Moldflow Announces Record Fourth Quarter Results
9 August 2000
Moldflow Announces Record Fourth Quarter Results
LEXINGTON, Mass. - Moldflow Corporation , the world leader in process-wide solutions for optimizing the design and manufacture of plastic products, today reports record results for its fourth fiscal quarter and the fiscal year ended June 30, 2000.Revenue for the fourth quarter of fiscal 2000 marked the largest in Moldflow's history at $8.8 million, up 57.5% over the corresponding quarter of fiscal 1999. Net income for the quarter was $870,000, or $0.09 per diluted share, up over net income of $202,000, or $0.03 per diluted share, recorded in the same period of the prior year.
Net income for the quarter included non-recurring charges of $284,000 resulting from the acquisition of C-Mold, a principal competitor, completed during the quarter. Excluding these charges, which were comprised of acquired in-process research and development costs and facility closure costs, and excluding the non-cash amortization of goodwill and other intangible assets acquired, proforma net income for the quarter would have been $1.5 million, or $0.15 per diluted share. Net income per diluted share amounts are based on 9.6 million and 6.3 million weighted average shares outstanding in the quarterly periods ended June 30, 2000 and 1999, respectively.
Software license revenue for the fourth quarter of fiscal 2000 increased 61.3% to $5.5 million, when compared to $3.4 million recorded in the fourth quarter of fiscal 1999. Services revenue, including revenue from maintenance and support contracts, increased 50% to $3.3 million in the quarter, compared to $2.2 million in the corresponding quarter of fiscal 1999. Results for the quarter reflect continued strong growth in the Asia Pacific region where revenues grew 95% over the same quarter of the prior year due to strong customer demand in Japan and Korea and additional revenues resulting from the acquisition of C-Mold.
Revenue for the year ended June 30, 2000 was $27.4 million compared with $20.2 million reported for fiscal 1999, an increase of 35.4%. The company reported net income for the fiscal year ended June 30, 2000 of $3.5 million, or $0.48 per diluted share, compared to $481,000, or $0.08 per diluted share, during fiscal 1999. Excluding the above noted non-recurring and amortization charges, and the impact of an unusual gain recorded in the third quarter on the sale of an investment, proforma net income for the year ended June 30, 2000 was $2.6 million, or $0.36 per diluted share.
"We are extremely pleased with our performance this quarter," said president and chief executive officer Marc Dulude. "We realized significant growth in almost every area of our business. We announced strategic relationships with both Ferromatik Milacron and CACO Pacific, strengthening our position on the shop floor. Also, to considerable industry praise, we launched our e-business web site plasticszone.com, incorporating iMPA, our innovative pay-per-use application leveraging the Internet for plastics part design."
In commenting on plasticszone.com, Stephen Wolfe, publisher of the Computer Aided Design Report, noted, "Plasticszone.com is one of the most impressive Internet-based engineering sites I've seen yet. iMPA is a real expert system that provides users with helpful information about a technically sophisticated subject."
"Unquestionably, one of our biggest accomplishments this quarter, however," Dulude continued, "is the finalization of the acquisition of C-Mold. This acquisition immediately strengthened our R&D capabilities, a fact demonstrated by our first joint development release in June of C-Mold 2000.7. The addition of the C-Mold customer base, coupled with new customers added in the fourth quarter has increased our number of customers by more than 700 to over 3,200."
Notable orders were received during the quarter from companies such as IBM, Konica, Takagi Seiko, Culligan, and PASS. Additionally, many new orders were received for first time product purchases or expansion of previous installations. For instance, Medrad, Deutsch Commercial Products and Valeo acquired MPX, Nokia and Fiat further expanded their use of Moldflow products, and Fairchild invested in Moldflow's MPI suite of products.
"The pressure to get plastic parts to market quickly is intense. The investments being made in our technology are coming from all of the major industries that produce injection molded parts," commented Dulude, "which continues to validate our market strategy and product positioning. "
The condensed consolidated statement of income and balance sheet for the fourth quarter and the year ended June 30, 2000 follow.
