SDRC Reports Record Quarterly Revenue; Metaphase License Revenue Up 46%.Business Editors, High Tech Writers & Analysts CINCINNATI--(BUSINESS WIRE)--July 18, 2001 SDRC (company) SDRC - The company behind VGX. http://sdrc.com/. (Nasdaq:SDRC) today announced its results for the second quarter of 2001, which exceeded consensus financial analyst estimates for both revenue and earnings. Revenues for the June quarter totaled $121.1 million, up 3% compared to $118.1 million last year, and a new company high. Net income for the quarter was $8.9 million, or $0.23 per share, compared to $8.3 million, or $0.23 per share last year. Metaphase metaphase /meta·phase/ (met´ah-faz) the second stage of cell division (mitosis or meiosis), in which the chromosomes, each consisting of two chromatids, are arranged in the equatorial plane of the spindle prior to separation. (R) license revenue was up 46% over the same quarter last year, while total Metaphase revenue of $47.1 million was up 22% and comprised about 40% of the company's business for the quarter. Significant Metaphase license orders were received from Lear, Vought, Seagate, Giat Industries, and Mazda. For the six months ended June 30, 2001, SDRC's revenue was $234.0 million, up 3% compared to the first six months of 2000, while net income was $14.7 million, or $0.39 per share, compared to $12.6 million, or $0.34 per share for the last year to date. Total Metaphase revenue for the six months ended June 30, 2001 was $91.9 million, up 23% over the same period last year. "While some cite declining economic conditions, SDRC has continued to accelerate Metaphase license growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. while gaining market share due to new web-native industry solutions and continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improving sales execution," stated Bill Weyand, 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. . "As we are sensitive to the global manufacturing slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and the difficulty of our ability to forecast the timing of large orders, we are nonetheless enthusiastic that our recent launch of TeamCenter(TM) is creating a significant number of new opportunities for SDRC in all of our geographies. As stated before, 2000 was a transition year for SDRC, and we have regained the undisputed market leadership position for collaborative product commerce (CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. ) and are the leading provider of 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 as well." Mr. Weyand continued, "Evidence of our successful transition and regained leadership was SDRC's launch in May of the industry's first collaborative applications suite for managing the total product life cycle. TeamCenter is completely new, and is the most up-to-date technology offering in the PLM 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. industry analyst reports, the TeamCenter platform is two or three years ahead of our nearest competitor. SDRC's TeamCenter provides the world's manufacturing leaders with an opportunity to acquire and leverage next-generation collaboration capabilities for design, requirements, projects, and the product/supply chain. SDRC is truly the partner of choice and the only proven scalable solutions provider for enterprise clients with over 1000 users." "In summary," noted Mr. Weyand, "we are excited about our pending acquisition by EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. Corporation (NYSE NYSE See: New York Stock Exchange :EDS). Our companies share a common commitment to customer excellence and in providing total solutions for the PLM marketplace. Our cultures are similar, our visions are aligned, and SDRC's talented personnel will be a great asset to the EDS organization." SDRC will hold a conference call at 5:00 P.M. Eastern Time today. The dial-in number is 888/928-9122 or 630/395-0486, the pass code is "SDRC." A replay of the call will be available until 11 P.M. Eastern Time Wednesday, July 25 by dialing 888/568-0857 or 402/998-0242. The conference call can also be accessed at www.streetevents.com. Except for historical information contained herein, the matters discussed in this news release are 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 which could cause the actual results to differ materially from those projected, including the timely availability and acceptance of new products, global economic uncertainties, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's most recent reports on Forms 10-K and 10-Q.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenue:
Licenses $ 44,248 $ 43,915 $ 85,620 $ 82,685
Maintenance and
services 76,895 74,194 148,348 143,624
-------- -------- -------- --------
Total revenue 121,143 118,109 233,968 226,309
Cost of revenue 49,128 50,702 97,742 100,724
-------- -------- -------- --------
Gross profit 72,015 67,407 136,226 125,585
Operating expenses:
Selling and marketing 32,020 29,811 61,507 57,762
Research and
development 23,529 22,506 46,282 41,646
General and
administrative 5,622 5,096 11,583 9,842
In process research
and development 250 0 250 0
-------- -------- -------- --------
Total operating
expenses 61,421 57,413 119,622 109,250
-------- -------- -------- --------
Operating income 10,594 9,994 16,604 16,335
