CIMdata PLM Industry Summary Online Archive
MAY 11, 2009
Financial News
MSC.Software Reports Financial Results for the First Quarter Ended March 31, 2009
MSC.Software Corporation reported results for the first quarter ended March 31, 2009. Key financial results include the following:
First quarter:
• Total first quarter revenue of $53.6 million, with software revenue of $17.4 million, maintenance revenue of $31.0 million, and services revenue of $5.2 million;
• First quarter operating income of $1.5 million; and
• Deferred revenue of $75.5 million and cash of $149.1 million at March 31, 2009.
REVENUE
Total revenue for the first quarter ended March 31, 2009 was $53.6 million compared to $61.2 million for the first quarter in 2008. Software revenue for the first quarter totaled $17.4 million compared to $22.0 million for the first quarter in 2008. For the first quarter ended March 31, 2009, maintenance revenue totaled $31.0 million and services revenue totaled $5.2 million, compared to $33.0 million of maintenance revenue and $6.2 million of services revenue for the first quarter in 2008.
"In line with our guidance, total revenue decreased 12% in the first quarter versus last year. While software declined 21%, we achieved profitability and delivered $1.5 million of operating income," said Ashfaq Munshi, interim CEO and President of MSC Software. "As a consequence of cost containment measures, we continue to see favorable trends in our cost structure."
"A number of key customer wins in the quarter demonstrate that although global manufacturers are feeling the challenges of the macro-economic environment, they recognize that strategic simulation software deployments can positively impact their business and accelerate their return on technology investments. In the first quarter, we completed significant software transactions with Airbus in Europe, NASA and Bombardier in the Americas, and Mitsubishi Motors in Asia Pacific," continued Mr. Munshi.
"My focus as interim CEO is to evaluate and allocate resources consistent with a performance-driven approach to managing the business, while at the same time making sure that our products and the way we do business is aligned with our customers' requirements," concluded Mr. Munshi.
REVENUE BY GEOGRAPHY
Total revenue in the Americas for the first quarter ended March 31, 2009 was $16.9 million compared to $18.5 million for the first quarter last year. Total revenue in EMEA for the first quarter ended March 31, 2009 was $18.3 million compared to $23.6 million for the first quarter last year. Changes in the Euro decreased EMEA revenue by $2.7 million in the first quarter. In the Asia region, revenue for the first quarter ended March 31, 2009 totaled $18.4 million compared to $19.1 million for the first quarter last year. Changes in the Japanese Yen increased Asia revenue during the first quarter by $2.1 million.
RESULTS OF OPERATIONS AND EPS
Total operating expenses for the first quarter ended March 31, 2009 were $41.6 million compared to $53.7 million for the first quarter last year. Operating income for the first quarter was $1.5 million compared to an operating loss of $4.5 million for the first quarter last year. For the first quarter ended March 31, 2009, net income from continuing operations totaled $0.1 million or breakeven for EPS, compared to a net loss from continuing operations of ($2.2) million or ($0.05) per diluted share.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.