CIMdata PLM Industry Summary Online Archive
14 April 2005
Financial News
MRO Software Reports Second Quarter Results; Fiscal Year Guidance Confirmed
MRO Software, Inc. announced its final results for the Company's second quarter ended March 31, 2005.
Total revenues for the second quarter were $43.2 million compared with $44.6 million for the second quarter last year, a decrease of 3 percent. On a GAAP basis, the Company reported net income for the second quarter of $0.6 million or $0.02 per diluted share, compared with a net income of $1.4 million or $0.05 per diluted share for the second quarter of fiscal 2004.
Pro forma net income for the second quarter was $1.0 million, or $0.04 per diluted share compared with pro forma net income of $2.0 million, or $0.08 per diluted share for same quarter last year. Pro forma results are adjusted for the amortization of acquired technology and other intangibles and the related tax effects.
For the second quarter, revenues from software license sales were $10.2 million, compared with $11.5 million for the same quarter last year, a decrease of 11 percent. During the second quarter, the Company sold 213 new software licenses. Support and services revenues were $33.0 million for the second quarter, compared with $33.2 million for the same quarter last year, a decrease of 1 percent.
The balance sheet as of March 31, 2005 contained $118.1 million in cash and marketable securities and no long-term debt. For the second quarter, deferred revenue was $33.7 million, and days sales outstanding (DSO) was 69 days.
"Maximo Enterprise Suite, the largest product development project we've ever undertaken, has been delivered on time and we expect it to contribute to our results in the second half of this year," said Chip Drapeau, president and CEO, MRO Software. "Our industry-specific solutions continue to drive revenue and have proven to be competitive differentiators against both large ERP vendors and smaller niche providers. With a strong pipeline and new leadership in the sales organization, our outlook for the second half of the year remains solid."
The Company reaffirmed its existing guidance for fiscal 2005, and expects software revenues to grow within the previously published range of 10 to 20 percent above fiscal 2004 results. As a result, the Company expects earnings to increase in the range of 15 to 25 percent over fiscal 2004 results on both a GAAP and pro forma basis. The Company expects revenues for the third quarter of fiscal 2005 to be in the range of $49 to $51 million, GAAP earnings to be in the range of $0.12 to $0.14 per share, and pro forma earnings to be in the range of $0.14 to $0.16 per share.
Expected results on a pro forma basis are adjusted for the amortization of acquired technology and other intangibles and the related tax effects.
MRO Software will hold its conference call to discuss the second fiscal second quarter earnings on Thursday, April 14, 2005. A webcast of this call will be available at: http://www.mro.com/investor . A transcript of the call will be promptly archived on the Investor Relations portion of the Company's website, and may be found at: http://www.mro.com/investor .
MRO Software is a global company based in Bedford, Mass., with approximately 900 employees, 10,000 customers and more than 260,000 end-users. The Company markets its products through a direct sales organization in combination with a network of international distributors. MRO Software has sales offices throughout North America, Europe, Asia/Pacific and Latin America. Additional information on MRO Software including full financials can be found at http://www.mro.com .
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