Other income 1,276 3,472 3,035 4,185
-------- -------- -------- --------
Income before income
taxes 11,870 13,466 19,639 20,520
Income tax expense 3,020 5,185 4,961 7,900
-------- -------- -------- --------
Net income $ 8,850 $ 8,281 $ 14,678 $ 12,620
-------- -------- -------- --------
-------- -------- -------- --------
Net income per diluted
share $ .23 $ .23 $ .39 $ .34
Common and common
equivalent shares 38,856 36,693 37,627 36,662
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, December 31,
2001 2000
-------- --------
(unaudited)
Assets:
Cash and cash equivalents $188,062 $139,313
Marketable securities 4,329 16,779
Trade accounts receivable 101,619 108,816
Other accounts receivable 5,478 3,451
Prepaid expenses 12,380 8,446
-------- --------
Total current assets 311,868 276,805
Marketable securities 686 4,661
Property and equipment, net 23,269 24,529
Marketable software costs, net 55,641 56,943
Goodwill and other intangibles 10,101 5,994
Other assets 11,753 8,028
-------- --------
Total assets $413,318 $376,960
-------- --------
-------- --------
Liabilities and shareholders' equity:
Current liabilities $158,776 $150,044
Other long-term liabilities 7,808 7,632
Shareholders' equity 246,734 219,284
-------- --------
Total liabilities and shareholders' equity $413,318 $376,960
-------- --------
-------- --------
About SDRC -- www.sdrc.com SDRC (Structural Dynamics Structural dynamics is a subset of structural analysis which covers the behaviour of structures subjected to dynamic loading. Dynamic loads include people, wind, waves, traffic, earthquakes, and blasts. Any structure can be subject to dynamic loading. Research Corporation), with headquarters in Ohio, provides software solutions and services that propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin manufacturers to increased business competitiveness through the development of a web-based, collaborative environment for product development. SDRC employs more than 2,500 people worldwide, with 64 offices in 18 countries 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. Additional Information and Where to Find It: It is expected that SDRC will file a proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. with the SEC in connection with the Merger, and that SDRC will mail a Proxy Statement to its shareholders containing information about the Merger. Investors and security holders are urged to read the Proxy Statement carefully when it is available. The Proxy Statement will contain important information about SDRC, EDS, the Merger, the persons soliciting proxies relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Merger, their interests in the Merger and related matters. Investors and security holders will be able to obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Free copies of the Proxy Statement and these other documents may also be obtained from SDRC by directing a request through the Investors Relations portion of SDRC's website at http://www.SDRC.com or by mail to SDRC, 2000 Eastman Drive, Milford, Ohio Milford is a city in Clermont and Hamilton counties of the U.S. state of Ohio, along the Little Miami River in the southwestern part of the state. Milford, an abbreviated form of mill ford, was so named because it was the first safe ford across the Little Miami north of the Ohio 45150, attention: Investor Relations Investor relations The process by which the corporation communicates with its investors. , telephone: (513) 576-2400. In addition to the Proxy Statement, SDRC and EDS file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by SDRC or EDS at the SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at any of the SEC's other public reference rooms in 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 , New York and Chicago, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. SDRC's and EDS' filings with the SEC are also available to the public from commercial document-retrieval services and at the Web site maintained by the SEC at http://www.sec.gov. Participants in Solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual : SDRC, its directors, executive officers and certain other members of management and employees may be soliciting proxies from SDRC shareholders in favor of upon the side of; favorable to; for the advantage of. See also: favor the Merger. Information concerning the participants in the solicitation is set forth in a Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed by SDRC on May 24, 2001. Cautionary Note Regarding Forward-Looking Statements 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: Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties which could cause the actual results to differ materially from those projected, including the timely availability and acceptance of new products, global economic uncertainties, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's most recent reports on Forms 10-K and 10-Q. In addition, the completion of the merger and related transactions with EDS is subject to the satisfaction or waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. of customary conditions that involve future developments. Note to Editors: SDRC, I-DEAS and Metaphase are registered trademarks and TeamCenter is a trademark of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion