Mechanical Dynamics Reports 29% Growth in
Revenue for Q1 2001; Earnings Jump 100% to $0.08 Per
Share
ANN ARBOR, Mich., April 24 Mechanical Dynamics, Inc. , the leading worldwide supplier of
virtual prototyping software and services, today reported revenue for the
first quarter ended March 31, 2001 of $13.8 million, versus $10.7 million for
the corresponding period in 2000. First quarter net income was $491,000, or
$0.08 diluted earnings per share, as compared to net income of $241,000, or
$0.04 diluted earnings per share, reported in Q1 2000.
Michael E. Korybalski, chairman and chief executive officer of Mechanical
Dynamics, said, "We have gotten off to an extremely strong start in 2001. In
the first quarter, we delivered to expectations, generating 29% growth in
revenue, 125% growth in operating profit, and 100% growth in EPS. We realized
immediate benefits from our acquisition of ESTECH in December 2000. Our
balance sheet remained very strong, as we closed March with more than $4.35 in
net book value per share. And, we enter Q2 with better revenue visibility
than we've had in some time. Our deferred revenue balance at the end of Q1
grew by 38% over the balance one year ago."
During the first quarter, Mechanical Dynamics received cumulative orders
valued at more than $100,000 from each of 26 different companies, including
Audi, Bosch, Bridgestone, Daihatsu, Fiat, Ford, General Motors, Honda R&D,
Jasper Motorsports, Kozo Keikaku Engineering, Magneti Marelli, Mazda,
Mitsubishi Electric, MTS Systems, Nissan, Peugeot, Toyota, Visteon,
Volkswagen, and Yusoki Kogyo Co., among others. Significant orders of less
than $100,000 each came from a number of customers, including ADtranz, Boeing,
Delphi Diesel Systems, Elasis, Ferrari Auto, Hyundai, Johns Hopkins
University, Lockheed Martin, National Renewable Energy Laboratory, Nevada
Automotive Test Center, Paccar Technical Center, Square D, Steyr-Daimler-Puch,
Subaru Research Center, and United Technologies Corporation, among others.
Korybalski added, "Our success has been driven by our continuing product
line expansion, ongoing investments to extend our global sales and service
infrastructure, and overall strong execution to plan. Looking ahead, we are
extremely well-positioned to take advantage of the trend toward widespread
adoption of system-level virtual prototyping, as manufacturers worldwide
strive to replace costly and time-consuming physical prototypes."
Mechanical Dynamics pioneered the field of mechanical system simulation
with its market-leading ADAMS(R) software, and has remained committed to
extending the capabilities of this technology to benefit manufacturers in
every industry worldwide. Engineering teams use ADAMS to build and test
functional virtual prototypes of their complex mechanical system designs.
Mechanical Dynamics also offers a full range of implementation services,
including consulting and training. In this way, the company partners with its
customers to help reduce the time, costs, and risks of the product development
process and meet the "Smarter to Market(TM)" challenge.
Except for historical information contained herein, some matters discussed
in this news release constitute forward-looking statements which involve risks
and uncertainties that could cause actual results to differ materially from
those projected. These include possible delays in developing, completing, or
shipping new or enhanced products, as well as other risks or uncertainties
that are detailed from time to time in reports filed by Mechanical Dynamics,
Inc. with the Securities and Exchange Commission, including Mechanical
Dynamics, Inc.'s registration statement on Form S-1 and related prospectus
dated May 14, 1996 and the "Risk Factors" described therein.
Additional information about Mechanical Dynamics can be obtained by
writing to the company at 2300 Traverwood Drive, Ann Arbor, Michigan 48105.
Phone: 734-994-3800. Fax: 734-994-6418.
E-mail: info@adams.com . Online: http://www.adams.com .
ADAMS and the Mechanical Dynamics logo are registered trademarks of
Mechanical Dynamics, Inc. All other company, brand, or product names are or
may be trademarks of their respective holders.
Mechanical Dynamics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, December 31,
in thousands 2001 2000
Assets: (Unaudited)
Current assets:
Cash and cash equivalents $15,060 $17,961
Accounts receivable, net 13,215 11,442
Prepaid and deferred expenses 2,908 3,255
Total current assets 31,183 32,658
Property and equipment, net 4,324 4,462
Goodwill, net 6,684 6,768
Other assets 1,760 1,981
Total assets $43,951 $45,869
Liabilities and Shareholders' Equity:
Current liabilities:
Borrowings under lines of credit $82 $49
Current portion of capital leases 406 406
Accounts payable 1,470 2,466
Accrued expenses 5,375 7,152
Deferred revenue 8,372 6,936
Total current liabilities 15,705 17,009
Capital lease obligation, less current portion 497 658
Minority interest 600 539
Shareholders' equity:
Common stock 21,818 21,998
Preferred stock 0 0
Retained earnings 6,040 5,819
Accumulated other comprehensive income (709) (154)
Total shareholders' equity 27,149 27,663
Total liabilities and shareholders' equity $43,951 $45,869
Mechanical Dynamics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Three Months Ended
March 31,
in thousands except share and per share data 2001 2000
(Unaudited)
Revenue:
Software licenses $6,191 $6,036
Software maintenance services 3,013 2,253
Professional services and other 4,637 2,450
Total revenue 13,841 10,739
Cost of revenue:
Software licenses 977 1,099
Services 4,068 2,554
Total cost of revenue 5,045 3,653
Gross profit 8,796 7,086
Operating expenses:
Sales and marketing 4,935 4,203
Research and development 1,698 1,446
General and administrative 1,317 1,026
Goodwill amortization 178 114
Total operating expenses 8,128 6,789
Operating income 668 297
Other income, net 119 85
Income before income taxes and minority interest 787 382
Provision for income taxes 235 114
Net income before minority interest 552 268
Minority interest in net income of subsidiary 61 27
Net income $491 $241
Basic net income per common share $0.08 $0.04
Weighted average common shares 6,088,056 6,286,725
Diluted net income per common share $0.08 $0.04
Weighted average common and
common equivalent shares 6,220,446 6,287,077
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X96911570
