MSC.Software Reports Preliminary Fourth Quarter and Year End
Financial Results SANTA ANA, Calif., Feb. 18 /PRNewswire-FirstCall/
-- MSC.Software Corp. , the leading global provider of virtual
product development (VPD) products including simulation software
and services, today announced preliminary financial results for the
fourth quarter and fiscal year ended December 31, 2003. Fourth
quarter highlights include: * Revenues of $69.3 million; up 12%
sequentially from Q3; * Operating margin at 9.2%, improved from
4.5% in Q3; * Income from continuing operations of $3.3 million or
$0.09 per diluted share. Fiscal year 2003 highlights include: *
Revenues of $253.2 million, up 2% over FY 2002; * Loss from
continuing operations of $240,000 or ($0.01) per diluted share; *
Key balance sheet items include $49 million in cash and
investments, and $69 million in deferred revenue. Note on
Preliminary Results The preliminary fourth quarter and year end
results are subject to the final resolution of MSC.Software's
foreign pension liability. The final resolution of this item is not
expected to have an adverse impact on the fourth quarter or
year-end financial results. Conference Call MSC.Software's
conference call to discuss the preliminary fourth quarter results
will be Webcast live today at 8:30 a.m. Pacific (11:30 am Eastern)
and can be accessed from the Company's website at
http://www.mscsoftware.com/ir . It can also be accessed through
thefollowing dial-in numbers: US - (800) 374-0151 or Intl. - (706)
634-4981. An archived version of the conference call will be
available at the Company's website. Upon completion of the
conference call, a conference call replay will also be available
for 48 hours at: US - (800) 642-1687 or Intl. - (706) 645-9291
using the conference ID code: 5157903. For the fourth quarter ended
December 31, 2003, MSC.Software reported revenue of $69.3 million,
compared to $72.5 million for the fourth quarter last year. The
reported income from continuing operations for the fourth quarter
was $3.3 million or $0.09 per diluted share compared to $3.0
million or $0.10 per diluted share in the fourth quarter last year.
For the fiscal year ended December 31, 2003, MSC.Software reported
revenue of $253.2 million compared to $248.2 million in fiscal
2002, an increase of 2%. The loss from continuing operations for
the fiscal year 2003 was $240,000 or ($0.01) per diluted share
compared to a loss from continuing operations of $11.0 million of
($0.37) per diluted share for fiscal 2002. For the fiscal year
ended December 31, 2003, restructuring, impairment charges and debt
prepayment costs totaled $6.9 million, net of tax, or the
equivalent of $0.20 per diluted share. For the fiscal year ended
December 31, 2002, restructuring, impairment charges and the
write-off of acquired IPR&D totaled $11.0 million, net of tax,
or the equivalent of $0.37 per diluted share. "The fourth quarter
results reinforce the fact that MSC.Software is focused and is
executing according to plan and that our key business, product and
financial indicators are moving in a positive direction," said
Frank Perna, chairman and CEO of MSC.Software. "We continue to see
steady incremental revenue from major aerospace programs like the
Boeing 7E7 and Lockheed's F-35 Joint Strike Fighter. We also had an
excellent quarter in completing government-related contracts. Major
services engagements in both Europe and Asia-Pacific were ongoing
with customers including BMW and Toyota. A strong services backlog
is being driven by our customer's requirements for continual
product development process improvements. The MasterKey Token
License System is building a strong foundation for growth in our
key accounts." "We have entered into an expanded Global Strategic
Alliance with IBM targeting our joint automotive, aerospace and
defense customers. This new agreement is a validation of our VPD
strategy and we have already submitted joint proposals to some of
our largest customers." "During the quarter, we had seven
significant product releases and are seeing opportunities in the
pipeline related to our newer product offerings including
Simulation Data Management, SimDesigner and MSC.Robust Design. The
adoption of the MasterKey Token License System and the
overwhelmingly positive feedback for MSC.Nastran 2004 give us
confidence that our integrated product offerings will drive
increased usage of VPD products and services." "Our customer base
is showingindications that both interest and funding for new
projects is increasing. Deferred revenue and maintenance revenue
are increasing and we saw an overall improvement in our operating
margins to 9.2% in Q4. We are very much looking forward to
increasing our operating leverage and momentum into 2004 and 2005
as manufacturers around the world continue to embrace VPD."
