SDRC Reports Net Income Up 110% - EPS $0.29 I-DEAS License Revenue +24%
20 July 1999
SDRC Reports Net Income Up 110% - EPS $0.29 I-DEAS License Revenue +24%
CINCINNATI--July 19, 1999--SDRC , a leading global supplier of enterprise product development solutions and developer of I-DEAS(R) and Metaphase(R) Enterprise(TM) software, today reported revenues totaling $111.1 million for the quarter ended June 30, 1999, a 17% increase over the same quarter last year. Operating income grew 245% to $15.1 million form $4.1 million while net income was $10.8 million, or $0.29 per share, compared to $5.1 million, or $0.14 per share, last year. License revenues grew 23%, including a 24% increase in I-DEAS license revenues.For the six months ended June 30, 1999, SDRC's revenue was $219.2 million, up 18% compared to the first six months of 1998. Operating income year to date rose 92% to $29.6 million from $15.4 million, while net income was $20.8 million, or $0.55 per average share outstanding, compared to net income of $15.4 million, or $0.41 per average share outstanding, for the same period last year.
"I am very proud of our accomplishments this quarter," stated Bill Weyand, SDRC's chairman, president and chief executive officer. "This marks the fourth consecutive quarter of better than expected financial results. We achieved these results with strong license revenue growth from our core I-DEAS product combined with responsible cost management. Our Metaphase product suite posted another strong quarter, helping to maintain its market-leading position."
SDRC posted substantial I-DEAS orders in the quarter from Ford Motor Company, Dana Corporation, Viessmann Werke, Toshiba, and Mannesmann Dematic while major Metaphase license orders in the quarter included ABB Business Services, Renault, Yazaki, Toshiba, U.S. Air Force, and Caterpillar.
Highlights in the quarter include the kick-off of our Metaphase Executive Conference series sponsored by Sun Microsystems , the opening of our Aerospace Center of Excellence, and shipment of I-DEAS Master Series 7. "We are committed to providing our client partners with the right tools and ExperTeam consulting services to continually improve their competitiveness," stated Mr. Weyand. "Our customers seek best-in-class technology, but even more so these industry leaders demand a partner that understands their product-related challenges and can offer solutions for their success. SDRC answers the call on both fronts."
"SDRC is well positioned to continue to outpace the industry growth rates, for both Mechanical Design Automation and Enterprise Product Data Management, in 1999. As the internet increases the competitiveness of all markets worldwide, SDRC's attention to accelerated product innovation is beneficial to our customers, our employees and our shareholders."
SDRC will host a conference call at 5:00pm EST today to discuss the results of the quarter. The dial-in number is 630/395-0017. A replay of the call will be available until 5:00pm EST on Friday, July 23. Domestic callers can dial 888/482-2247 and international callers can dial 402/998-1368.
SDRC (Structural Dynamics Research Corporation) is one of the world's leading providers of enterprise product development solutions with its suite of mechanical design automation software and product data management software. The Company's products, coupled with engineering and consulting services, help manufacturers optimize product development early in the design process, enabling them to reduce cost and cycle time while significantly improving quality and time to market. SDRC provides the award-winning I-DEAS product suite of integrated CAD/CAM/CAE software, and the market-leading PDM software, Metaphase Enterprise, which is developed, marketed and supported by SDRC's Metaphase Technology Division. SDRC employs more than 2,500 people worldwide, with 75 offices in 17 countries throughout North America, Europe, and Asia/Pacific.
Except for historical information contained herein, the matters discussed in this news release may include forward-looking statement that involve risks and uncertainties. SDRC cautions that the actual results could differ materially from these statements depending upon a number of factors as described from time-to-time in reports filed by SDRC with the Securities and Exchange Commission, including SDRC's most recent Forms 10-K and 10-Q.
STRUCTURAL DYNAMICS RESEARCH CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
1999 1998 1999 1998
-------- -------- -------- --------
Revenue:
Licenses $ 46,950 $ 38,028 $ 92,792 $ 79,429
Maintenance and services 64,103 57,114 126,390 106,825
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Total revenue 111,053 95,142 219,182 186,254
Cost of revenue 44,973 38,943 87,183 73,430
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Gross profit 66,080 56,199 131,999 112,824
Operating expenses:
Selling and marketing 29,848 30,033 60,698 55,503
Research and development 16,706 17,162 32,405 33,216
General and administrative 4,379 4,610 9,306 8,684
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Total operating expenses 50,933 51,805 102,409 97,403
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Operating income 15,147 4,394 29,590 15,421
Other income 1,974 3,041 3,435 6,687
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Income before income taxes 17,121 7,435 33,025 22,108
Income tax expense 6,335 2,322 12,220 6,667
-------- -------- -------- --------
Net income $ 10,786 $ 5,113 $ 20,805 $ 15,441
-------- -------- -------- --------
-------- -------- -------- --------
Net income per share $ .29 $ .14 $ .55 $ .41
Common and common
equivalent shares 37,649 37,617 37,622 37,499
STRUCTURAL DYNAMICS RESEARCH CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, December 31,
1999 1998
--------- ----------
(Unaudited)
Assets:
Cash and cash equivalents $143,056 $100,581
Marketable securities 13,477 11,787
Trade accounts receivable 85,673 92,169
Other accounts receivable 10,556 8,956
Prepaid expenses 10,000 12,102
-------- --------
Total current assets 262,762 225,595
Marketable securities 14,299 9,937
Property and equipment, net 24,487 25,674
Marketable software costs, net 41,073 36,237
Goodwill and other intangibles 30,901 32,886
Other assets 9,555 10,425
-------- --------
Total assets $383,077 $340,754
-------- --------
-------- --------
Liabilities and shareholders' equity:
Current liabilities $135,114 $117,108
Other long-term liabilities 8,171 7,872
Shareholders' equity 239,792 215,774
-------- --------
Total liabilities and
shareholders' equity $383,077 $340,754
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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.