PlanetCAD Announces First Quarter Financial Results
BOULDER, Colo.--May 3, 2001--PlanetCAD Inc. (AMEX:PCD), a leading developer and marketer of Quality Data Management (QDM) solutions for manufacturers and their supply chains, today announced financial results for its first fiscal quarter ended March 31, 2001.First quarter sales increased 214% to $480,000 versus sales of $153,000 in the first quarter of last year. New license revenue in this year's first quarter was $88,000, while revenue from services was $392,000. The Company reported a net loss of $2.2 million, or $0.18 per diluted share, versus a net loss of $1.5 million, or $0.14 per diluted share, in the comparable period a year ago. Management attributed the sharp increase in sales to the Company's acquisition of Prescient Technologies in July of last year.
Jim Bracking, president and CEO, said the first quarter was most notable for the strategic and operational steps management took to strengthen PlanetCAD's position within the worldwide markets for high-end engineering software and data management products.
"During the first fiscal period, we began implementing important changes to the Company's strategic focus," Bracking said. "While the impact of these changes has not, as yet, resulted in accelerated financial growth, we believe they will dramatically enhance our long-term corporate strength and financial success. The changes we have implemented, which are designed to capitalize on our core engineering software development expertise, are already strengthening our reputation among major manufacturing customers and their supply chains."
Bracking said recent changes have moved the Company away from its previous focus on development of an Internet-based application service platform. PlanetCAD's strategic shift has also included a corporate restructuring program designed to streamline operations, reduce the Company's cash burn rate, strengthen the senior management team and position PlanetCAD for accelerated growth and long-term profitability.
"PlanetCAD is built around a suite of products that can dramatically enhance the efficiency and speed of the manufacturing process," Bracking said. "In exceedingly competitive manufacturing sectors, such as the automotive and aerospace industries, product quality and time to market can be critical factors in a customer's success. Since our core line of products plays a mission-critical role in improving product design and manufacturing efficiency, it is on these products that we intend to focus our development, sales and marketing efforts going forward."
Bracking said a clear indication of the strength of PlanetCAD's core product line was the recent adoption of the Company's PrescientQA software suite by PSA Peugeot-Citroen and the Renault Group. These license agreements have established PlanetCAD as the dominant provider of QDM solutions within the French automotive market. Bracking added that management expects these agreements to yield revenue in this year's second fiscal quarter.
"We have established a very strong foothold in several key European markets and we have the endorsement of some of the world's leading original equipment manufacturers," Bracking said. "We intend to leverage these relationships as we pursue several promising opportunities in both Asian and domestic markets."
In recent weeks, PlanetCAD has taken several steps to strengthen its senior management team. Earlier today, the Company named Joy Sullins as its new chief financial officer. Additionally, the Company has recently added Craig Berry as vice president of sales and Regina Morton as director of marketing.
INCOME STATEMENT RECAP (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
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Revenue:
License $ 88 $ 84
Services & Other 392 69
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Total Revenue 480 153
Cost of sales:
License 75 8
Services & Other 243 21
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Total Cost of Sales 318 29
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Gross profit (loss) 162 124
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Operating Expense:
Sales & Marketing 535 323
Research & Development 1,497 792
General & Administrative 1,042 410
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Total operating expenses 3,074 1,525
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Earnings (loss) from Operations (2,912) (1,401)
Other income, net 241 -
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Net income (loss) from
Continuing Operations $ (2,671) $ (1,401)
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Gain (loss) from discontinued,
operations net of tax 447 (57)
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Net Earnings (loss) (2,224) (1,458)
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Earnings (loss) per share,
basic and diluted
Continuing operations $ (0.22) $ (0.13)
Discontinued operations 0.04 (0.01)
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Net earnings (loss) (0.18) (0.14)
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Weighted average shares 12,406 10,344
BALANCE SHEET DATA
(In thousands)
March 31, December 31,
2001 2000
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(Unaudited)
Working capital $ 12,830 $ 14,892
Total assets $ 17,662 $ 22,697
Total liabilities $ 2,546 $ 5,366
Stockholders' equity $ 15,116 $ 17,331