Moldflow Announces Record First Quarter Results
26 October 2000
Moldflow Announces Record First Quarter Results; Reports 70% Revenue Growth and 85% Software License Growth
WAYLAND, Mass.--Oct. 25, 2000--Moldflow Corporation , the world leader in process-wide solutions for optimizing the design and manufacture of plastic products, today reports record results for its first fiscal quarter ended September 30, 2000.Revenue for the first quarter of fiscal 2001 marked the largest in Moldflow's history at $8.8 million, up 70% over the corresponding quarter of fiscal 2000.
Net income for the first quarter of fiscal 2001 included non-cash amortization expenses for goodwill and other intangible assets acquired of $367,000 resulting from the acquisition of C-MOLD, a principal competitor, completed during the fourth quarter of fiscal 2000. Excluding these charges, pro forma net income for the quarter would have been $860,000, or $0.09 per diluted share, a twelve-fold increase over the same period of the prior year. Net income for the first quarter of fiscal year 2001 was $534,000 or $0.06 per diluted share, an eight-fold increase over net income of $69,000 or $0.01 per diluted share, recorded in the same period of the prior year. Net income per diluted share and pro forma net income per diluted share amounts are based on 9.7 million and 6.3 million weighted average shares outstanding in the quarterly periods ended September 30, 2000 and October 2, 1999, respectively.
Revenue from software licenses for the first quarter of fiscal 2001 increased 85% to $5.2 million, when compared to $2.8 million recorded in the first quarter of fiscal 2000. Services revenue, including revenue from maintenance and support contracts, increased 53% to $3.6 million in the quarter, compared to $2.4 million in the corresponding quarter of fiscal 2000. On a regional basis, revenues in the USA represented 32% of total revenues for the first fiscal quarter of 2001, while Europe and Asia represented 39% and 29%, respectively.
Moldflow generated $1.0 million in cash flow from operations and invested $1.0 million in capital expenditures, including expenditures related to the move to, and expansion of, the corporate headquarters in Wayland, MA, which occurred during the quarter.
The company had a total of 238 employees at September 30, 2000, of which 39 were sales representatives, 71 were in research and development, and the remainder were employed in sales management, marketing, customer support and general and administrative functions.
"Our continued strong global sales are evidence of our world-class technologies and expertise," says Marc Dulude, Moldflow president and CEO. "Manufacturers are recognizing the competitive advantages that can be gained as a direct result of implementing our products. During this quarter, Moldflow is extremely proud to have been awarded a US patent for its Dual Domain(TM) technology -- the foundation of Moldflow Plastics Advisers(R) (MPA(R)) and its FUSION(TM) simulation products. The patent not only protects Moldflow's proprietary technology innovations, but also reaffirms our strong leadership position and commitment to developing the best software for the plastic injection marketplace. The company also released two new versions of Moldflow Plastics Xpert(TM), MPX 2.0 and iMPX 1.0. MPX(TM) software allows process engineers and molders to quickly optimize machine set up, reduce cycle times, and monitor and correct molding processes during production. The technology facilitates faster set up times, reduced scrap rates and costs, as well as improved product quality and consistent production yields. The iMPX(TM) technology extends MPX to allow internet-based monitoring of production data."
Moldflow's results reflected growth during the quarter from sales to companies across numerous lines of business, including consumer products, automotive, electronics, telecommunications and materials suppliers. Significant orders were received during the quarter from companies such as LifeFitness, Kia Motors, Molex, Hellerman Tyton, Heyco Products, Moulinex, Solectron, Sony Corporation, Mitsubishi Heavy Industries, Philips, Hoover, Atofina and the Blaupunkt-Bosch Group. In total, over one hundred new customers were added during the quarter.
Also of note, the French Plasturgy Federation adopted a plan to equip each of the French institutions of higher learning with a focus in plastics engineering with the Company's Moldflow Mold Adviser(TM) and Moldflow Plastics Insight(TM) products and acquired more than two hundred fifty new licenses of each product. Moldflow, which participates in a number of similar strategic partnerships with university and industry associations, believes that the education of users in the university environment will ultimately result in expanded adoption of plastics simulation solutions across the plastic industry.
"As the intensity of time to market increases, so too are the demands for higher quality products and lower product costs," notes Dulude. "We are confident that our combined plastic injection molding expertise and state of the art products help manufacturers around the world generate the products they need, on time, at reduced costs. We are proud of the fact that our growth rates on revenues and earnings far exceed those of the other companies in our industry, confirming our belief that our customers recognize the value our products and services provide."
The unaudited condensed consolidated statement of income and balance sheet for the first fiscal quarter ended September 30, 2000 follow.
Moldflow webcasts our conference calls to assure the broad dissemination of information in real time. To access today's conference call, which is scheduled for 5:00 p.m. US Eastern Time, log on to the company's web site 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 November 24, 2000.
Moldflow Corporation
Unaudited Condensed Consolidated Statement of Income
(in thousands, except per share data)
Three months ended
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Sep 30, Oct 02,
2000 1999
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Revenue:
Software licenses $ 5,222 $ 2,823
Services 3,602 2,358
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Total revenue 8,824 5,181
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Costs and expenses:
Cost of software licenses revenue 341 169
Cost of services revenue 343 236
Research and development 1,587 835
Selling and marketing 4,291 2,698
General and administrative 1,385 1,076
Litigation - 280
Amortization of goodwill & other intangible
assets 367 -
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Total operating expenses 8,314 5,294
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Income (loss) from operations 510 (113)
Interest income (expense), net 371 (1)
Other income (loss), net 35 (34)
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Income (loss) before income taxes 916 (148)
Provision (benefit) for income taxes 382 (217)
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Net income $ 534 $ 69
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Net income per common share:
Basic $ 0.06 $ 0.20
Diluted $ 0.06 $ 0.01
Weighted average shares:
Basic 9,186 353
Diluted 9,698 6,292
Moldflow Corporation
Pro Forma Results (a)
(in thousands, except per share data)
Income (loss) from operations $ 877 $ (113)
Net income $ 860 $ 69
Net income per common share - diluted $0.09 $0.01
Weighted average shares - diluted 9,698 6,292
(a) The pro forma results exclude the amortization of goodwill and
other intangible assets.
Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheet
(in thousands)
Sep 30, June 30,
2000 2000
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Assets
Current assets:
Cash and cash equivalents $ 19,909 $ 27,259
Marketable securities 13,846 8,452
Accounts receivable, net 5,695 5,972
Prepaid expenses and other current assets 1,980 1,946
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Total current assets 41,430 43,629
Fixed assets, net 5,270 4,808
Intangible assets, net 1,870 1,994
Goodwill, net 6,662 6,684
Other assets 276 208
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Total assets $ 55,508 $ 57,323
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Liabilities and Stockholders' Equity
Current liabilities:
Current debt obligations $ 65 $ 68
Accounts payable 1,710 1,203
Accrued expenses 5,289 6,264
Deferred revenue 4,558 5,103
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Total current liabilities 11,622 12,638
Long-term debt 840 852
Other long-term liabilities 39 55
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Total liabilities 12,501 13,545
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Stockholders' equity:
Common stock 93 93
Additional paid-in capital 49,247 49,225
Accumulated deficit (7,726) (8,260)
Accumulated other comprehensive income 1,393 2,720
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Total stockholders' equity 43,007 43,778
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Total liabilities and stockholders' equity $ 55,508 $ 57,323
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