Americas In the Americas, revenue was $23.2 million in the fourth
quarter and $87.5 million for the fiscal year ended December 31,
2003. In the fourth quarter, 61 transactions over $100,000 were
signed, and the total number of new accounts increased by 195. Key
software and service transactions completed in the quarter included
Bell Helicopter, Boeing, Caterpillar, GE Power, NASA, and TI
Automotive. Europe MSC.Software's European revenue was $24.4
million in the fourth quarter and $84.5 million for fiscal 2003. In
the fourth quarter, the total number of new accounts increased by
24 and the number of transactions over $100,000 totaled 31. Key
software and service engagements were signed with Airbus, Audi,
SAAB, Alenia, EADS, and Volkswagen. Asia-Pacific The Asia-Pacific
region reported revenue of $21.7 million in the fourth quarter and
$81.2 million in fiscal 2003. In the fourth quarter, the total
number of new customer accounts increased by 91. In the fourth
quarter 46 transactions over $100,000 were signed in the region.
Key software and service contracts were signed with FHI Gunma and
Nittan Valve in Japan, Singapore Air Force, Petronas Research in
Malaysia, GE Transportation in India, and Chery Automobile Company
in the PRC. Outlook Based on current visibility, the Company
expects first quarter revenue to be in the range of $63 million to
$66 million and earnings to be in the range of $0.04 to $0.07 per
diluted share. The Company expects revenue for FY 2004 to be in the
range of $260 million to $280 million and earnings to be in the
range of $0.35 to $0.45 per diluted share. About MSC.Software
Corporation MSC.Software (NYSE:MNS) is the leading global provider
of virtual product development (VPD) products including simulation
software and services that help 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 and services.
MSC.Software employs more than 1400 people in 23 countries. For
additional information about MSC.Software's products and services,
please visit http://www.mscsoftware.com/ . Except for the
historical information contained herein, certain matters discussed
in this news release constitute forward-looking statements 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
todiffer 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 newor
enhanced products, the ability to assimilate 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 and other reports filed by the Company with the
Securities and Exchange Commission. (Financial Tables Follow)
MSC.SOFTWARE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (Amounts in Thousands, Except Per Share Amounts) Three
Months Ended Twelve Months Ended December 31, December 31, 2003
2002 2003 2002 REVENUE: Software $42,204 $47,675 $150,632 $160,361
Services 27,101 24,835 102,582 87,790 Total Revenue 69,305 72,510
253,214 248,151 COST OF REVENUE: Software 6,849 5,182 21,835 22,468
Software - Impairment of Capitalized Development Costs - - 782
4,751 Services 14,020 14,992 54,721 54,299 Total Cost of Revenue
20,869 20,174 77,338 81,518 GROSS PROFIT 48,436 52,336 175,876
166,633 OPERATING EXPENSE: Research and Development 6,400 7,823
27,156 25,397 Selling, General and Administrative 33,787 33,503
126,135 131,871 Restructuring and Other Impairment Charges - -
4,231 9,064 Write-Off of Acquired In- Process R&D - - - 2,380
Amortization of Intangibles 1,874 1,918 7,584 6,574 Total
OperatingExpense 42,061 43,244 165,106 175,286 OPERATING INCOME
(LOSS) 6,375 9,092 10,770 (8,653) OTHER EXPENSE Interest Expense
1,153 3,503 5,652 7,443 Other Expense (Income), Net (1) 765 5,347
165 Total Other Expense, Net 1,152 4,268 10,999 7,608 INCOME (LOSS)
FROM CONTINUING OPERATIONS BEFORE PROVISION (BENEFIT) FOR INCOME
TAXES 5,223 4,824 (229) (16,261) Provision (Benefit) for Income
Taxes 1,933 1,826 11 (5,247) INCOME (LOSS) FROM CONTINUING
OPERATIONS 3,290 2,998 (240) (11,014) DISCONTINUED OPERATIONS
Income (Loss) from Discontinued Operations, Net of Tax (231) (721)
(2,582) (1,015) Loss from Disposal of Discontinued Operations, Net
of Tax - - (20,686) - TOTAL LOSS FROM DISCONTINUED OPERATIONS (231)
(721) (23,268) (1,015) INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 3,059 2,277 (23,508) (12,029)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE - - - (39,300)
NET INCOME (LOSS) $3,059 $2,277 $(23,508) $(51,329) BASIC EARNINGS
(LOSS) PER SHARE FROM CONTINUING OPERATIONS $0.11 $0.10 $(0.01)
$(0.37) DILUTED EARNINGS (LOSS) PER SHARE FROM CONTINUING
OPERATIONS $0.09 $0.10 $(0.01) $(0.37) BASIC EARNINGS (LOSS) PER
SHARE FROM DISCONTINUED OPERATIONS $(0.01) $(0.02) $(0.77) $(0.04)
DILUTED EARNINGS (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS
$(0.01) $(0.02) $(0.77) $(0.04) BASIC AND DILUTED LOSS PER SHARE
FROM CUMULATIVE CHANGE $0.00 $0.00 $0.00 $(1.34) BASIC EARNINGS
(LOSS) PER SHARE $0.10 $0.08 $(0.78) $(1.75) DILUTED EARNINGS
(LOSS) PER SHARE $0.08 $0.08 $(0.78) $(1.75) Basic Weighted-Average
Shares Outstanding 30,348 29,730 30,102 29,379 Diluted
Weighted-Average Shares Outstanding 42,694 30,194 30,102 29,379
MSC.SOFTWARE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (Amounts in Thousands) December 31, December 31, 2003
2002 ASSETS Cash and Investments $48,534 $34,564 Trade Accounts
Receivable, Net 73,691 60,896 Current Assets of Discontinued
Operations 384 38,341 Other Current Assets 43,797 35,576 Total
Current Assets 166,406 169,377 Property and Equipment, Net 29,863
34,888 Capitalized Software Costs, Net 28,322 25,957 Goodwill and
Other Intangible Assets, Net 237,212 246,382 Long-term Assets of
Discontinued Operations - 19,029 OtherAssets 23,233 11,641 Total
Assets $485,036 $507,274 LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable $10,679 $9,919 Current Portion of Long-Term Debt -
13,750 Current Portion of Notes Payable to Shareholders - 4,590
Deferred Revenue 69,392 67,327 Restructuring Reserve 1,229 4,105
Current Liabilities of Discontinued Operations 3,330 24,868 Other
Current Liabilities 34,938 37,029 Total Current Liabilities 119,568
161,588 Deferred Income Taxes 21,700 29,243 Long-Term Debt, Less
Current Portion - 40,104 Notes Payable to Shareholders 4,677 10,536
Subordinated Convertible Debentures 100,000 - Subordinated Notes
Payable, Less Current Portion 7,015 6,817 Long-Term Liabilities of
Discontinued Operations - 9,344 Other Long-Term Liabilities 8,438
7,162 Total Liabilities 261,398 264,794 Total Shareholders' Equity
223,638 242,480 Total Liabilities and Shareholders' Equity $485,036
$507,274 DATASOURCE: MSC.Software Corp. CONTACT: investor, Joanne
Keates, Vice President, Investor Relations, +1-714-444-8551, , or
media, Todd Evans, Corporate Communications, +1-714-445-3066, Web
site: http://www.mscsoftware.com/ http://www.mscsoftware.com/ir
Copyright
Msc.Software (NYSE:MNS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Msc.Software (NYSE:MNS)
Historical Stock Chart
From Aug 2023 to Aug 2024