Moldflow Reports Record Second Fiscal Quarter Results; Revenue Growth of 65% Drives EPS Growth of 117% Over Prior Year
WAYLAND, Mass.--Jan. 24, 2001--Moldflow Corporation , the world leader in process-wide solutions for optimizing the design and manufacture of plastic products, today reports record results for its second fiscal quarter ended December 30, 2000. Revenue for the second quarter of fiscal 2001 once again marked the largest in the Company's history at $10.4 million, up 65% over the corresponding quarter of fiscal 2000. Earnings per share for the quarter increased by 117% to $0.13, from $0.06 in the corresponding quarter of fiscal 2000, as net income increased to $1.3 million in the quarter from $364,000 in the same quarter of the prior fiscal year.Net income for the quarter included non-cash amortization of goodwill and other intangible assets acquired in connection with the Company's acquisition of C-MOLD, a principal competitor, in April 2000. Excluding these non-cash amortization charges, proforma net income for the quarter would have been $1.6 million, or $0.16 per diluted share, an increase of $1.2 million, or $0.10 per diluted share, over the same quarter in the prior fiscal year.
Software license revenue for the second quarter of fiscal 2001 increased 76% to $6.7 million, when compared to $3.8 million recorded in the second quarter of fiscal 2000. Services revenue, including revenue from maintenance and support contracts, increased 48% to $3.7 million in the quarter, compared to $2.5 million in the corresponding quarter of fiscal 2000. On a regional basis, revenues in the USA represented 35% of total revenues for the second fiscal quarter of 2001, while Europe and Asia represented 33% and 32%, respectively.
Total revenue for the six months ended December 30, 2000 was $19.2 million compared with $11.5 million reported for the first six months of fiscal 2000, an increase of 67%. The Company reported net income for the six months ended December 30, 2000 of $1.8 million, or $0.19 per diluted share, compared to $433,000, or $0.07 per diluted share, during the same period of fiscal 2000, an increase in earnings per share of 171%. Excluding the above noted amortization charges, proforma net income for the six months ended December 30, 2000 was $2.3 million or $0.24 per diluted share.
During the second fiscal quarter of 2001, Moldflow generated $1.0 million in cash flow from operations and $0.5 million from the sale of real estate acquired in the C-MOLD acquisition, net of repayment of the related mortgage note. In addition, the Company raised $12.8 million in a second public offering of common stock. The Company invested $0.3 million in capital asset additions during the quarter.
The Company had a total of 251 employees at the end of the current quarter, of which 42 were sales representatives, 75 were in research and development, with the remainder employed in sales management, marketing, customer support and general and administrative functions.
"The power of our people and our products has shone through once again," said Marc Dulude, Moldflow president and CEO. "Our extremely strong performance during our second fiscal quarter continues to validate our business strategy and positions us strongly for future growth in the markets we serve. We are proud to have achieved, for the first time, a quarter with revenue in excess of $10 million. We continue to see strong demand for our products worldwide, as our customers tell us that they need our products to improve the quality of their product designs, reduce their product costs and speed time to market."
"Further," noted Dulude, "we have continued the rapid pace of innovation for which Moldflow has been recognized. During the quarter we launched our most feature packed release of the Moldflow Plastics Advisers(R) (MPA(R)) since it was first introduced. We have also signed numerous Internet distribution agreements that partner Moldflow with industry leaders such as GE Polymerland/GE Plastics, Conferos, and getplastic.com. These agreements allow our partners to resell our popular iMPA(TM) product - the Internet enabled version of our Moldflow Part Adviser(TM) product - on their web sites."
Dulude continued, "We are proud of these significant accomplishments in our business during the second fiscal quarter. In addition to these operating milestones, we completed a follow-on offering of shares of our common stock in December. The offering was comprised of 745,000 shares sold by the Company and 1,905,750 shares sold by existing shareholders, including a total of 345,750 shares issued upon the exercise of the underwriters' overallotment option. The enthusiasm with which this offering was received, even as the NASDAQ market was experiencing a sharp decline in December, is indicative of the importance that our investors place on growth and earnings."