Moldflow's conference call to discuss the fourth quarter results will be webcast live on August 8, 2000 at 5 p.m. US Eastern Standard Time on the company's web site, located at www.moldflow.com. The call is available in the Audio Presentations section on the Investor Information portion of the site. An archived version of the conference call will be available for replay on this site until September 8, 2000.
About Moldflow
Moldflow is the world leader in plastic simulation software used by designers and manufacturers to produce optimal plastic parts. Customers such as BASF, Baxter, BMW, Compaq, Dow Chemical, DuPont, Ford, GE Plastics, Hewlett-Packard, Lego, Mazda, Monsanto, Nypro, Toshiba, Toyota, Samsung, Sun Microsystems, and many others are using Moldflow technology to produce billions of injection molded parts each year. The automotive, aerospace, computer, consumer goods, and medical industries have incorporated Moldflow's easy to use, predictive applications throughout all phases of the injection molded plastic part design to manufacture processes to reduce product costs, accelerate time-to-market and optimize plastic part production. The company has employees worldwide and maintains its corporate headquarters in Lexington, MA. The company also has research and development facilities in Australia, Europe and Ithaca, NY and direct sales and marketing offices throughout the U.S., Europe and the Pacific Rim.
Moldflow Corporation
Unaudited Consolidated Statements of Income
(in thousands, except per share data)
Three months ended Year ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Revenue:
Software licenses $ 5,497 $ 3,408 $ 16,742 $ 12,238
Services 3,285 2,169 10,627 7,983
-------- -------- -------- --------
Total revenue 8,782 5,577 27,369 20,221
-------- -------- -------- --------
Costs and expenses:
Cost of software
licenses revenue 300 94 785 378
Cost of services
revenue 333 351 1,057 1,319
Research and
development 1,426 681 4,074 3,466
Selling and
marketing 4,321 2,532 13,495 9,673
General and
administrative 1,497 1,039 5,018 3,839
Litigation -- 470 785 620
Nonrecurring
charges 284 -- 284 --
Amortization of
intangible assets
and goodwill 311 -- 311 --
-------- -------- -------- --------
Total operating
expenses 8,472 5,167 25,809 19,295
-------- -------- -------- --------
Income from
operations 310 410 1,560 926
Interest income
(expense), net 482 (100) 427 (177)
Other income
(loss), net 78 (51) 1,717 (92)
-------- -------- -------- --------
Income before
income taxes 870 259 3,704 657
Provision for
income taxes -- 57 251 176
-------- -------- -------- --------
Net income $ 870 $ 202 $ 3,453 $ 481
-------- -------- -------- --------
-------- -------- -------- --------
Net income per
common share:
Basic $ 0.10 $ 0.62 $ 1.29 $ 1.82
Diluted $ 0.09 $ 0.03 $ 0.48 $ 0.08
Weighted average
shares:
Basic 9,138 328 2,667 265
Diluted 9,612 6,253 7,190 6,166
Moldflow Corporation
Unaudited Pro Forma Results (1)
(in thousands, except per share data)
Income from
operations $ 905 $ 410 $ 2,155 $ 926
Net income $ 1,465 $ 202 $ 2,612 $ 481
Net income per
common share -
diluted $ 0.15 $ 0.03 $ 0.36 $ 0.08
Weighted average
shares - diluted 9,612 6,253 7,190 6,166
(1) The pro forma results exclude the amortization of goodwill and
other intangible assets, nonrecurring charges, and an unusual gain of
$1.4 million, net of tax, recorded in the third quarter of fiscal 2000
on the sale of an investment.
Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
June 30, June 30,
2000 1999
Assets
Cash and investments $ 35,711 $ 1,240
Accounts receivable, net 5,972 4,444
Goodwill and other intangible assets,
net 8,678 -
Other assets 6,962 4,563
------------ -------------
Total assets $ 57,323 $ 10,247
------------ -------------
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Liabilities and Stockholders' Equity
Total liabilities $ 13,545 $ 8,977
Stockholders' equity 43,778 1,270
------------ -------------
Total liabilities and stockholders'
equity $ 57,323 $ 10,247
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