EXHIBIT 99
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MRO SOFTWARE
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 FIRST QUARTER RESULTS
SOLID PERFORMANCE; EARNINGS DOUBLE OVER PRIOR YEAR
BEDFORD, MASS., JANUARY 22, 2004 - MRO Software, Inc. (Nasdaq: MROI), the
leading provider of strategic asset management solutions, today announced
results for the Company's first quarter ended December 31, 2003.
Total revenues for the first quarter were $44.9 million compared with $43.9
million for the first quarter last year, an increase of 2 percent. On a GAAP
basis, the Company reported net income for the first quarter of $1.8 million or
$0.07 per diluted share, compared with net income of $0.4 million or $0.02 per
diluted share for the first quarter of fiscal 2003.
Pro forma net income (see Schedule A) for the first quarter was $2.4 million, or
$0.10 per diluted share compared with pro forma net income of $1.2 million, or
$0.05 per diluted share for same quarter last year. Pro forma results are
adjusted for the amortization of acquired technology and other intangibles and
their related tax effects.
For the first quarter, revenues from software license sales were $12.2 million,
compared with $12.7 million for the same quarter last year, a decrease of 4
percent. Support and services revenues were $32.7 million for the first quarter,
compared with $31.2 million for the same quarter last year, an increase of 5
percent.
During the first quarter, the Company sold 239 software licenses. Customers
across a range of industries and geographies purchased MRO Software products
during the quarter including: aerospace, automotive, facilities, financial
services, homeland security, oil & gas, professional services, public sector,
utilities and pharmaceuticals. Customers included: Arabian Construction Co, Bay
Area Rapid Transit Authority, BP Amoco, China National Offshore Oil Company,
Fluor International, General Services Administration (GSA), International Power
Australia, Kerr-McGee, Kuwait National Petroleum Co., Nippon Goshei, Smurfit,
Toshiba and the United States Coast Guard.
The balance sheet as of December 31, 2003 contained $90.3 million in cash and
marketable securities and no long-term debt. For the first quarter, deferred
revenue was $29.6 million, and days sales outstanding (DSO) was 63 days.
"The first quarter results provide us with a good start to fiscal 2004. We were
able to maintain our momentum in MAXIMO sales and win rates and deliver improved
profitability," said Chip Drapeau, president and CEO, MRO Software. "In addition
we continued to build the foundation for our future growth in IT Asset
Management and vertical markets with improved sales of MAXIMO MainControl, and a
new vertical offering for the Pharmaceuticals industry. These vertical products
leverage the MAXIMO Internet platform and increase our penetration in key
industries."
"I'm pleased with our financial performance this quarter," said Peter Rice,
executive vice president and CFO, MRO Software. "We're maintaining the strong
balance sheet and financial fundamentals that are critical to support our future
growth."
Rice continued, "For fiscal year 2004, the Company confirms its expectation for
earnings to grow into the range of $0.30-$0.40 per share on a GAAP basis or
$0.40-$0.50 per share on a pro forma basis. These expected earnings are based on
revenue growth of approximately 5 percent above fiscal 2003 results.
Specifically for the second quarter of fiscal 2004 we expect revenues to be in
the range of $41 to $43 million, and while sequentially down, we expect earnings
and revenue to grow over prior year results. Earnings for the second quarter
should fall in the range of $0.02 to $0.04 per share on a GAAP basis, and
between of $0.04 to $0.06 per share on a pro forma basis."
Expected results on a pro forma basis are adjusted for the amortization of
acquired technology and other intangibles and their related tax effects (see
Schedule A).
The Company will conduct a conference call to discuss the quarter's results on
Thursday, January 22, at 4:30 p.m. EST.
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
until January 29, 2004. 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: 4814679.
A webcast of the call is 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 management solutions.
The Company's integrated suite of applications optimizes performance, improves
productivity and service levels 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
and provisioning 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 at http://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, continued sluggishness in
IT spending and stagnation in the market for our products, difficulties or
delays in the development or deployment of our industry-specific offerings,
delayed sales of our MainControl products in anticipation of new releases, lower
than expected benefits from our alliance partner program, and those factors
discussed in the Section entitled "Factors Affecting Future Performance" in our
Annual Report on Form 10-K for the year ended September 30, 2003.
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MAXIMO(R) and MAXIMO MainControl(R) are registered trademarks, and MRO
SoftwareTM is a trademark, of MRO Software, Inc.
MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31,
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2003 2002
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(in thousands, except per share data)
Revenues:
Software $ 12,210 $ 12,685
Support and services 32,692 31,203
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Total revenues 44,902 43,888
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Cost of revenues:
Software 1,060 1,006
Support and services 14,773 14,928
Amortization of acquired technology 752 844
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Total cost of revenues 16,585 16,778
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Gross profit 28,317 27,110
Operating expenses:
Sales and marketing 13,710 15,399
Product development 7,006 6,756
General and administrative 4,465 4,646
Amortization of other intangibles 205 248
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Total operating expenses 25,386 27,049
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Income from operations 2,931 61
Interest income 204 210
Other (expense)/income, net (440) 338
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Income before income taxes 2,695 609
Provision for income taxes 943 214
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Net income $ 1,752 $ 395
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Net income per share, basic $ 0.07 $ 0.02
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Net income per share, diluted $ 0.07 $ 0.02
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Shares used to calculate net income per share
Basic 24,629 24,306
Diluted 25,200 24,478
MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA, AS ADJUSTED
SCHEDULE A
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31,
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2003 2002
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(IN THOUSANDS, EXCEPT PER SHARE DATA)
GAAP net income $ 1,752 $ 395
Pro forma adjustments
Amortization of other intangibles 205 248
Amortization of acquired technology 752 844
Related tax effects (278) (313)
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Total pro forma adjustments 679 779
Pro forma net income, as adjusted $ 2,431 $ 1,174
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Pro forma diluted net income per share,
as adjusted $ 0.10 $ 0.05
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Shares used to calculate pro forma net
income per share, as adjusted 25,200 24,478
NOTE:
In this press release, the Company announced its earnings per share (EPS) on a
GAAP and pro forma basis. Pro forma net income for fiscal year 2003 and 2002 is
adjusted to exclude the amortization of acquired technology and other
intangibles and their related tax effects.
Management believes that such pro forma EPS is useful to investors, first
because it is important for investors to receive information in a form that is
consistent with the Company's past practice, and second because the Company's
amortization of acquired technology and other intangibles is substantially
fixed, and is relatively large in comparision with the absolute value of the
Company's operating income. The Company believes that by focusing on the impact
of expenses that are to a greater extent subject to control by the Company's
management, pro forma EPS provides investors with a more direct perspective on
the performance of the Company and its management.
MRO SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
DECEMBER 31, SEPTEMBER 30,
2003 2003
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(in thousands) ASSETS
Cash and cash equivalents $ 49,495 $ 73,662
Marketable securities 1,102 1,102
Accounts receivable, net 31,524 28,833
Other current assets 8,228 6,419
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TOTAL CURRENT ASSETS 90,349 110,016
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Marketable securities 39,735 19,809
Property and equipment, net 7,670 8,239
Intangible assets, net 52,953 53,910
Other assets 13,817 13,287
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TOTAL ASSETS $ 204,524 $ 205,261
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 24,684 $ 28,799
Deferred revenue 28,507 28,734
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TOTAL CURRENT LIABILITIES 53,191 57,533
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Other long term liabilities 1,089 1,216
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TOTAL LIABILITIES 54,280 58,749
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STOCKHOLDERS' EQUITY 150,244 146,512
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TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 204,524 $ 205,261
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