SDRC Reports Record Quarterly Revenue
CINCINNATI--July 18, 2001--SDRC today announced its results for the second quarter of 2001, which exceeded consensus financial analyst estimates for both revenue and earnings. Revenues for the June quarter totaled $121.1 million, up 3% compared to $118.1 million last year, and a new company high. Net income for the quarter was $8.9 million, or $0.23 per share, compared to $8.3 million, or $0.23 per share last year.Metaphase(R) license revenue was up 46% over the same quarter last year, while total Metaphase revenue of $47.1 million was up 22% and comprised about 40% of the company's business for the quarter. Significant Metaphase license orders were received from Lear, Vought, Seagate, Giat Industries, and Mazda.
For the six months ended June 30, 2001, SDRC's revenue was $234.0 million, up 3% compared to the first six months of 2000, while net income was $14.7 million, or $0.39 per share, compared to $12.6 million, or $0.34 per share for the last year to date. Total Metaphase revenue for the six months ended June 30, 2001 was $91.9 million, up 23% over the same period last year.
"While some cite declining economic conditions, SDRC has continued to accelerate Metaphase license growth rates while gaining market share due to new web-native industry solutions and continually improving sales execution," stated Bill Weyand, chairman and CEO. "As we are sensitive to the global manufacturing slowdown and the difficulty of our ability to forecast the timing of large orders, we are nonetheless enthusiastic that our recent launch of TeamCenter(TM) is creating a significant number of new opportunities for SDRC in all of our geographies. As stated before, 2000 was a transition year for SDRC, and we have regained the undisputed market leadership position for collaborative product commerce (CPC) and are the leading provider of Product Lifecycle Management (PLM) solutions as well."
Mr. Weyand continued, "Evidence of our successful transition and regained leadership was SDRC's launch in May of the industry's first collaborative applications suite for managing the total product life cycle. TeamCenter is completely new, and is the most up-to-date technology offering in the PLM market. According to industry analyst reports, the TeamCenter platform is two or three years ahead of our nearest competitor. SDRC's TeamCenter provides the world's manufacturing leaders with an opportunity to acquire and leverage next-generation collaboration capabilities for design, requirements, projects, and the product/supply chain. SDRC is truly the partner of choice and the only proven scalable solutions provider for enterprise clients with over 1000 users."
"In summary," noted Mr. Weyand, "we are excited about our pending acquisition by EDS Corporation . Our companies share a common commitment to customer excellence and in providing total solutions for the PLM marketplace. Our cultures are similar, our visions are aligned, and SDRC's talented personnel will be a great asset to the EDS organization."
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenue:
Licenses $ 44,248 $ 43,915 $ 85,620 $ 82,685
Maintenance and
services 76,895 74,194 148,348 143,624
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Total revenue 121,143 118,109 233,968 226,309
Cost of revenue 49,128 50,702 97,742 100,724
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Gross profit 72,015 67,407 136,226 125,585
Operating expenses:
Selling and marketing 32,020 29,811 61,507 57,762
Research and
development 23,529 22,506 46,282 41,646
General and
administrative 5,622 5,096 11,583 9,842
In process research
and development 250 0 250 0
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Total operating
expenses 61,421 57,413 119,622 109,250
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Operating income 10,594 9,994 16,604 16,335
Other income 1,276 3,472 3,035 4,185
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Income before income
taxes 11,870 13,466 19,639 20,520
Income tax expense 3,020 5,185 4,961 7,900
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Net income $ 8,850 $ 8,281 $ 14,678 $ 12,620
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-------- -------- -------- --------
Net income per diluted
share $ .23 $ .23 $ .39 $ .34
Common and common
equivalent shares 38,856 36,693 37,627 36,662
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, December 31,
2001 2000
-------- --------
(unaudited)
Assets:
Cash and cash equivalents $188,062 $139,313
Marketable securities 4,329 16,779
Trade accounts receivable 101,619 108,816
Other accounts receivable 5,478 3,451
Prepaid expenses 12,380 8,446
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Total current assets 311,868 276,805
Marketable securities 686 4,661
Property and equipment, net 23,269 24,529
Marketable software costs, net 55,641 56,943
Goodwill and other intangibles 10,101 5,994
Other assets 11,753 8,028
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Total assets $413,318 $376,960
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Liabilities and shareholders' equity:
Current liabilities $158,776 $150,044
Other long-term liabilities 7,808 7,632
Shareholders' equity 246,734 219,284
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Total liabilities and shareholders' equity $413,318 $376,960
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