SDRC Reports $106 Million in Revenue
23 October 2000
SDRC Reports $106 Million in Revenue
CINCINNATI--Oct. 23, 2000--SDRC , a global supplier of e-business collaboration solutions for the product lifecycle, today announced its results for the third quarter of 2000. Revenues totaled $105.6 million compared to $108.9 million last year. Net income was $0.3 million, or $0.01 per share, compared to $2.5 million, or $0.07 per share, last year.For the nine months ending September 30, 2000, revenue was $331.9 million compared to $328.1 million last year. Net income was $12.9 million, or $0.35 per share, versus $23.3 million, or $0.62 per share, for the same period last year.
"While our results were disappointing, we are encouraged by the increasing level of new business opportunities," stated Bill Weyand, chairman and CEO. "SDRC was unable to close several large contracts in our September quarter that had been in the final customer funding process for the past three to five months. In all cases, our products were selected in competitive evaluations to replace well-known competitors in the collaborative product commerce market."
Mr. Weyand elaborated, "We continue to be challenged in understanding the complex approval and funding process in increasingly larger transactions with major enterprise-wide global operations. We are learning from these experiences, and expect to be rewarded with faster contract approvals in the quarters ahead. We are pleased with our sales training and retention efforts, but more work is necessary to improve all our operations to better address customer funding cycle issues."
"Already in October, SDRC has received significant orders from Boeing, Ford, General Motors, Matra British Aerospace and Thiokol. In addition, we announced this morning a new strategic partnership with Oracle Corporation. The partnership includes joint marketing and sales initiatives, and is focused on extending our leadership in the product knowledge management and e-business integration markets. Our Metaphase(R) and Accelis(TM) products were recognized by Oracle as the preferred product to support the growing demand for e-business collaborative solutions and business-to-business exchanges. SDRC looks forward to working closely with Oracle to grow each of our market opportunities. In summary, we remain optimistic about the direction and growth potential of our Metaphase and Accelis product lines, and our other major e-business initiatives."
SDRC will hold a conference call at 5:00 P.M. Eastern Time today. The dial-in number is 312/470-7061, the pass code is "SDRC," and the leader is "Kevin Morrow." A replay of the call will be available until 5 P.M. Eastern Time Friday, October 27 by dialing 800/627-9591 or 402/220-0237. The conference call can also be accessed live at www.streetevents.com and www.streetfusion.com .
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, including 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 Forms 10-K and 10-Q.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Revenue:
Licenses $ 32,932 $ 42,416 $ 115,617 $ 135,208
Maintenance
and services 72,652 66,491 216,276 192,881
--------- --------- --------- ---------
Total revenue 105,584 108,907 331,893 328,089
Cost of revenue 49,406 51,539 150,130 138,722
--------- --------- --------- ---------
Gross profit 56,178 57,368 181,763 189,367
Operating expenses:
Selling and
marketing 30,491 30,505 88,253 91,203
Research and
development 22,132 16,965 63,778 49,370
General and
administrative 5,104 4,424 14,946 13,730
In-process
research and
development 0 2,350 0 2,350
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Total operating
expenses 57,727 54,244 166,977 156,653
--------- --------- --------- ---------
Operating income (loss) (1,549) 3,124 14,786 32,714
Other income 2,174 1,464 6,359 4,899
--------- --------- --------- ---------
Income before
income taxes 625 4,588 21,145 37,613
Income tax expense 329 2,051 8,229 14,271
--------- --------- --------- ---------
Net income $ 296 $ 2,537 $ 12,916 $ 23,342
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income per share $ .01 $ .07 $ .35 $ .62
Common and common
equivalent shares 37,771 37,469 37,045 37,578
CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, December 31,
2000 1999
------------- ------------
(unaudited)
Assets:
Cash and cash equivalents $140,017 $121,507
Marketable securities 17,569 12,003
Trade accounts receivable 93,686 91,288
Other accounts receivable 7,491 7,779
Prepaid expenses 9,167 10,442
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Total current assets 267,930 243,019
Marketable securities 8,585 11,174
Property and equipment, net 24,684 23,601
Marketable software costs, net 60,605 60,832
Goodwill and other intangibles 49,031 42,164
Other assets 9,219 7,759
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Total assets $420,054 $388,549
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-------- --------
Liabilities and shareholders' equity:
Current liabilities $146,186 $129,947
Other long-term liabilities 7,565 8,685
Shareholders' equity 266,303 249,917
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Total liabilities and
shareholders' equity $420,054 $388,549
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About SDRC
SDRC (Structural Dynamics Research Corporation) is a leading global provider of e-business collaboration solutions for the product lifecycle. The Company's products address the areas of e-Mechanical Design Automation (e-MDA), e-Product Knowledge Management (e-PKM), e-Collaborative Products (e-CP), and e-Business Integration (e-BI). Coupled with process engineering and consulting services, the Company's solutions facilitate innovation through collaboration, enabling industry leaders to optimize product development early in the design process, increase productivity, and significantly improve time-to-market. SDRC employs more than 2,500 people worldwide, with 77 offices in 18 countries throughout North America, Europe, and Asia/Pacific. www.sdrc.com
Note to Editors: SDRC and Metaphase are registered trademarks, and Accelis is a registered trademark of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders.