 2006, some of these accomplishments include: --1 Developed a dedicated and cohesive cohesive, n the capability to cohere or stick together to form a mass. senior management team focused on the implementation and execution of corporate strategies to enhance every facet facet /fac·et/ (fas´it) a small plane surface on a hard body, as on a bone. fac·et n. 1. A small smooth area on a bone or other firm structure. 2. of Mobius's performance and increase shareholder value; --2 Added James Biggs as Vice President of Channel Sales and Marketing to build the Company's channel sales program; --3 Improved effectiveness of our sales and marketing efforts as a result of the introduction of new processes and initiatives; --4 Obtained positive market reception for our newer product offerings; --5 Increased cash balances by more than $6.0 million; and --6 Delivered consistent results which met our revenue and earnings guidance each quarter. "Our performance for the fiscal year just concluded was driven primarily by gains in software license revenues as a result of adding a number of important new clients, as well as deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound our relationship with a number of existing clients. In addition, we benefited from enhancements in productivity and efficiency as a result of new approaches in our sales and marketing efforts." Mitch Gross continued, "As we mark our 25th anniversary this year, Mobius is well positioned for the future with a diversified diversified (di·verˑ·s software suite providing customers with much needed solutions for compliance, information integration across the enterprise and applications that automate To turn a set of manual steps into an operation that goes by itself. See automation. critical business processes. In addition to our innovative technology and a blue-chip customer base of more than 1,000 leading companies worldwide representing a variety of industries, we have very talented and highly dedicated employees. Leveraging these assets, we will continue to maximize the potential of our core products and accelerate revenue growth with our newer offerings. We look forward to greater success in the next 25 years." Guidance In conclusion, Mr. Gross noted, "Looking ahead to the first fiscal quarter of 2007, typically the most seasonally challenging quarter of the year, our current forecast calls for revenue to be between $22.5 million and $23.5 million, which would result in earnings per diluted share of between $0.01 and $0.03. Included in the earnings forecast is a pre-tax non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of approximately $250,000, or $0.01 per share, related to stock-based compensation." Recent Highlights Mobius Positioned in 'Leaders' Quadrant quadrant, in analytic geometry quadrant. 1 In analytic geometry, one of the four regions of the plane determined by two lines, the x-axis and the y-axis. of Integrated Document Archive and Retrieval Systems: Mobius announced that it has been positioned in the leaders' quadrant in industry analyst Gartner, Inc.'s Magic Quadrant The Gartner Magic Quadrant is a proprietary research tool developed by Gartner Inc., a US based research and advisory firm. It is designed to provide an unbiased qualitative analysis of a “markets’ direction, maturity, and participants. for the integrated document archive and retrieval systems (IDARS IDARS Integrated Document Archive and Retrieval System ) market. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gartner, leaders have the most comprehensive and scalable products, as well as a proven track record of financial performance and continued customer and revenue growth. Mobius Names Mark P. Cattini and James A. Perakis to Board of Directors: Mobius announced that Mark P. Cattini, President and Chief Executive Officer of MapInfo Corporation (Nasdaq: MAPS), and James A. Perakis, former Chairman and CEO of Hyperion Software and current Chairman of Netkey Inc., have joined the Company's Board of Directors effective May 4, 2006. With their election, the Company's Board expands to nine members. Mobius Annual European Users Group Conference Recognizes Customer Achievement: Mobius announced the winners of the annual Mobius Customer Achievement Awards, presented this year to seven European organizations whose use of Mobius software meets the highest standards for innovation and delivering value. The awards were presented at the second annual Mobius Users Group Conference for European, Middle Eastern and African (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) customers, held this year in Prague, Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. . Mobius Honored as Finalist in ECM (1) (Enterprise Change Management) See version control and configuration management. (2) (Error Correcting Mode) A Group 3 fax capability that can test for errors within a row of pixels and request retransmission. Connection's ACE Awards: Mobius announced that it has been selected as a finalist for the prestigious 2006 ACE Awards presented by ECM Connection at the AIIM (Association for Information and Image Management International, Silver Spring, MD, www.aiim.org) A membership organization founded in 1943 devoted to creating industry standards and disseminating information about the document management industry. 2006 Conference & Expo. Judged by a panel of industry analysts and editors, the ACE Awards recognize vendors that are making extra efforts to promote the education and adoption of enterprise content management (ECM) technologies within specific markets. Mobius Names James C. Biggs New Vice President of Channel Sales & Marketing: Mobius announced the appointment of James C. Biggs, 53, as Vice President of Channel Sales & Marketing, effective as of June 12, 2006. Mr. Biggs previously served as Senior Vice President, Sales and Marketing at SCALI SCALI Scalable Linux Systems (Scali Inc.) SCALI South Carolina Association of Legal Investigators, Inc. , a global provider of high performance computing computing - computer enterprise solutions, where he built and executed a direct and channel sales program for software sales into various vertical markets. Mobius's First-in-Class Content Integration Solution Dramatically Reduces IT Installations, Configuration and Administration Costs: Mobius announced the release of version 3.1 of Total Content Integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. (TCI (Trustworthy Computing Initiative) An umbrella term from Microsoft for its efforts to improve security in Windows. TCI was announced in 2002 after viruses such as Code Red and Nimda had succeeded in attacking numerous Windows computers. ), a Web services-based facility that provides seamless, uniform access to disparate content repositories, databases, file systems and e-mail applications. With this release, Mobius has published a freely available, Web standards-based interface that can be incorporated into virtually any third-party or in-house application to enable content search and retrieval across multiple sources. Conference Call Information Mobius will hold its quarterly conference call today at 11:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy to discuss its fiscal fourth quarter and year-end 2006 results. Interested persons wishing to listen to the conference call via Webcast may access it at: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails &c=113759&eventID=1351633 (Due to the length of this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , it may be necessary to copy and paste To copy files from one location to another or to copy text and images from one document to another. All modern operating systems and applications have a copy and paste capability that is typically selected from an Edit menu. See cut and paste and Win Copy between windows. this hyperlink A predefined linkage between one object and another. See hypertext. hyperlink - anchor into your Internet browser's URL address field.) The conference call will be available for playback following the live call from approximately 1:00 p.m. (Eastern) on Thursday, July 27, until 11:59 p.m. (Eastern) on Thursday, August 3. The number for the replay is 877-519-4471; international participants should dial +1-973-341-3080; all callers should enter pin number 7622479. About Mobius Mobius Management Systems, Inc. (www.mobius.com) is a leading provider of integrated solutions for content and records management. The company's comprehensive software suite integrates content across disparate repositories, supports regulatory compliance, and includes content-enabled applications that automate business processes. Mobius solutions have achieved industry-wide recognition for breadth of functionality, breadth of supported formats, and high-volume, high-demand performance. The Mobius customer base is made up of leading companies across all industries, including more than sixty percent of the Fortune 100. The company, founded in 1981, is headquartered in Rye, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Mobius has sales offices in the U.S., Canada, the United Kingdom, France, Germany, Italy, Sweden, the Netherlands, Switzerland, Australia, Japan and Singapore. The Company also markets through a network of agents in Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Europe, Middle East, Africa and Asia. Statements contained in this release may contain 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. within the meaning of 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 involve risks and uncertainties. In particular, any statements contained herein regarding expectations with respect to future sales and profitability, as well as product development and/or introductions, are subject to known and unknown risks, uncertainties and contingencies, many of which are beyond the company's control, which may cause actual results, performance or achievements to differ materially from those projected or implied in such forward-looking statements. Important factors that might affect actual results, performance or achievements include, among other things, statements regarding market acceptance of Mobius's new and existing products, ability to manage expenses, fluctuations in period to period results, seasonality, uncertainty of future operating results, long and unpredictable sales cycles, technological change, extended payment risk, product concentration, competition, international sales and operations, expansion of indirect channels, sufficient revenue from professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , protection of intellectual property, dependence on licensed technology, risk of product defects, product liability, management of growth, dependence on executive management, other key employees and subcontractors, concerns about transaction security on the Internet, factors affecting valuation of stock option expense, changes in prevailing equity-based compensation practices, general conditions in the economy and the impact of recently enacted or proposed regulations. These risks and uncertainties are described in detail from time to time in Mobius's filings with the Securities and Exchange Commission, including its 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. , filed on September 9, 2005, and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . Mobius accepts no obligation to update these forward-looking statements and does not intend to do so. ViewDirect and DocumentDirect are registered trademarks of Mobius Management Systems, Inc. All other trademarks are property of their respective owners.
