WAYLAND, Mass.--(BUSINESS WIRE)--Aug. 5, 2003--Moldflow
Corporation (NASDAQ:
MFLO) today announced the results for its fourth
fiscal quarter and year ended June 30, 2003, which were above the
expectations previously set out by management. Fourth quarter revenues
of $9.9 million increased 20% from the corresponding quarter of fiscal
2002 and increased 5% sequentially from the preceding quarter.
Revenues of $36.6 million for the full 2003 fiscal year increased 4%
over fiscal 2002.
For the fourth fiscal quarter of 2003, Moldflow reported net
income, as measured under generally accepted accounting principles
("GAAP"), of $250,000, or $0.02 per diluted share, compared to a net
loss of $849,000, or $0.08 per share, during the same quarter of
fiscal 2002. For the full 2003 fiscal year, the Company reported a net
loss, as measured under GAAP, of $118,000, or $0.01 per share,
compared to net income of $780,000, or $0.08 per diluted share, in
fiscal 2002.
Pro forma net income, a non-GAAP financial measure, for the fourth
quarter was $340,000, or $0.03 per diluted share, which compared to
pro forma net loss of $222,000, or $0.02 per share, in the same
quarter of the prior year. Pro forma net income for the full 2003
fiscal year was $973,000, or $0.09 per diluted share, which was
unchanged from fiscal 2002. Pro forma net income in all periods
excludes non-cash amortization expense related to acquired intangible
assets and other restructuring and acquisition related charges, net of
related tax effects. Additionally, fiscal 2002 pro forma net income
excludes gains recognized on the sale of certain investments and
long-term assets. Please refer to the Unaudited Consolidated Statement
of Operations attached to this press release for a complete
reconciliation of the pro forma amounts to the most directly
comparable GAAP measures.
Roland Thomas, Moldflow's president and CEO said, "I am pleased to
report on a fiscal quarter and full fiscal year of strong financial
and operating results. During the past quarter, we continued to
execute well amid mixed global market conditions by delivering on our
well-established value proposition. We were rewarded with solid growth
in both revenues and profits."
He continued, "In the fourth quarter, we saw strong demand for our
products, in particular, the Moldflow Manufacturing Solutions, or
'MMS' products. In April, we released MMS 1.0 - the integration of our
process and production monitoring and control products into a new,
modular user environment - and it was well received by our customers.
With the demonstrated rapid payback on investment afforded by the MMS
suite, many new customers made initial investments and a notable
number of world-class global manufacturing companies expanded pilot
implementations into plant-wide deployments. In addition, we built
upon the initial successes that we had in France in the third quarter
with the production monitoring product acquired in our purchase of CPI
in January. This resulted in the highest revenue quarter for the MMS
product line in our history. This fiscal year also saw positive signs
for our Design Optimization Solutions business, particularly in Japan
where we were able to achieve many significant orders from both new
and existing customers."
He concluded, "The successes we had in the fourth quarter and the
last year are gratifying and make us optimistic about the future and
our business strategy. As we look forward to fiscal 2004, we expect to
see continued modest growth in total revenues. Further, we remain
committed to managing the company for growth with increased
profitability and cash flow while continuing to make investments in
research and development to maintain our market leadership and in the
distribution channels needed to reach our global customer base. Given
that there is still a degree of uncertainty in the world economy and
our end-user markets in particular, we will continue to monitor the
economic conditions and adjust our business model when appropriate to
meet these objectives."
Fourth Quarter Highlights
Fourth quarter 2003 revenues totaled $9.9 million and represented
an increase of 20% over the same period in the prior year. Excluding
the impact of movements in foreign currency exchange rates, revenues
increased 9% over the corresponding period of the prior year. On a
sequential basis, total revenues in the fourth fiscal quarter
increased 5%, while growth in revenues on a constant currency basis
was 2%.
