Note to Editors: Moldflow, Moldflow Manufacturing Solutions and
MMS are trademarks or registered trademarks of Moldflow Corporation or
its subsidiaries worldwide. All other trademarks are properties of
their respective holders.
Cautionary Statement Regarding Forward-Looking Information
Pursuant to the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995, the Company notes
that any statements contained in this press release that are not
historical facts are forward looking statements. Such forward looking
statements include, but are not limited to, those regarding Moldflow's
or management's intentions, hopes, beliefs, expectations, projections
or plans for the future and statements regarding: (i) Moldflow's
market leadership and competitive position in its market segments, and
(ii) the Company's business outlook including revenue and earnings
guidance. Forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
projected. These risks and uncertainties include: (i) with respect to
the Company's market leadership and competitive position, the risks
that a renewed economic downturn will adversely impact the market for
the Company's products, that competitors will emerge with greater
resources or unforeseen technological breakthroughs and that our
Manufacturing Solutions products will have a longer sales cycle than
our Design Optimization products, and (ii) with respect to the
Company's business outlook, the risks that a continued weak world
economy will further slow capital spending by the Company's
prospective customers, that the Company may not be able to recognize
the revenue derived from orders received, that the sales cycle may
lengthen based on the larger average deal sizes for our Manufacturing
Solutions products, that foreign currency fluctuations may adversely
affect our financial results, that our distribution partners will not
achieve their revenue objectives, that the overall mix of revenues
differs materially from that projected, and that changes in US or
foreign tax legislation may result in a higher level of income tax
expense than that projected, as well as other risks and uncertainties
detailed from time to time in reports filed by Moldflow with the
Securities and Exchange Commission, including the Company's Annual
Report on Form 10-K for the year ended June 30, 2002 as well as its
subsequent quarterly and annual filings. Revenue and earnings guidance
offered by senior management today represents a point-in-time estimate
and is based on information as of the date of this press release.
Senior management has made numerous assumptions in providing this
guidance which, while believed to be reasonable, may not prove to be
accurate. In addition, as noted above, there are numerous factors
which may cause actual results to differ materially from the guidance
provided. The Company expressly disclaims any current intention or
obligation to update the guidance provided or any other
forward-looking statement in this press release to reflect future
events or changes in facts assumed for purposes of providing this
guidance or otherwise affecting the forward-looking statements
contained in this press release.
Moldflow Corporation
Unaudited Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended
June 30, 2003
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $4,768 $- $4,768
Services 5,157 - 5,157
------- ----- -------
Total revenue 9,925 - 9,925
------- ----- -------
Costs and
expenses:
Cost of product
revenue 800 - 800
Cost of
services revenue 324 - 324
Research and
development 1,309 - 1,309
Selling and
marketing 5,232 - 5,232
General and
administrative 1,912 - 1,912
Non-recurring charges (33) 33(c) -
Amortization of
intangible assets 111 (111)(d) -
------- ----- -------
Total operating
expenses 9,655 (78) 9,577
------- ----- -------
Income (loss)
from operations 270 78 348
Interest
income, net 255 - 255
Other income
(loss), net (30) - (30)
------- ----- -------
Income (loss)
before income
taxes 495 78 573
Provision for
(benefit from)
income taxes 245 (12)(e) 233
------- ----- -------
Net income
(loss) $250 $90 $340
======= ===== =======
Net income (loss) per
common share:
Basic $0.02 $0.03
Diluted $0.02 $0.03
Weighted average
shares:
Basic 10,003 10,003
Diluted 10,465 10,465
Three Months Ended
June 30, 2002
------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
------------------------------
Revenue:
Product $3,937 $- $3,937
Services 4,366 - 4,366
------- ------- -------
Total revenue 8,303 - 8,303
------- ------- -------
Costs and
expenses:
Cost of product
revenue 607 - 607
Cost of
services revenue 412 - 412
Research and
development 1,640 - 1,640
Selling and
marketing 4,276 - 4,276
General and
administrative 1,614 - 1,614
Non-recurring
charges 1,272 (1,272)(g) -
Amortization of
intangible assets 164 (164)(d) -
------- ------- -------
Total operating
expenses 9,985 (1,436) 8,549
------- ------- -------
Income (loss)
from operations (1,682) 1,436 (246)
Interest
income, net 312 - 312
Other income
(loss), net 317 (446) (129)
------- ------- -------
Income (loss)
before income
taxes (1,053) 990 (63)
Provision for
(benefit from)
income taxes (204) 363(e) 159
------- ------- -------
Net income
(loss) $(849) $627 $(222)
======= ======= =======
Net income (loss) per
common share:
Basic $(0.08) $(0.02)
Diluted $(0.08) $(0.02)
Weighted average
shares:
Basic 10,085 10,085
Diluted 10,085 10,085
Year Ended
June 30, 2003
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $17,259 $- $17,259
Services 19,366 - 19,366
-------- ------- --------
