CIMdata PLM Industry Summary Online Archive
27 October 2004
Financial News
MatrixOne, Inc. Reports Year-Over-Year First Quarter Revenue Growth of 27%
MatrixOne , announced results for its first quarter ended October 2, 2004. For the first quarter ended October 2, 2004, total revenues were $29.6 million, compared to $23.2 million in the same period last year. For the first quarter, net loss was $1.9 million, or $0.04 per share, compared to a net loss of $6.7 million, or $0.14 per share, in the same period last year. For the first quarter ended October 2, 2004, pro forma net loss (1), which excludes amortization of purchased technology and intangible assets, was $1.7 million, or $0.03 per share, compared to a pro forma net loss (1), which excludes stock-based compensation, of $6.3 million, or $0.13 per share, in the same period last year.
"I am pleased with our overall performance during the first quarter with on-target bottom line results, strong year-over-year revenue growth and sound execution of our acquisition integration plan. The compelling business value of MatrixOne PLM solutions was reflected again this quarter by the strong revenue contribution from strategic new customers in key industrial markets including retail, automotive and electronics," said Mark F. O'Connell, President and Chief Executive Officer of MatrixOne. "We look forward to building on this success during the second quarter as we focus on extending our leadership position in the PLM market and driving continued improvements in our financial performance."
The following milestones were completed or announced since MatrixOne's fourth quarter earnings release on July 29, 2004:
• The Company recognized revenue from a number of the world's most innovative companies, including The Babcock & Wilcox Company, a worldwide energy services company; Comau Pico, a global supplier of industrial automation systems for the automotive manufacturing sector; Faurecia, a European automotive supplier; ITT Industries-Avionics Division, a supplier of information and electronic warfare technologies, systems and services; QUALCOMM Incorporated, a developer of innovative digital wireless communications products and services; Rockwell Collins, a provider of design, production and support of communications and aviation electronics solutions; Staples, Inc., the world's largest office products retailer; and Texas Instruments, a global semiconductor company and a designer and supplier of real-time signal processing solutions.
• The Company completed its previously announced acquisition of Synchronicity Software, Inc., a leading provider of electronic design management, team collaboration and intellectual property reuse solutions for the global electronics industry. With the acquisition, the Company added compelling new solutions for semiconductor and electronics design management as well as approximately 120 electronics industry customers including Cypress Semiconductor, Infineon Technologies, Intel, LSI Logic, Motorola, Nortel Networks, ON Semiconductor, Philips Semiconductor, STMicroelectronics, QUALCOMM and Toshiba Corporation.
• The Company hosted the MatrixOne Innovation Summit 2004 in Singapore, which brought together over 200 senior executives from 70 leading Asia/Pacific companies across a variety of industrial markets including aerospace and defense, automotive and high-tech. Visionaries from leading innovators such as Alcatel Shanghai Bell, BEA, Boeing, Toshiba and Venture collaborated during this two-day management forum on ways to drive top line revenue growth and bottom line profitability by embracing proven PLM strategies.
• The Company announced an integration with Microsoft® OfficeT to enable a more rapid adoption and intuitive use of MatrixOne PLM solutions in Microsoft-centric organizations by allowing product development teams to create, retrieve, edit and share MatrixOne-based product content while engaged in familiar Microsoft programs including Microsoft Word, Excel, PowerPoint and Outlook.
• The Company announced the expansion of its Board of Directors with the addition of David G. DeWalt, Executive Vice President of EMC Corporation. Prior to its acquisition by EMC in 2003, Mr. DeWalt served for more than two years as President and Chief Executive Officer of Documentum, the global leader in enterprise content management. Mr. DeWalt has also held various senior level positions at Eventus Software, Quest Software and Oracle Corporation.
The Company's management team will host a live conference call and webcast at 5:00 p.m. eastern time today to discuss the financial results as well as management's forward-looking guidance for the second quarter of fiscal year 2005. The conference call may be accessed in the United States by dialing (800) 762-4717 and using passcode "MONE". The conference call may be accessed outside of the United States by dialing (480) 629-9026 and using passcode "MONE". The conference call will be simultaneously webcast on the Company's Investor Relations website, which can be accessed at www.matrixone.com/investor . A replay of the webcast will be available two hours after the call.
(1)The Company uses the financial measure "pro forma net 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 loss is not meant to be a substitute for "net loss" presented in accordance with GAAP but rather should be evaluated in conjunction with net loss. The Company's management believes that the presentation of pro forma net loss provides useful information to investors because this financial measure excludes stock-based compensation, which is a non-cash charge that ended during the three month period ended January 3, 2004, and amortization of purchased technology and intangible assets, which are fixed acquisition-related charges. For the three-month period ended October 2, 2004, pro forma net loss excludes amortization of purchased technology and intangible assets. For the three-month period ended September 27, 2003, pro forma net loss excludes stock-based compensation. Management does not consider stock-based compensation and amortization of purchased technology and intangible assets to be part of the Company's on-going operating activities or meaningful in evaluating the Company's past financial performance or future prospects. In addition, pro forma net 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. Amortization of purchased technology and intangible assets relates to the amortization of identified intangible assets, such as purchased technology, customer relationships and trademarks and trade names, purchased through an acquisition. The Company's definition of pro forma net loss may differ from similar measures used by other companies and may differ from period to period.
For complete text and financial tables got to MatrixOne Press Release .
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