SDRC Reports 19% Revenue Growth -- EPS $0.27
20 April 1999
SDRC Reports 19% Revenue Growth -- EPS $0.27
CINCINNATI--April 19, 1999--SDRC , a leading global supplier of enterprise product development solutions and developer of I-DEAS(TM) and Metaphase(R) Enterprise(TM) software, today reported revenues totaling $108.1 million for the quarter ended March 31, 1999, a 19% increase over the same quarter last year. Operating income grew 31% to $14.4 million from $11.0 million, while net income was $10.0 million, or $0.27 per share, compared to $10.3 million, or $0.28 per share, last year. Non-operating other income bolstered net income in last year's first quarter.License revenues grew 11%, fueled by a solid 76% increase from the Metaphase product line. SDRC's newly structured ExperTeam consulting services revenues were up 21%, while maintenance revenues from all product lines increased 30%. A number of I-DEAS license orders exceeding $1 million each were received from Xerox, Hitachi, and Ford Motor Company, among others. Nine Metaphase license orders of $500,000 each were booked in the quarter just ended, including Lockheed Martin, Tusas Aerospace, Renault, Graco, Xerox, Mazda, Toshiba, LM Ericsson Data AB, and United Defense.
"This was our third consecutive quarter of strong financial performance," stated Bill Weyand, chairman, president and chief executive officer. "We continue to see a broad acceptance of our enterprise product development solutions vision across our entire customer base."
"We are proud of our new customer agreements announced in the quarter, including Metaphase standardization decisions by ABB Power Generation, Ethicon Endo-Surgery and Toyota Motor Corporation," stated Mr. Weyand. During the quarter, Metaphase became the first and only product to move into GartnerGroup's PDM leadership quadrant. "This announcement by a leading industry analyst reinforces the market's acceptance of our enterprise product development strategy," he continued.
"SDRC also announced today that we will begin shipping I-DEAS 7 in the second quarter, a major step forward in delivering scalable, web-centric MDA and full enterprise product development solutions."
On the balance sheet, as of March 31, 1999, cash and marketable securities totaled $166.0 million compared to $122.3 million at December 31, 1998. Days sales outstanding at quarter-end were 70 -- two days better than the preceding quarter and an 18 day improvement compared to the same quarter last year. Deferred revenues reached $68.9 million, a new Company high and an increase of $23.2 million from December 31, 1998. SDRC remains debt-free.
SDRC will host a conference call at 5:00 p.m. EST today to discuss the results of the quarter. The dial-in number is 303/205-0066. A replay of the call will be available until noon on Sunday, April 25. Domestic callers can dial 888/892-3286 and international callers can dial 615/770-7209.
SDRC (Structural Dynamics Research Corporation) is one of the world's leading providers of Enterprise Product Development Solutions through its suite of Mechanical Design Automation software, Information and Product Data Management software, and related consulting and engineering services. The Company's products and services help manufacturers improve innovation and optimize the product development process, enabling them to reduce product cost and cycle time while significantly improving quality and time to market. SDRC employs 2,400 people and has 75 offices in 17 countries throughout the Americas, Europe, and Asia/Pacific.
Except for historical information contained herein, the matters discussed in this news release may include forward-looking statements that involve risks and uncertainties. SDRC cautions that the actual results could differ materially from these statements depending upon a number of important factors as described from time-to-time in reports filed by SDRC with the Securities and Exchange Commission, including SDRC's most recent reports on Form 10-K and 10-Q.
SDRC - CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended March 31,
1999 1998
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Revenue:
Licenses $ 45,842 $ 41,401
Maintenance and services 62,287 49,711
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Total revenue 108,129 91,112
Cost of revenue 42,210 34,487
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Gross profit 65,919 56,625
Operating expenses:
Selling and marketing 30,850 25,470
Research and development 15,699 16,054
General and administrative 4,927 4,074
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Total operating expenses 51,476 45,598
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Operating income 14,443 11,027
Other income 1,461 3,646
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Income before income taxes 15,904 14,673
Income tax expense 5,885 4,345
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Net income $ 10,019 $10,328
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Net income per share $ .27 $ .28
Common and common equivalent shares 37,548 37,430
SDRC - CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, December 31,
1999 1998
--------- ---------
(unaudited)
Assets:
Cash and cash equivalents $ 142,655 $ 100,581
Marketable securities 13,513 11,787
Trade accounts receivable 84,638 92,169
Other accounts receivable 5,726 8,956
Prepaid expenses 12,339 12,102
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Total current assets 258,871 225,595
Marketable securities 9,792 9,937
Property and equipment, net 24,385 25,674
Marketable software costs, net 38,312 36,237
Goodwill and other intangibles 32,015 32,886
Other assets 8,983 10,425
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Total assets $ 372,358 $ 340,754
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Liabilities and shareholders' equity:
Current liabilities $ 139,414 $ 117,108
Other long-term liabilities 8,010 7,872
Shareholders' equity 224,934 215,774
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Total liabilities and
shareholders' equity $ 372,358 $ 340,754
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http://www.sdrc.com/Note to Editors: SDRC and Metaphase are registered trademarks, I-DEAS and Metaphase Enterprise are trademarks of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders.