EXHIBIT 99
FOR IMMEDIATE RELEASE
Investor Contact: | Media Contact: |
Peter Rice | Vaughn Harring |
(781) 280-6550 | (781) 280-6855 |
peter.rice@mro.com | vaughn.harring@mro.com |
MRO SOFTWARE REPORTS SECOND QUARTER RESULTS
Fiscal Year Guidance Confirmed
BEDFORD, Mass., April 14, 2005– MRO Software, Inc. (Nasdaq: MROI), the leading provider of strategic asset management solutions, today 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 (see Schedule A) 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. The call will begin at 4:30 p.m. EDT. To participate in this call within the U.S. and Canada, dial (800) 932-9896, international callers should dial (706) 634-5804. A digital recording of the call will be available beginning two hours after the call and will be available through April 21, 2005. To access the replay within the U.S.
and Canada, dial (800) 642-1687, international callers should dial (706) 645-9291, all participants should use conference ID: 5049221.
A webcast of this call will be available at: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:www.mro.com/investor
About MRO Software, Inc.
MRO Software is the leading provider of strategic asset and service management solutions. Maximo Enterprise Suite, the Company’s flagship solution, is delivered on a web-architected platform and increases productivity, optimizes asset performance, and service levels, reduces costs and enables asset-related sourcing and procurement across the entire spectrum of strategic assets.
The Company’s asset management solutions allow customers to manage the complete lifecycle of strategic assets including: planning, procurement, deployment, tracking, maintenance and retirement. Using MRO Software’s solutions customers improve production reliability, labor efficiency, material optimization, software license compliance, lease management, warranty and service management across the asset base.
MRO Software (Nasdaq: MROI) 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 can be found athttp://www.mro.com.
Forward-Looking Statements.This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company’s actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include, among other things, slower than anticipated customer acceptance of our new products, and those factors discussed in the Section entitled “Factors Affecting Future Performance” in our quarterly report on Form 10-Q for the quarter ended December 31, 2004.
MAXIMO® is a registered trademark, and MRO SoftwareTM is a trademark, of MRO Software, Inc.
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MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Software | $ | 10,174 | $ | 11,452 | $ | 24,998 | $ | 23,662 | |||||||||||
Support and services | 33,005 | 33,170 | 65,537 | 65,862 | |||||||||||||||
Total revenues | 43,179 | 44,622 | 90,535 | 89,524 | |||||||||||||||
Cost of revenues: | |||||||||||||||||||
Software | 680 | 1,236 | 1,441 | 2,296 | |||||||||||||||
Support and services | 16,320 | 15,407 | 31,935 | 30,180 | |||||||||||||||
Amortization of acquired technology | 519 | 659 | 1,038 | 1,411 | |||||||||||||||
Total cost of revenues | 17,519 | 17,302 | 34,414 | 33,887 | |||||||||||||||
Gross profit | 25,660 | 27,320 | 56,121 | 55,637 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Sales and marketing | 13,351 | 13,835 | 28,582 | 27,545 | |||||||||||||||
Product development | 6,958 | 7,097 | 13,738 | 14,103 | |||||||||||||||
General and administrative | 4,459 | 4,389 | 8,937 | 8,854 | |||||||||||||||
Amortization of other intangibles | 91 | 204 | 183 | 409 | |||||||||||||||
Total operating expenses | 24,859 | 25,525 | 51,440 | 50,911 | |||||||||||||||
Income from operations | 801 | 1,795 | 4,681 | 4,726 | |||||||||||||||
Interest income, net | 647 | 244 | 1,118 | 448 | |||||||||||||||
Other income/(expense), net | (499 | ) | 113 | 71 | (327 | ) | |||||||||||||
Income before income taxes | 949 | 2,152 | 5,870 | 4,847 | |||||||||||||||
Provision for income taxes | 330 | 753 | 2,088 | 1,696 | |||||||||||||||
Net income | $ | 619 | $ | 1,399 | $ | 3,782 | $ | 3,151 | |||||||||||
Net income per share, basic | $ | 0.02 | $ | 0.06 | $ | 0.15 | $ | 0.13 | |||||||||||
Net income per share, diluted | $ | 0.02 | $ | 0.05 | $ | 0.15 | $ | 0.12 | |||||||||||
Shares used to calculate net income per share | |||||||||||||||||||
Basic | 25,238 | 24,796 | 25,141 | 24,712 | |||||||||||||||
Diluted | 25,727 | 25,460 | 25,559 | 25,326 |
MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA, AS ADJUSTED
Schedule A
(unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
GAAP net income | $ | 619 | $ | 1,399 | $ | 3,782 | $ | 3,151 | |||||||||||
Pro forma adjustments | |||||||||||||||||||
Amortization of other intangibles | 91 | 204 | 183 | 409 | |||||||||||||||
Amortization of acquired technology | 519 | 659 | 1,038 | 1,411 | |||||||||||||||
Related tax effects | (213 | ) | (243 | ) | (427 | ) | (521 | ) | |||||||||||
Total pro forma adjustments | 397 | 620 | 794 | 1,299 | |||||||||||||||
Pro forma net income, as adjusted | $ | 1,016 | $ | 2,019 | $ | 4,576 | $ | 4,450 | |||||||||||
Pro forma diluted net income per share, | |||||||||||||||||||
as adjusted | $ | 0.04 | $ | 0.08 | $ | 0.18 | $ | 0.18 | |||||||||||
Shares used to calculate pro forma net income | |||||||||||||||||||
per share, as adjusted | 25,727 | 25,460 | 25,559 | 25,326 | |||||||||||||||
MRO SOFTWARE, INC. | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(unaudited) | ||||||||||
March 31, 2005 | September 30, 2004 | |||||||||
ASSETS | ||||||||||
(in thousands) | ||||||||||
Cash and cash equivalents | $ | 73,072 | $ | 56,982 | ||||||
Marketable securities | 33,191 | 36,152 | ||||||||
Accounts receivable, net | 33,326 | 36,636 | ||||||||
Other current assets | 7,563 | 6,542 | ||||||||
TOTAL CURRENT ASSETS | 147,152 | 136,312 | ||||||||
Marketable securities | 11,821 | 15,273 | ||||||||
Property and equipment, net | 7,815 | 7,227 | ||||||||
Intangible assets, net | 50,657 | 52,309 | ||||||||
Other assets | 11,007 | 11,600 | ||||||||
TOTAL ASSETS | $ | 228,452 | $ | 222,721 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities | $ | 23,695 | $ | 28,778 | ||||||
Deferred revenue | 32,929 | 29,373 | ||||||||
TOTAL CURRENT LIABILITIES | 56,624 | 58,151 | ||||||||
Other long term liabilities | 3,303 | 3,435 | ||||||||
TOTAL LIABILITIES | 59,927 | 61,586 | ||||||||
STOCKHOLDERS’ EQUITY | 168,525 | 161,135 | ||||||||
TOTAL LIABILITIES & | ||||||||||
STOCKHOLDERS’ EQUITY | $ | 228,452 | $ | 222,721 | ||||||
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