MRO Software’s latest results mixed
Bedford, MA -- Nov. 18, 2002 -- MRO Software Inc. produced revenues of $46.1 million for the company's fourth quart...
Bedford, MA — Nov. 18, 2002 — MRO Software Inc. produced revenues of $46.1 million for the company’s fourth quarter and $171.9 million for fiscal year 2002, ended Sept. 30, 2002.
Total revenues for the fourth quarter were $46.1 million, an 11% increase compared with $41.4 million for the prior quarter, and a decrease of 9% compared with $50.9 million for the fourth quarter last year.
Pro-forma net income for the fourth quarter was $2.6 million, or $0.11 per diluted share compared with pro-forma net income of $2.0 million or $0.08 per diluted share for the prior quarter and pro-forma net income of $1.8 million or $0.08 per diluted share for the fourth quarter of the prior year. Pro-forma net income is adjusted for the pre-tax effects of amortization of goodwill, other intangibles, and acquired technology, all of which are included in net income under generally accepted accounting principle (GAAP) results. (See Schedule A)
On a GAAP basis, the company reported a net loss for the fourth quarter of fiscal 2002 of $2.0 million or $0.08 per share, compared with a net loss of $1.8 million or $0.08 per share for the prior quarter, and a net loss of $2.0 million or $0.09 per share for the same quarter last year. On a GAAP basis for fiscal year 2002, the company reported a net loss of $10.6 million, or $0.46 per share compared with a net loss of $15.5 million or $0.70 per share for fiscal year 2001, an improvement of 32%.
Revenue for the year ended Sept. 30, 2002 was $171.9 million, compared with $185.5 million for the prior year, a decrease of 7%. Pro-forma net income was $5.4 million for the year, or $0.22 per diluted share compared with $2.4 million or $0.11 per diluted share for the prior year, an increase of more than 100%. Pro-forma net income is adjusted for the pre-tax effects of amortization of goodwill, other intangibles, and acquired technology and warrant expense.
For the fourth quarter, revenues from software license sales were $15.0 million, compared with $12.4 million for the prior quarter, an increase of 21% and compared with $19.1 million for the same quarter last year, a decrease of 22%. Support and services revenues were $31.0 million for the quarter, compared with $29.0 million for the prior quarter, an increase of 7% and compared with $31.8 million for the same quarter last year, a decrease of 3%.
For fiscal year 2002, software revenues were $49.0 million compared with $61.3 million for the prior year, a decrease of 20%. Services and support revenues were $122.8 million compared with $124.1 million last year, a decrease of 1%.
During the fourth quarter, the company sold more than 250 new licenses into a broad variety of industries. Customers that purchased MRO Software solutions during the quarter included: TXU Electric company, Grubb & Ellis, Exxon Mobil Venezuela, OXY, Inc (Occidental Petroleum Services, Inc), McKesson Corp, U.S. Department of the Interior, U.S. Army, Aberdeen Proving Ground, U.S. Navy, BP, Elcoteq, and Ericcson AB.
The balance sheet as of September 30, 2002 contained $67.8 million in cash and marketable securities and no long-term debt. This compares with fiscal year end 2001 cash and marketable securities of $48.4 million, representing a 40% increase in cash year-over-year. For the fourth quarter, deferred revenue was $27.6 million, and days sales outstanding (DSO) improved to 69 days from 72 days in the prior quarter.
“In what continues to be a tough IT spending environment, we were able to generate solid pro-forma earnings and increase our cash position this past year,” commented Chip Drapeau, president and CEO, MRO Software. “Adoption rates for MAXIMO 5 continue to grow and the acquisition of MainControl expands the breadth of our offerings while positively impacting our financial performance. As the market for Strategic Asset Management develops, we are very well positioned with a strong suite of solutions for a company’s complete range of critical assets.”
“This past quarter’s results were very strong, and the company increased cash and pro-forma earnings in a very difficult sales environment. Our strong balance sheet continues to provide a solid foundation for our move into Strategic Asset Management,” commented Peter Rice, executive vice-president and CFO, MRO Software.
“The ability to generate cash is always important, but in today’s economic climate, it’s critical. We’ve managed our costs and watched our bottom line, and as a result we’re well positioned for future earnings growth.”
Rice continued, “The company’s initial revenue projections for fiscal year 2003 remain consistent with prior guidance. We expect to grow total revenues to the range of $180-$190 million. Software license revenues are forecasted to grow faster than total revenues and are expected to be in the range of $55-$65 million. Pro-forma earnings per share are expected to be in the range of $0.30-$0.40.”
Additional information on MRO Software can be found at http://www.mro.com.