Exhibit 1
Company Contact: Investor Contact:
Tecnomatix Technologies Ltd. The Ruth Group
Oren Steinberg David Pasquale
+972-9-959-4891 +1-646-536-7006
osteinberg@tecnomatix.com dpasquale@theruthgroup.com
TECNOMATIX ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2004 RESULTS
Herzlia, Israel, February 15, 2005 - Tecnomatix Technologies Ltd.
(NASDAQ: TCNO), a leader in Manufacturing Process Management (MPM) solutions,
announced today its financial results for the fourth quarter and full year
ended December 31, 2004.
Revenues for the fourth quarter of 2004 were $27.1 million, compared to
$25.2 million for the fourth quarter of 2003. Operating income for the fourth
quarter of 2004 was $1.5 million, compared to an operating loss of $4.4
million for the fourth quarter of 2003, which included special charges of $3.4
million associated with impairment of capitalized software development costs,
impairment of software asset acquired from third party, restructuring costs
and asset impairment, in-process research and development and
acquisition-related costs. Net income for the fourth quarter of 2004 was $1.2
million or $0.10 per diluted share, compared to a net loss of $4.4 million or
$0.37 per diluted share for the fourth quarter of 2003.
For the full year 2004, revenues were $100.6 million, compared to
revenues of $86.3 million for the full year 2003. Operating income for the
full year 2004 was $3.1 million, compared to an operating loss of $10.7
million for the full year 2003, which included special charges of $9.3 million
associated with impairment of capitalized software development costs,
impairment of software asset acquired from third party, restructuring costs
and asset impairment, in-process research and development and
acquisition-related costs. Net income for the full year 2004 was $2.5 million
or $0.20 per diluted share, compared to a net loss of $10.3 million or $0.94
per diluted share for the full year 2003.
As of December 31, 2004, the Company had $39.2 million of cash and cash
equivalents, short-term investments and long-term investments, compared to
$38.7 million as of September 30, 2004.
About Tecnomatix Technologies
Tecnomatix Technologies Ltd. is a leader in Manufacturing Process
Management (MPM). Today's leading global manufacturers are adopting MPM
solutions to expand revenue potential and reduce costs by accelerating product
introductions, shortening time to volume, and optimizing production execution.
eMPower enables our customers to succeed with its collaborative, open platform
and applications for defining, simulating, managing, and executing
manufacturing processes across the extended enterprise. For more information
on eMPower products and solutions for MPM, please visit www.tecnomatix.com.
This press release includes forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, which are subject to
risks and uncertainties that could cause actual results to differ materially
from those anticipated. Such statements may relate to the Company's plans,
objectives and expected financial and operating results. The risks and
uncertainties that may affect forward-looking statements include, but are not
limited to: currency fluctuations, global economic and political conditions,
market demand for Tecnomatix products and services, long sales cycles, new
product developments, assimilating future acquisitions, maintaining
relationships with customers and partners, and increased competition. For more
details about the risks and uncertainties of the business, refer to the
Company's filings with the Securities and Exchange Commission. Tecnomatix
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
- Tables Follow -
TECNOMATIX TECHNOLOGIES LTD.
- ----------------------------
Condensed Consolidated Balance Sheets
U.S. $ in thousands
12/31/2004 12/31/2003
------------- -------------
Current Assets:
Cash and cash equivalents 15,505 9,232
Short-term investments 11,911 70
Receivables:
Trade 25,653 29,190
Related parties 405 -
Other and prepaid expenses 5,430 5,747
------------- ------------
Total current assets 58,904 44,239
------------- ------------
Non-current receivables 1,656 1,108
------------- ------------
Long-term investments:
Bonds 11,659 24,267
Zuken Tecnomatix 260 289
------------- ------------
Total long-term investments 11,919 24,556
------------- ------------
Property and equipment, net 4,490 5,628
------------- ------------
Goodwill, net 25,654 25,829
------------- ------------
Acquired intangibles, net 1,862 2,444
------------- ------------
Other assets, net 13,784 13,296
------------- ------------
Total assets 118,269 117,100
============= ============
Current Liabilities:
Current maturities of long-term loans 7,833 833
Payables:
Trade 3,241 4,644
Deferred Revenues 5,865 7,130
Other and accrued expenses 18,123 19,163
------------- ------------
Total current liabilities 35,062 31,770
------------- ------------
Accrued severance pay, net 1,089 1,095
------------- ------------
Long-term liabilities:
Accrued restructuring expenses 1,690 1,716
Loan from a Bank 16,333 24,167
------------- ------------
Total long-term liabilities 18,023 25,883
------------- ------------
Shareholders' equity 64,095 58,352
------------- ------------
Total liabilities and shareholders' equity 118,269 117,100
============= ============
TECNOMATIX TECHNOLOGIES LTD.
- -----------------------------
Consolidated Statements of Operations
U.S. $ in thousands, except per share data
Twelve months ended Three months ended
12/31/2004 12/31/2003 12/31/2004 12/31/2003
---------- ---------- ---------- ----------
Revenues
Software license fees 40,503 36,033 10,809 11,894
Services 60,112 50,224 16,279 13,306
---------- ---------- ----------- ----------
Total revenues 100,615 86,257 27,088 25,200
---------- ---------- ----------- ----------
Costs and expenses
Software license fees 8,111 10,114 2,213 3,860
Services 20,212 15,281 5,333 4,371
Amortization of acquired intangibles 582 136 144 113
Impairment of capitalized software development costs - 2,180 - 1,292
Research and development, net 16,005 14,960 3,980 4,289
Selling and marketing 47,611 42,491 12,519 12,514
General and administrative 4,945 4,673 1,406 1,050
Impairment of software asset acquired from third-party - 937 - 937
In-process R&D and acquisition related costs - 3,530 - 8
Restructuring costs and assets impairment - 2,659 - 1,172
---------- ---------- ----------- ----------
Total costs and expenses 97,466 96,961 25,595 29,606
---------- ---------- ----------- ----------
Operating income (loss) 3,149 (10,704) 1,493 (4,406)
Financial income (expense), net (150) 679 (59) 203
---------- ---------- ----------- ----------
Income (loss) before taxes on income 2,999 (10,025) 1,434 (4,203)
Taxes on income (409) (212) (163) (171)
---------- ---------- ----------- ----------
Income (loss) after taxes on income 2,590 (10,237) 1,271 (4,374)
Equity share in net loss of an affiliate company (76) (103) (23) (29)
----------- ---------- ----------- ----------
Net income (loss) 2,514 (10,340) 1,248 (4,403)
=========== ========== =========== ===========
Basic earnings (loss) per share:
Net Income (loss) 0.21 (0.94) 0.10 (0.37)
=========== ========== =========== ===========
Diluted earnings (loss) per share:
Net Income (loss) 0.20 (0.94) 0.10 (0.37)
=========== ========== =========== ===========
Weighted average number of shares outstanding:
Basic 12,095,908 11,054,556 12,195,319 11,914,113
=========== ============ ============ ============
Diluted 12,888,014 11,054,556 12,812,669 11,914,113
=========== ============ ============ ============