CIMdata PLM Industry Summary Online Archive
12 May 2005
Financial News
UGS Reports First Quarter 2005 Revenue of US$252.6 Million-UGS Expands Market Share in High-Growth cPDM Segment with 38.4 Percent Revenue Increase; cPDM Growth Fueled by Nearly Doubling Enterprise Contracts Over the Same Period a Year Earlier
UGS Corp . announced financial results for the first quarter ended March 31, 2005. The company signed 22 enterprise contracts, which we define as contracts with total contract value of more than US$1 million each-nearly doubling the number of enterprise contracts signed during the same period a year earlier-driving 38.4 percent total revenue growth in cPDM and enabling UGS to expand its market share lead in this high-growth segment of the PLM industry.
First quarter financial highlights include:
• Total revenue increased to US$252.6 million, or 8 percent growth over the same period a year earlier. The company saw an increase in total revenue in each geographic segment compared to the same period in 2004.
• Adjusted operating income, excluding amortization related to purchase accounting, was US$46.6 million. Reported operating income was US$13.8 million and includes the impact of amortization related to purchase accounting of US$32.8 million. In the same period a year prior, adjusted operating income was US$44.5 million excluding amortization related to purchase accounting of US$7.6 million, which when included resulted in reported operating income of US$36.9 million.
• Adjusted EBITDA (defined below) was US$56.9 million, which includes US$3.4 million of expense over the same period a year earlier for staffing infrastructure and marketing initiatives necessary for operation as an independent company.
UGS' first quarter results do not include Tecnomatix Technologies Ltd., as the transaction closed on April 1, 2005.
"We continue to see growth in the number of enterprise contracts as well as the number of non-traditional market contracts, which we believe reflects the growing visibility of PLM as a mission-critical enterprise strategy as well as the business value, open technology solutions and global scalability that only UGS can provide," said Tony Affuso, chairman, CEO and president of UGS. "UGS continues to gain steam as an independent company particularly in the cPDm space, where both we and a growing chorus of analysts believe the battle for PLM leadership will be won."
Business Highlights
• The signing of 22 enterprise contracts with a total contract value of more than US$1 million each. The large majority of these enterprise contracts included cPDM, with many -including two of the company's three contracts in the quarter with total contract value exceeding US$5 million-combining cPDM and CAx solutions. The company expects the revenue generated from the 22 enterprise contracts signed in the quarter to be spread over several quarters going forward based on the services components of the underlying contracts.
• The signing of multiple non-traditional contracts in industries such as consumer packaged goods, government, shipbuilding, media and retail and apparel.
• The acquisition of Tecnomatix Technologies Ltd., the leader in Manufacturing Process Management (MPM) software solutions for the automotive, electronics, aerospace and other manufacturing and processing industries, which closed on April 1, 2005. (UGS today separately announced a US$9.7 million, enterprise digital manufacturing contract with Comau, a world leading manufacturer of automotive production systems.
• The signing of the company's first two major systems integrators agreements with HP and Capgemini.
• The signing of a strategic alliance with Autodesk to extend collaboration across the supply chain for nearly 10 million users.
• The announcement of the immediate availability of UGS' JT2GoT solution, a set of no-cost 3D viewing products enabling companies to globally share detailed 3D product and manufacturing data using the lightweight JT format-the world's most widely-used 3D format. The value and functionality of this capability for enterprise and supply chain collaboration have prompted more than 100 companies across the world-a 100 percent increase over the same time a year ago-to adopt the JT Open initiative.
For more details including financial statements, visit the http://www.ugs.com .
UGS will replay a conference call on its first quarter 2005 earnings
with securities analysts until June 11, 2005 at:
https://e-meetings.mci.com/nc/join.php?i=PA7005235&p=UGS&t=r.
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