MOBIUS MANAGEMENT SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
6/30/06 6/30/05 6/30/06 6/30/05
-------- -------- -------- --------
Revenues:
Software license $ 11,539 $ 11,053 $ 39,167 $ 30,883
Maintenance 10,640 10,611 42,131 41,416
Professional service and
other 2,242 1,426 7,933 5,374
-------- -------- -------- --------
Total revenues 24,421 23,090 89,231 77,673
-------- -------- -------- --------
Cost of revenues:
Software license 272 267 1,110 1,773
Maintenance 2,073 2,012 7,721 8,094
Professional service and
other 1,872 1,431 6,277 4,782
-------- -------- -------- --------
Total cost of revenues 4,217 3,710 15,108 14,649
-------- -------- -------- --------
Gross profit 20,204 19,380 74,123 63,024
-------- -------- -------- --------
Operating expenses:
Sales and marketing 10,133 10,529 37,447 36,402
Research and development 5,410 5,547 22,726 22,722
General and administrative 3,390 3,135 13,356 12,000
-------- -------- -------- --------
Total operating expenses 18,933 19,211 73,529 71,124
-------- -------- -------- --------
Income (loss) from operations 1,271 169 594 (8,100)
Miscellaneous income, net 537 735 2,341 2,368
-------- -------- -------- --------
Income (loss) before income
taxes 1,808 904 2,935 (5,732)
Provision for (benefit from)
income taxes 652 289 855 (3,037)
-------- -------- -------- --------
Net income (loss) $ 1,156 $ 615 $ 2,080 $ (2,695)
======== ======== ======== ========
Basic weighted average shares 18,932 18,509 18,765 18,409
Basic earnings (loss) per
share $ 0.06 $ 0.03 $ 0.11 $ (0.15)
Diluted weighted average
shares 19,902 19,749 19,831 18,409
Diluted earnings (loss) per
share $ 0.06 $ 0.03 $ 0.10 $ (0.15)
MOBIUS MANAGEMENT SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
6/30/06 6/30/05
-------- --------
Assets:
Current Assets:
Cash and cash equivalents $ 39,967 $ 33,726
Accounts receivable, net 19,654 10,519
Software license installments, current 12,054 12,926
Other current assets 2,480 2,310
-------- --------
Total Current Assets 74,155 59,481
Property and equipment, net 3,912 3,663
Software license installments, non-current 9,416 17,991
Deferred income taxes, non-current 2,478 5,217
Other non-current assets 3,379 3,963
-------- --------
Total Assets $ 93,340 $ 90,315
======== ========
Liabilities & Stockholders' Equity
Current Liabilities:
Accounts payable and accrued expenses $ 15,994 $ 14,363
Deferred revenues, current 22,765 23,344
Deferred income taxes, current 2,480 5,229
-------- --------
Total Current Liabilities 41,239 42,936
Deferred revenues, non-current 2,092 3,091
Other non-current liabilities 509 721
Total Stockholders' Equity 49,500 43,567
-------- --------
Total Liabilities and Stockholders' Equity $ 93,340 $ 90,315
======== ========
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