CIMdata PLM Industry Summary Online Archive
29 July 2004
Financial News
MatrixOne, Inc. Reports Fourth Quarter Profit
MatrixOne, Inc. announced results for its fourth quarter and fiscal year ended July 3, 2004.
For the fourth quarter ended July 3, 2004, total revenues were $30.0 million, compared to $26.3 million in the same period last year. For the fourth quarter, net income was $0.4 million, or $0.01 per share, compared to a net loss of $3.7 million, or $0.08 per share, in the same period last year. For the fourth quarter ended July 3, 2004, pro forma net income (1), which excludes restructuring charges, was $0.3 million, or $0.01 per share, compared to a pro forma net loss (1), which excludes stock-based compensation and restructuring charges, of $3.3 million, or $0.07 per share, in the same period last year.
For the fiscal year ended July 3, 2004, total revenues were $109.1 million, compared to $109.4 million in the prior fiscal year. For the fiscal year ended July 3, 2004, net loss was $16.2 million, or $0.33 per share, compared to a net loss of $24.5 million, or $0.52 per share, in the prior fiscal year. For the fiscal year ended July 3, 2004, pro forma net loss (1), which excludes stock-based compensation, restructuring charges and asset impairment and disposal charges, was $12.2 million, or $0.25 per share, compared to a pro forma net loss (1), which excludes stock-based compensation and restructuring charges, of $17.9 million, or $0.38 per share, in the prior fiscal year.
"We are very pleased to report that as a result of solid revenue growth and continued cost controls, we were able to achieve profitability and return the Company to positive cash flow in the fourth quarter. We are equally excited by the growing strength and adoption of our solutions as reflected in the fourth quarter with key strategic customer wins at leading global innovators such as NCR, Nortel Networks and Texas Instruments," said Mark F. O'Connell, President and Chief Executive Officer of MatrixOne. "We look forward to building on this progress in our new fiscal year, as we focus on extending our leadership position in the PLM market and continuing our commitment to profitable growth."
The following milestones were completed or announced since MatrixOne's third quarter earnings release on April 28, 2004:
• During the fourth quarter, MatrixOne recognized revenue from a number of global innovative companies, including Alcatel Shanghai Bell, a global communications solutions provider; American Standard Companies Inc., a global manufacturer of air conditioning systems and services, bath and kitchen products, and vehicle control systems; Boeing Australia, Ltd., a wholly-owned subsidiary of The Boeing Company and a high technology aerospace enterprise specializing in design, installation and support of key defense and commercial systems and the development and application of complex systems support and defense communications solutions; Grupo Bocar, a Mexico-based tier one supplier of aluminum die casting and plastic injection molding components to the global automotive industry; NCR Corporation, a global technology company helping businesses build stronger relationships with their customers; Nortel Networks, an industry leader and innovator focused on transforming how the world communicates and exchanges information; Raytheon Australia Pty Ltd, a mission systems integrator in sea, land, air and office environments; and Texas Instruments, the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age.
• MatrixOne entered into a definitive agreement to acquire privately held Synchronicity Software, Inc., in a transaction expected to close on August 4, 2004. Synchronicity, a Massachusetts-based company, is a provider of electronic design management, team collaboration and intellectual property reuse solutions for the global electronics industry. With the acquisition, MatrixOne is expected to add approximately 120 electronics industry customers, new solutions for semiconductor and electronics design management, and significant domain expertise in the electronics industry. Synchronicity customers include Cypress Semiconductor, Fujitsu, Hitachi, Infineon Technologies, Intel, LSI Logic, Micron, Motorola, NEC Corporation, Nortel Networks, ON Semiconductor, Philips Semiconductor, STMicroelectronics, PMC-Sierra, Qualcomm and Toshiba Corporation.
• MatrixOne demonstrated the strength of its leadership position in the global electronics market at the 41st Annual Design Automation Conference (DAC) that was held June 6-9 in San Diego, California. Members of the MatrixOne management team presented at the Synchronicity Customer Advisory Board and trade booth to highlight the acquisition of Synchronicity by MatrixOne and the power of their combined solutions for electronics designers across a variety of industrial markets. In addition, MatrixOne solutions were showcased in the Intel booth as part of the recently introduced Mobile Engineering Platform that leverages key technologies from MatrixOne, Intel, IBM and Cadence Design Systems. Finally, members of the management teams of MatrixOne and Cadence hosted customer meetings and demonstrations to preview the Cadence Allegro Design Workbench, a new family of products based on advanced MatrixOne technology.
Company to Host Live Conference Call and Webcast
The Company's management team will host a live conference call and webcast at 5:30 p.m. eastern time today to discuss the Company's financial results for the fourth quarter and fiscal year ended July 3, 2004 and management's forward-looking guidance. The webcast, along with the earnings press release and accompanying financial and operating statistics, will be accessible from the Company's website at http://www.matrixone.com/investor
(1) The Company uses the financial measure "pro forma net income (loss)" to supplement its consolidated financial statements, which are presented in accordance with accounting principles generally accepted in the United States ("GAAP"). The presentation of pro forma net income (loss) is not meant to be a substitute for "net income (loss)" presented in accordance with GAAP but rather should be evaluated in conjunction with net income (loss). The Company's management believes that the presentation of pro forma net income (loss) provides useful information to investors because this financial measure excludes stock-based compensation, which is a non-cash charge, restructuring charges and asset impairment and disposal charges, which are charges relating to an unusual event. For the fiscal year ended July 3, 2004, pro forma net loss excludes stock-based compensation, restructuring charges and asset impairment and disposal charges, and for the three months ended July 3, 2004, pro forma net income excludes restructuring charges. For the three month period and fiscal year ended June 28, 2003, pro forma net loss excludes stock-based compensation and restructuring charges. Management does not consider stock-based compensation, restructuring charges and asset impairment and disposal charges to be part of the Company's on-going operations or meaningful in evaluating the Company's past financial performance or future prospects. In addition, pro forma net income (loss) is a primary financial indicator that the Company's management uses to evaluate the Company's financial results and forecast anticipated financial results for future periods. Stock-based compensation represents the difference between the stock option exercise price and the deemed fair value of the Company's common stock on the date of grant and relates only to the grant of certain stock options to employees during fiscal 2000 and 1999, which do not require cash settlement. Restructuring charges and asset impairment and disposal charges are material costs that were incurred relating to an unusual event to align the Company's operations and cost structure with market conditions. The Company's definition of pro forma net income (loss) may differ from similar measures used by other companies.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995-Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated.. For a more detailed discussion of the risks and uncertainties of our business, please refer to our periodic reports and registration statements filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended June 28, 2003 and our Quarterly Report on Form 10-Q for the three and nine month periods ended April 3, 2004.
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