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 SECOND QUARTER RESULTS
Vertical Solutions Drive MAXIMO Results
BEDFORD, Mass., April 15, 2004 - MRO Software, Inc. (Nasdaq: MROI), the leading
provider of strategic asset management solutions, today announced results for
the Company's second quarter ended March 31, 2004.
Total revenues for the second quarter were $44.6 million compared with $39.4
million for the second quarter last year, an increase of 13 percent. On a GAAP
basis, the Company reported net income for the second quarter of $1.4 million or
$0.05 per diluted share, compared with a net loss of $0.2 million or $0.01 per
share for the second quarter of fiscal 2003.
Pro forma net income (see Schedule A) for the second quarter was $2.0 million,
or $0.08 per diluted share compared with pro forma net income of $0.5 million,
or $0.02 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 $11.5 million,
compared with $7.7 million for the same quarter last year, an increase of 49
percent. Support and services revenues were $33.2 million for the second
quarter, compared with $31.7 million for the same quarter last year, an increase
of 5 percent.
During the second quarter, the Company sold 215 software licenses. Customers
across a range of industries and geographies purchased MRO Software products
during the quarter including: ABB Global, Aramark, Aventis Pharma, China
National Offshore Oil Company (CNOOC), Cornell University, Fort Worth Water
Department, Honda Manufacturing, National Park Service, Sarasota County
Utilities, Seagate, State of Michigan, Scottish and Southern Energy, Taylor
Woodrow Construction, Thames Water International Business Systems, The British
Library, U.S. Army, U.S. Department of Energy, U.S. Department of Defense, U.S.
Navy and the University of Western Australia.
The balance sheet as of March 31, 2004 contained $96.5 million in cash and
marketable securities and no long-term debt. For the second quarter, deferred
revenue increased to $32.1 million, and days sales outstanding (DSO) improved to
62 days.
"We continue to focus and execute on our two most important initiatives -
industry solutions and MAXIMO 6," said Chip Drapeau, president and CEO, MRO
Software. "With our industry-specific MAXIMO solutions we are able to
differentiate MAXIMO from the competition and drive deeper into our core
markets. At the same time, our investment in MAXIMO 6 will deliver the next
generation of functionality for our traditional customer base, and open the door
into new markets, impacting our performance in calendar 2005."
"I'm pleased with the financial strength of the Company," said Peter Rice,
executive vice president and CFO, MRO Software. "During the quarter we reduced
DSO and generated more than $6 million in cash to bolster our already strong
balance sheet. As a result, we are well positioned to fund our current and
future growth initiatives."
Rice continued, "For fiscal year 2004, the Company reaffirms 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 third quarter of fiscal 2004, we expect revenues to be in
the range of $45 to $47 million, and we expect earnings to be in the range of
$0.08 to $0.10 per share on a GAAP basis, and between of $0.10 to $0.12 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 the related tax effects.
The Company will conduct a conference call to discuss the quarter's results on
Thursday, April 15, 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
until April 22, 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,
volatility in results as a function of a small number of large license
transactions, slower than expected benefits from our alliance partner program,
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, 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 Six Months Ended
March 31, March 31,
-------------------- ---------------------
2004 2003 2004 2003
-------- -------- -------- --------
(in thousands, except per share data)
Revenues:
Software $ 11,452 $ 7,652 $ 23,662 $ 20,337
Support and services 33,170 31,736 65,862 62,939
-------- -------- -------- --------
Total revenues 44,622 39,388 89,524 83,276
-------- -------- -------- --------
Cost of revenues:
Software 1,236 511 2,296 1,517
Support and services 15,407 14,513 30,180 29,441
Amortization of acquired technology 659 844 1,411 1,688
-------- -------- -------- --------
Total cost of revenues 17,302 15,868 33,887 32,646
-------- -------- -------- --------
Gross profit 27,320 23,520 55,637 50,630
Operating expenses:
Sales and marketing 13,835 14,292 27,545 29,691
Product development 7,097 6,388 14,103 13,144
General and administrative 4,389 3,708 8,854 8,354
Amortization of other intangibles 204 230 409 478
-------- -------- -------- --------
Total operating expenses 25,525 24,618 50,911 51,667
-------- -------- -------- --------
Income/(loss) from operations 1,795 (1,098) 4,726 (1,037)
Interest income 244 181 448 391
Other income/(expense), net 113 643 (327) 981
-------- -------- -------- --------
Income/(loss) before income taxes 2,152 (274) 4,847 335
Provision/(benefit) for income taxes 753 (96) 1,696 118
-------- -------- -------- --------
Net income/(loss) $ 1,399 $ (178) $ 3,151 $ 217
======== ======== ======== ========
Net income/(loss) per share, basic $ 0.06 $ (0.01) $ 0.13 $ 0.01
-------- -------- -------- --------
Net income/(loss) per share, diluted $ 0.05 $ (0.01) $ 0.12 $ 0.01
-------- -------- -------- --------
Shares used to calculate net income/(loss) per share
Basic 24,796 24,407 24,713 24,356
Diluted 25,460 24,407 25,330 24,568
MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA, AS ADJUSTED
Schedule A
(unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
-------------------- ---------------------
2004 2003 2004 2003
-------- -------- -------- --------
(in thousands, except per share data)
GAAP net income/(loss) $ 1,399 $ (178) $ 3,151 $ 217
Pro forma adjustments
Amortization of other intangibles 204 230 409 478
Amortization of acquired technology 659 844 1,411 1,688
Related tax effects (243) (347) (521) (660)
-------- -------- -------- --------
Total pro forma adjustments 620 727 1,299 1,506
Pro forma net income, as adjusted $ 2,019 $ 549 $ 4,450 $ 1,723
-------- -------- -------- --------
Pro forma diluted net income per share,
as adjusted $ 0.08 $ 0.02 $ 0.18 $ 0.07
-------- -------- -------- --------
Shares used to calculate pro forma net income
per share, as adjusted 25,460 24,659 25,330 24,568
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 2004
and 2003 is adjusted to exclude the amortization of acquired technology and
other intangibles and the 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)
March 31, September 30,
2004 2003
-------- --------
(in thousands)
ASSETS
Cash and cash equivalents $ 55,227 $ 73,662
Marketable securities 1,101 1,102
Accounts receivable, net 30,590 28,833
Other current assets 8,344 6,419
-------- --------
TOTAL CURRENT ASSETS 95,262 110,016
-------- --------
Marketable securities 40,177 19,809
Property and equipment, net 8,469 8,239
Intangible assets, net 52,089 53,910
Other assets 13,632 13,287
-------- --------
TOTAL ASSETS $209,629 $205,261
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 24,414 $ 28,799
Deferred revenue 31,015 28,734
-------- --------
TOTAL CURRENT LIABILITIES 55,429 57,533
-------- --------
Other long term liabilities 1,453 1,216
-------- --------
TOTAL LIABILITIES 56,882 58,749
-------- --------
STOCKHOLDERS' EQUITY 152,747 146,512
-------- --------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $209,629 $205,261
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