CIMdata PLM Industry Summary Online Archive

28 July 2004

Financial News

Tecnomatix Announces Second Quarter 2004 Results

Tecnomatix Technologies Ltd. announced its financial results for the second quarter ended June 30, 2004.

Revenues for the second quarter of 2004 were $24.2 million, compared to $20.2 million for the second quarter of 2003. Operating income for the second quarter of 2004 was $0.5 million, compared to an operating loss of $(0.2) million for the second quarter of 2003. Net income for the second quarter of 2004 was $0.4 million or $0.03 per diluted share, compared to $0.2 million or $0.02 per diluted share for the second quarter of 2003.

Revenues for the first six months of 2004 were $48.0 million, compared to $40.8 million for the first six months of 2003. Operating income for the first six months of 2004 was $1.0 million, compared to an operating loss of $(1.8) million for the first six months of 2003. Net income for the first six months of 2004 was $0.7 million or $0.05 per diluted share, compared to a net loss of $(1.3) million or $(0.12) per diluted share for the first six months of 2003.

At June 30, 2004, the Company had a $38.0 million balance of cash and cash equivalents, short-term investments and long-term investments.

"The second quarter was a period of very solid performance for Tecnomatix, where we accomplished our strategic and financial goals," said Jaron Lotan, president and chief executive officer of Tecnomatix Technologies Ltd. "This is the third sequential quarter that we are reporting year-over-year growth in revenues, and another quarter that we are reporting year-over-year growth in operating and net profits. In addition, we continue to report a positive cash flow from operating activities. These results are mainly attributable to continued strength in the Automotive sector, continued improvement in the Electronics sector, and growing sales momentum in the Automotive Tier-1 Supplier sector.

"Automotive manufacturers continue to expand their deployment of our MPM solutions with more OEMs joining the Tecnomatix customer base and others adopting our solutions for additional domains and facilities," continued Lotan. "During the second quarter, companies like Opel, Skoda and Isuzu started initial enterprise implementations, and BMW decided to extend its use of eMPower to its powertrain division. In addition, Tecnomatix carried out several projects for global accounts, including Audi, Ford, GM and Volkswagen, as part of their strategies to deploy MPM throughout their facilities worldwide.

"Particularly noteworthy, was PSA Peugeot Citroën's choice of Tecnomatix as its standard solution for all its carbody assembly operations worldwide. This decision resulted in the latest multi-million dollar agreement for Tecnomatix's eMPower CarBody solution. PSA Peugeot Citroën is presently using Tecnomatix solutions for its powertrain operations and this win, which came after a very competitive evaluation process, underscores our growing market share in Europe.

"We also received initial and follow-on orders from the automotive supplier community, including Tier-1 suppliers Draexelmaier, ebm-papst, Getrag-Ford, Hella, Robert Bosch, Webasto, and ZF, and from EX-CELL-O, a world-leading supplier of machining lines and systems.

"In the Electronics sector, we are particularly pleased with the market acceptance of our new eM-Execution solution, which we announced last quarter. Several of our electronics customers are already expanding implementations, among them Siemens, which is extending its deployment across three of its plants in Germany.

"Overall, we enter the second half of 2004 in a strong leadership position," concluded Lotan. "Our expanding suite of MPM solutions, track record of delivering customer value, and strong management team continue to differentiate Tecnomatix from our competitors and to drive our growth."

Forward-Looking Guidance

Oren Steinberg, chief financial officer and executive vice president of Tecnomatix Technologies said, "We continue to make steady progress in improving our financial performance and creating value for our shareholders, as we gain sales momentum in our key markets and leverage our cost efficiencies. Based on our current plans and visibility, we expect to achieve revenue growth of approximately 15%-20% for the full year 2004 over 2003, with improved profitability on a quarterly basis."

Investor Conference Call / Webcast Details

Tecnomatix will review detailed second quarter 2004 results on July 28, 2004 at 8:30AM EDT. A replay will be available from 11:30AM EDT on July 28 through midnight EDT, August 4. The replay number is 973-341-3080. The confirmation identification is 4995912. The live call and replay will also be accessible over the web at http://investor.tecnomatix.com

For full financials details, see http://investor.tecnomatix.com/ireye/ir_site.zhtml?ticker=tcno&script=411&layout=-6&item_id=597333

 

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