Total revenue 36,625 - 36,625
-------- ------- --------
Costs and
expenses:
Cost of product
revenue 2,964 (179)(c) 2,785
Cost of
services revenue 1,210 - 1,210
Research and
development 5,650 - 5,650
Selling and
marketing 18,638 - 18,638
General and
administrative 7,242 - 7,242
Non-recurring
charges 405 (405)(c) -
Amortization of
intangible assets 605 (605)(d) -
-------- ------- --------
Total operating
expenses 36,714 (1,189) 35,525
-------- ------- --------
Income (loss)
from operations (89) 1,189 1,100
Interest
income, net 1,089 - 1,089
Other income
(loss), net (198) - (198)
-------- ------- --------
Income before
income taxes 802 1,189 1,991
Provision for
income taxes 920 98(e) 1,018
-------- ------- --------
Net income (loss) $(118) $1,091 $973
======== ======= ========
Net income (loss) per
common share:
Basic $(0.01) $0.10
Diluted $(0.01) $0.09
Weighted average
shares:
Basic 10,020 10,020
Diluted 10,020 10,368
Year Ended
June 30, 2002
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $17,870 $- $17,870
Services 17,218 - 17,218
-------- ------- --------
Total revenue 35,088 - 35,088
-------- ------- --------
Costs and
expenses:
Cost of product
revenue 2,518 - 2,518
Cost of
services revenue 1,401 - 1,401
Research and
development 6,234 - 6,234
Selling and
marketing 18,134 - 18,134
General and
administrative 6,660 - 6,660
Non-recurring
charges 1,272 (1,272)(g) -
Amortization of
intangible assets 656 (656)(d) -
-------- ------- --------
Total operating
expenses 36,875 (1,928) 34,947
-------- ------- --------
Income (loss)
from operations (1,787) 1,928 141
Interest
income, net 1,455 - 1,455
Other income
(loss), net 1,712 (1,575)(f) 137
-------- ------- --------
Income before
income taxes 1,380 353 1,733
Provision for
income taxes 600 153(e) 753
-------- ------- --------
Net income (loss) $780 $200 $980
======== ======= ========
Net income (loss) per
common share:
Basic $0.08 $0.10
Diluted $0.08 $0.09
Weighted average
shares:
Basic 10,076 10,076
Diluted 10,360 10,360
(a)The Unaudited Consolidated Statement of Operations prepared in
accordance with accounting principles generally accepted in the United
States of America ("GAAP").
(b)The Unaudited Consolidated Statement of Operations prepared on an
adjusted basis from that of the statement prepared in accordance with
GAAP, which is intended to enhance the reader's understanding of the
Company's results from operations.
(c) Restructuring and other impairment charges resulting from actions
taken in conjunction with the Company's January 2003 acquisition of
Controle de Processus Industriels, s.a.r.l. ("CPI") and related
subsequent adjustments.
(d) Amortization of acquired intangible assets.
(e) Net tax effect of the adjusted items.
(f) Gains on the sales of certain investments and other assets and a
gain on the settlement of an acquisition escrow matter.
(g) Restructuring charges resulting from actions taken in our April
2002 Restructuring Plan.
Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheet
(in thousands)
June 30, June 30,
2003 2002
-------- --------
Assets
Current assets:
Cash and cash equivalents $38,320 $47,634
Marketable securities 13,820 3,233
Accounts receivable, net 6,147 5,927
Inventories, prepaid expenses
and other current assets 5,011 4,098
-------- --------
Total current assets 63,298 60,892
Fixed assets, net 3,891 3,793
Goodwill and other intangibles
assets, net 10,355 10,101
Other assets 1,933 1,227
-------- --------
Total assets $79,477 $76,013
======== ========
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $1,684 $1,164
Accrued expenses 7,439 7,664
Deferred revenue 8,551 7,931
-------- --------
Total current liabilities 17,674 16,759
Deferred revenue 513 -
Other long-term liabilities 641 614
-------- --------
Total liabilities 18,828 17,373
-------- --------
Stockholders' Equity:
Common stock 102 101
Additional paid-in capital 62,867 62,732
Treasury stock (926) (327)
Accumulated deficit (4,090) (3,972)
Accumulated other
comprehensive income 2,696 106
-------- --------
Total stockholders'
equity 60,649 58,640
-------- --------
Total liabilities and
stockholders' equity $79,477 $76,013
======== ========
Moldflow Corporation
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands)
Three Months Ended Year Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------
Cash flows provided by operating
activities $914 $1,416 $2,384 $4,961
Cash flows provided by (used in)
investing activities (10,237) (3,683) (13,398) 8,836
Cash flows provided by (used in)
financing activities 43 27 (525) (55)
Effect of exchange rate changes on
cash and cash equivalents 1,477 569 2,225 923
-------- -------- -------- --------
Net increase (decrease) in cash
and cash equivalents (7,803) (1,672) (9,314) 14,665
Cash and cash equivalents,
beginning of period 46,123 49,305 47,634 32,969
-------- -------- -------- --------
Cash and cash equivalents,
end of period $38,320 $47,634 $38,320 $47,634
======== ======== ======== ========
Reconciliation of the Unaudited Condensed Consolidated Statement of
Cash Flows prepared in accordance with GAAP to free cash flows:
Three Months Ended Year Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------
Cash flows provided by
operating activities $914 $1,416 $2,384 $4,961
Purchases of fixed assets (236) (451) (1,240) (1,143)
Proceeds of fixed asset disposals - - - 930
Capitalization of software
development costs (351) - (669) (602)
-------- -------- -------- --------
Free cash flows $327 $965 $475 $4,146
======== ======== ======== ========
