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MRO Software Reports Second Quarter Results

  • 16 April, 2004 13:50

<p>For Immediate Release</p>
<p>MRO SOFTWARE REPORTS SECOND QUARTER RESULTS</p>
<p>Vertical Solutions Drive MAXIMO Results</p>
<p>BEDFORD, Mass., April 16, 2004 – MRO Software, Inc. (Nasdaq: MROI), the leading provider of strategic asset management solutions, today announced results for the Company’s second quarter ended March 31, 2004.</p>
<p>Total revenues for the second quarter were $44.6 million compared with $39.4 million for the second quarter last year, an increase of 13 percent. On a GAAP basis, the Company reported net income for the second quarter of $1.4 million or $0.05 per diluted share, compared with a net loss of $0.2 million or $0.01 per share for the second quarter of fiscal 2003.</p>
<p>Pro forma net income (see Schedule A) for the second quarter was $2.0 million, or $0.08 per diluted share compared with pro forma net income of $0.5 million, or $0.02 per diluted share for same quarter last year. Pro forma results are adjusted for the amortization of acquired technology and other intangibles and the related tax effects.</p>
<p>For the second quarter, revenues from software license sales were $11.5 million, compared with $7.7 million for the same quarter last year, an increase of 49 percent. Support and services revenues were $33.2 million for the second quarter, compared with $31.7 million for the same quarter last year, an increase of 5 percent.</p>
<p>During the second quarter, the Company sold 215 software licenses. Customers across a range of industries and geographies purchased MRO Software products during the quarter including: ABB Global, Aramark, Aventis Pharma, China National Offshore Oil Company (CNOOC), Cornell University, Fort Worth Water Department, Honda Manufacturing, National Park Service, Sarasota County Utilities, Seagate, State of Michigan, Scottish and Southern Energy, Taylor Woodrow Construction, Thames Water International Business Systems, The British Library, U.S. Army, U.S. Department of Energy, U.S. Department of Defense, U.S. Navy and the University of Western Australia.</p>
<p>The balance sheet as of March 31, 2004 contained $96.5 million in cash and marketable securities and no long-term debt. For the second quarter, deferred revenue increased to $32.1 million, and days sales outstanding (DSO) improved to 62 days.</p>
<p>"We continue to focus and execute on our two most important initiatives - industry solutions and MAXIMO 6," said Chip Drapeau, president and CEO, MRO Software. "With our industry-specific MAXIMO solutions we are able to differentiate MAXIMO from the competition and drive deeper into our core markets. At the same time, our investment in MAXIMO 6 will deliver the next generation of functionality for our traditional customer base, and open the door into new markets, impacting our performance in calendar 2005."</p>
<p>“I’m pleased with the financial strength of the Company,” said Peter Rice, executive vice president and CFO, MRO Software. “During the quarter we reduced DSO and generated more than $6 million in cash to bolster our already strong balance sheet. As a result, we are well positioned to fund our current and future growth initiatives.”</p>
<p>Rice continued, “For fiscal year 2004, the Company reaffirms its expectation for earnings to grow into the range of $0.30-$0.40 per share on a GAAP basis or $0.40-$0.50 per share on a pro forma basis. These expected earnings are based on revenue growth of approximately 5 percent above fiscal 2003 results. Specifically, for the third quarter of fiscal 2004, we expect revenues to be in the range of $45 to $47 million, and we expect earnings to be in the range of $0.08 to $0.10 per share on a GAAP basis, and between of $0.10 to $0.12 per share on a pro forma basis.”</p>
<p>Expected results on a pro forma basis are adjusted for the amortization of acquired technology and other intangibles and the related tax effects.
The Company conducted a conference call to discuss the quarter’s results on Thursday, April 15. A webcast of the call is available at: www.mro.com/investor. A transcript of the call will be promptly archived on the Investor Relations portion of the Company’s website, and may be found at: www.mro.com/investor.</p>
<p>About MRO Software, Inc.
MRO Software is the leading provider of strategic asset management solutions. The Company’s integrated suite of applications optimizes performance, improves productivity and service levels and enables asset-related sourcing and procurement across the entire spectrum of strategic assets.</p>
<p>The Company’s asset management solutions allow customers to manage the complete lifecycle of strategic assets including: planning, procurement, deployment, tracking, maintenance and retirement. Using MRO Software’s solutions customers improve production reliability, labor efficiency, material optimization, software license compliance, lease management, warranty and service management and provisioning across the asset base.</p>
<p>MRO Software (Nasdaq: MROI) is a global company based in Bedford, Mass., with approximately 900 employees, 10,000 customers and more than 260,000 end-users. The Company markets its products through a direct sales organization in combination with a network of international distributors. MRO Software has sales offices throughout North America, Europe, Asia/Pacific and Latin America. Additional information on MRO Software can be found at http://www.mro.com.</p>
<p>Forward-Looking Statements.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company’s actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include, among other things, continued sluggishness in IT spending and stagnation in the market for our products, difficulties or delays in the development or deployment of our industry-specific offerings, delayed sales of our MainControl products in anticipation of new releases, volatility in results as a function of a small number of large license transactions, slower than expected benefits from our alliance partner program, and those factors discussed in the Section entitled “Factors Affecting Future Performance” in our Quarterly Report on Form 10-Q for the quarter ended December 31, 2003.
# # #</p>
<p>MAXIMO® and MAXIMO MainControl® are registered trademarks, and MRO SoftwareTM is a trademark, of MRO Software, Inc.</p>
<p>For further information, please contact:
Rochelle Vincent
MRO Software
Phone: + 61 7 3266 8043
Email: rochelle.vincent@mro.com</p>
<p>Fiona Martin
Max Australia
Phone: +61 2 9954 3492
Email: fiona.martin@maxaustralia.com.au</p>
<p>Should you no longer wish to receive messages on financial announcements from MRO Software, please send a reply e-mail with the subject matter UNSUBSCRIBE MRO Software financial announcements.</p>

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