Total product revenues for the fourth quarter of fiscal 2003 of
$4.8 million increased by 21% over the same quarter of fiscal 2002 and
increased sequentially by 4% over the preceding quarter. Revenues from
Manufacturing Solutions products during the fourth quarter represented
32% of total product revenues, up from 18% in the prior year, while
Design Optimization products accounted for 68% of total product
revenues. Service revenues, primarily comprised of revenues from
maintenance and support contracts, were $5.2 million for the fourth
quarter of fiscal 2003, up 18% from the same quarter in fiscal 2002
and 5% from the preceding quarter. On a regional basis, revenues in
Europe represented 44% of Moldflow's total revenues for the fourth
quarter of fiscal 2003, while revenues in the Americas and Asia
Pacific regions represented 24% and 32% of total revenue,
respectively. In total, 92 new customers were added during the
quarter.
As of June 30, 2003, the Company had $52.1 million in cash and
marketable securities and no long-term debt. Free cash flow generated
during the fourth quarter was $327,000 while cash flow provided by
operating activities was $914,000. Please refer to the Unaudited
Condensed Consolidated Statement of Cash Flows attached to this press
release for a complete reconciliation of free cash flow to cash flow
provided by operating activities as measured under GAAP.
The Company had a total of 246 employees at June 30, 2003, of
which 33 were sales representatives, 75 were in research and
development, with the remainder employed in sales management,
marketing, customer support, and general and administrative functions.
Business Outlook
The current business outlook is based on information as of August
5, 2003 and is current as of that day only. Moldflow expects revenues
for the first fiscal quarter of 2004 to be between $9.4 million and
$9.9 million and net income per diluted share, measured under GAAP, to
be between $0.01 and $0.03 per share, assuming an effective income tax
rate of 35%.
Moldflow expects negative free cash flow for the first fiscal
quarter of 2004 to be between $400,000 and $600,000 consistent with
historical seasonal trends. Free cash flow in Moldflow's outlook is
based upon a projection of cash flow used in operations of between
$100,000 and $200,000 reduced by capital expenditures, including
capitalized software development costs, projected to be between
$300,000 and $400,000.
Financial Results
The unaudited condensed consolidated financial statements and
supplemental information for the fourth fiscal quarter and the year
ended June 30, 2003 follow.
Use of Non-GAAP Financial Information
To supplement our unaudited consolidated financial statements
presented on a GAAP basis, we use non-GAAP, or "pro forma," additional
measures of net income (loss), net income (loss) per share and cash
flow that we believe are appropriate to enhance an overall
understanding of our historical financial performance and future
prospects. The non-GAAP results, which are adjusted to exclude certain
costs, expenses, gains and losses from the comparable GAAP measures,
are an indication of our baseline performance before gains, losses or
other charges that are considered by management to be outside of our
core operating results. These non-GAAP results are among the primary
indicators management uses as a basis for evaluating our financial
performance as well as for forecasting of future periods. For these
reasons, and because the non-GAAP additional measures present
additional information that is not readily ascertainable from the GAAP
presentation, management believes these non-GAAP measures can be
useful to investors, potential investors and others. The presentation
of this additional information is not meant to be considered in
isolation or as a substitute for net income (loss), income (loss) per
share or cash flow from operations prepared in accordance with GAAP.
Information Dissemination
Moldflow will host a conference call to discuss the fourth quarter
and full fiscal year 2003 results and future outlook at 11:30 a.m. US
Eastern time today. A live Webcast of the conference call, together
with this press release and supplemental financial information, can be
accessed through the Company's Website at
www.moldflow.com in the
Investor Information section. In addition, the call, press release and
supplemental information will be archived and can be accessed through
the same link.
About Moldflow Corporation
Moldflow (NASDAQ:
MFLO) is the world's leading provider of
software products and services that increase the speed, efficiency,
quality and drive down the cost of the design and manufacture of
injection molded plastic products. Companies use Moldflow's complete
suite of products to address plastic part design issues at the
earliest possible stage as well as to maximize productivity and
profitability on the manufacturing floor. Its collaboration with
academia, industry and customers around the world has led to a
reputation for constant innovation in the complete
design-to-manufacture process. Headquartered in Wayland,
Massachusetts, Moldflow has offices and research and development
centers in the United States, Europe, Australia and the Asia Pacific
region. For more information about Moldflow visit
www.moldflow.com or
call 508-358-5848; fax 508-358-5868.