"Especially exciting for us was our customers' continued adoption of our MPX(TM) technology. Revenues from our newest product line more than doubled sequentially over the September quarter, further validating our commitment to extending our leadership to the shop floor," concluded Dulude.
Moldflow's results reflected growth during the quarter from sales to companies across numerous lines of business, including contract molders, automotive, electronics, telecommunications and materials suppliers. Significant orders were received during the quarter from companies such as Robert Bosch GmbH, Prototipo Engineering, DaimlerChrysler, DME Corporation, LG Cable, Muto Seiko, Yamaichi Electronics and Kuroda Kagaku. In total, over 130 new customers were added during the quarter.
The unaudited condensed consolidated statement of income and balance sheet for the second fiscal quarter and the six months ended December 30, 2000 follow.
Moldflow Corporation
Unaudited Condensed Consolidated Statement of Income
(in thousands, except per share data)
Three months ended Six months ended
------------------ ------------------
Dec. 30, Jan. 1, Dec. 30, Jan. 1,
2000 2000 2000 2000
-------- -------- -------- --------
Revenue:
Software licenses $ 6,728 $ 3,828 $ 11,950 $ 6,651
Services 3,690 2,495 7,292 4,853
-------- -------- -------- --------
Total revenue 10,418 6,323 19,242 11,504
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Costs and expenses:
Cost of software
licenses revenue 420 153 761 322
Cost of services revenue 396 255 739 491
Research and development 1,592 874 3,179 1,709
Selling and marketing 4,650 3,113 8,941 5,811
General and administrative 1,690 1,201 3,075 2,277
Litigation -- 250 -- 530
Amortization of goodwill
and other intangible
assets 392 -- 759 --
-------- -------- -------- --------
Total operating expenses 9,140 5,846 17,454 11,140
-------- -------- -------- --------
Income from operations 1,278 477 1,788 364
Interest income (expense),
net 588 (38) 960 (39)
Other income (loss), net 27 (30) 62 (64)
-------- -------- -------- --------
Income before income taxes 1,893 409 2,810 261
Provision (benefit) for
income taxes 605 45 987 (172)
-------- -------- -------- --------
Net income $ 1,288 $ 364 $ 1,823 $ 433
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Net income per common share:
Basic $ 0.14 $ 0.96 $ 0.20 $ 1.19
Diluted $ 0.13 $ 0.06 $ 0.19 $ 0.07
Weighted average shares:
Basic 9,371 378 9,279 365
Diluted 9,904 6,325 9,801 6,308
Moldflow Corporation
Proforma Results (1)
(in thousands, except per share data)
Income from operations $ 1,670 $ 477 $ 2,546 $ 364
Net income $ 1,555 $ 364 $ 2,314 $ 433
Net income per common
share - diluted $ 0.16 $ 0.06 $ 0.24 $ 0.07
Weighted average
shares - diluted 9,904 6,325 9,801 6,308
(1) The proforma results exclude the non-cash amortization of goodwill
and other intangible assets.
Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheet
(in thousands)
December 30, June 30,
2000 2000
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 31,672 $ 27,259
Marketable securities 14,876 8,452
Accounts receivable, net 8,030 5,972
Prepaid expenses and
other current assets 2,515 1,946
-------- --------
Total current assets 57,093 43,629
Fixed assets, net 4,348 4,864
Intangible assets, net 1,747 1,994
Goodwill, net 6,384 6,628
Other assets 280 208
-------- --------
Total assets $ 69,852 $ 57,323
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Liabilities and Stockholders' Equity
Current liabilities:
Current debt obligations $ 26 $ 68
Accounts payable 1,846 1,203
Accrued expenses 6,270 6,264
Deferred revenue 4,895 5,103
-------- --------
Total current liabilities 13,037 12,638
Long-term debt, net of
current portion 242 852
Other long-term liabilities 61 55
-------- --------
Total liabilities 13,340 13,545
-------- --------
Stockholders' equity:
Common stock 101 93
Additional paid-in capital 62,218 49,225
Accumulated deficit (6,437) (8,260)
Accumulated other
comprehensive income 630 2,720
-------- --------
Total stockholders' equity 56,512 43,778
-------- --------
Total liabilities and
stockholders' equity $ 69,852 $ 57,323
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