CIMdata PLM Industry Summary Online Archive

4 April 2005

Financial News

MatrixOne Provides Financial Update For Third Quarter Of Fiscal Year 2005; Company to Host Conference Call at 8:30 A.M. Eastern Time April 5

MatrixOne, Inc. announced preliminary financial results for its third quarter ended April 2, 2005. Based on preliminary estimates, the Company currently expects total revenues for the third quarter to be between $29.0 million and $30.0 million. The Company expects total software license revenues for the third quarter to be between $8.5 million and $9.5 million, reflecting weaker-than-expected sales force execution and unexpected delays during the final phase of the quarter in customer purchasing decisions, including customers negotiating multi-million dollar software license purchases. The Company expects to report a net loss for the third quarter of between $0.11 per share and $0.13 per share and adjusted net loss of between $0.10 per share and $0.12 per share.(1) Adjusted net loss per share excludes amortization of purchased technology and intangible assets of $0.01 per share.(1)

The Company's management team will host a live conference call at 8:30 a.m. eastern time on Tuesday, April 5, 2005 to review the preliminary results for the third quarter of fiscal year 2005. A replay of the call will be available for two weeks at (800) 475-6701, pass code 777814.

(1)The Company uses the non-GAAP financial measure "adjusted 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 adjusted 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 adjusted net loss provides useful information to investors because this financial measure excludes amortization of purchased technology and intangible assets, which are fixed acquisition-related charges. Management does not consider 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, adjusted 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. 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 adjusted net loss may differ from similar measures used by other companies and may differ from period to period.

 

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