SDRC Anticipates Revenues and Earnings to be Below Expectations for Q3
6 October 1999
SDRC Anticipates Revenues and Earnings to be Below Expectations for the Third Quarter
CINCINNATI--Oct. 6, 1999--SDRC , a leading global supplier of enterprise product development solutions and developer of I-DEAS(R) and Metaphase(R) Enterprise(TM) product data management (PDM) software, today announced that it anticipates September quarter 1999 revenues and earnings will be less than analysts' consensus estimates. SDRC estimates that its third quarter revenues will be approximately $109 million compared to the current analysts' consensus estimate of $116 million. Earnings per average common share (exclusive of non-recurring, acquisition-related charges) will be approximately $0.12. A complete earnings report is scheduled to be released on October 20.Total revenue from SDRC's market leading Metaphase product data management software exceeded $30 million and grew about 23% compared to last year's third quarter, but global softening in the mechanical design software market limited SDRC's I-DEAS revenue growth to just 2% compared to the same quarter last year.
Year-to-date, total Metaphase revenues are estimated to be up 24% and I-DEAS revenues are up 11%. SDRC was awarded several major I-DEAS license contracts from: Ford Motor Company, Ludwig Engel KG and Mazda Motor Corporation; and major Metaphase contracts from: Ford Motor Company, Visteon, United Defense, UK Ministry of Defense, Toshiba Corporation, Fokker Services B.V., and Knorr-Bremse for Metaphase.
SDRC's Chairman, President and CEO, William J. Weyand, stated, "This announcement is disappointing relative to the success we have demonstrated in the past twelve months. Our Metaphase solution is the clear leader in the product data management market. We remain positive about our outlook for the growth of Metaphase, particularly led by its expanded adoption and deployment in the automotive industry."
SDRC will hold a conference call at 9:00 A.M. Eastern Standard Time today. The dial-in number is 888/933-2942 and the pass code is "SDRC." A replay of the call will be available for 24 hours by dialing 800/933-2942 or 402/530-8095.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties which could cause the actual results to differ materially from those projected, concluding the timely availability and acceptance of new products, global economic uncertainties, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's most recent reports on Form 10-K and 10-Q.
About SDRC
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(R) product suite of integrated CAD/CAM/CAE software, and the market-leading PDM software, Metaphase(R) Enterprise(TM), which is developed, marketed and supported by SDRC's Metaphase Technology Division. SDRC employs more than 2,500 people worldwide, with 77 offices in 18 countries throughout North America, Europe, and Asia/Pacific.
http://www.sdrc.com/
Note to Editors: SDRC, I-DEAS, and Metaphase are registered trademarks, and Metaphase Enterprise is a trademark of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders.