EXHIBIT 99
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[LOGO]
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
MAXIMO LICENSE REVENUES INCREASE 21 PERCENT YEAR OVER YEAR
BEDFORD, MASS., JANUARY 20, 2005 - MRO Software, Inc. (Nasdaq: MROI), the
leading provider of strategic asset management solutions, today announced
results for the Company's first quarter of fiscal 2005 ended December 31, 2004.
Total revenues for the first quarter were $47.4 million compared with $44.9
million for the first quarter last year, an increase of 6 percent. On a GAAP
basis, the Company reported net income for the first quarter of $3.2 million or
$0.12 per diluted share, compared with net income of $1.8 million or $0.07 per
diluted share for the same quarter of last year, an increase of 78 percent.
Pro forma net income (see Schedule A) for the first quarter was $3.6 million, or
$0.14 per diluted share compared with pro forma net income of $2.4 million, or
$0.10 per diluted share for the same quarter last year, an increase in EPS of 40
percent. Pro forma results are adjusted for the amortization of acquired
technology and other intangibles and their related tax effects.
Revenues from software license sales for the first quarter were $14.8 million,
compared with $12.2 million for the same quarter last year, an increase of 21
percent. Support and services revenues were $32.5 million for the first quarter,
compared with $32.7 million for the same quarter last year, a decrease of 1
percent.
During the first quarter, the Company sold 243 software licenses. Customers
across a range of industries and geographies purchased MRO Software products
during the quarter including:
Archer Daniels Midland, Arizona Public Service Co., Atlantic Copper, BP
International Ltd, BAA, Caritas Health Group, CB Richard Ellis, Clark County
School District, DaimlerChrysler AG, Dongfeng Cummins Engine Co., Florida
Airport Council, Fortum Power & Heat, GE Healthcare, Genesis Power Ltd.,
Independence Air, INI Steel, Johnson & Johnson Spa Italy, Konica Minolta Opto,
Inc., LaFarge Cement UK, Mohegan Sun Casino, NAVSEA Headquarters, Scottish and
Southern Energy, Taylor Woodrow Developments Ltd., Texas Municipal Power Agency,
US Airforce, Edwards AFB and the US Dept. of State.
The balance sheet as of December 31, 2004 contained $114.7 million in cash and
marketable securities and no long-term debt. For the first quarter of fiscal
2005, deferred revenue was $29.1 million, and days sales outstanding (DSO) was
68 days.
"The first quarter results showed continued adoption of our industry solutions
and provided us with an excellent start to fiscal 2005," said Chip Drapeau,
president and CEO, MRO Software. "We increased our penetration in the utilities,
transportation and energy sectors, and added a significant customer for
facilities management in the retail space. We remain on target for our release
of Maximo Enterprise Suite later this quarter, with all development, marketing,
service and support plans on schedule."
"The Company continued its solid financial performance this quarter, with
increases in software sales, earnings and cash," said Peter Rice, executive vice
president and CFO, MRO Software. "As a result of these continued strong results,
the Company is well-positioned for the launch of Maximo Enterprise Suite."
The Company reaffirmed its existing guidance for fiscal 2005, and expects
software revenues to grow in the range of 10 to 20 percent above fiscal 2004
results. It is anticipated that operating margins will continue to increase. As
a result, the Company expects earnings to increase in the range of 15 to 25
percent over fiscal 2004 results on a pro forma basis. Consistent with prior
performance, and due to the timing of the release of the Maximo Enterprise
Suite, the Company still expects most of the anticipated revenue growth to occur
in the second half of the fiscal year. Due to a strong first fiscal quarter, and
given its historical quarterly fluctuations, the Company expects revenues for
the second quarter of fiscal 2005 to be in the range of $44 to $46 million, GAAP
earnings to be in the range of $0.06 to $0.08 per share, and pro forma earnings
to be in the range of $0.08 to $0.10 per share.
Expected results on a pro forma basis are adjusted for the amortization of
acquired technology and other intangibles and their related tax effects.
The Company will conduct a conference call to discuss the quarter's results on
Thursday, January 20, 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
through January 27, 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: 3244777.
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 release of Maximo Enterprise Suite or our
industry-specific offerings, slower than anticipated customer acceptance of our
new products, 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, 2004.
# # #
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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2004 2003
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(in thousands, except per share data)
Revenues:
Software $ 14,824 $ 12,210
Support and services 32,532 32,692
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Total revenues 47,356 44,902
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Cost of revenues:
Software 761 1,060
Support and services 15,615 14,773
Amortization of acquired technology 519 752
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Total cost of revenues 16,895 16,585
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Gross profit 30,461 28,317
Operating expenses:
Sales and marketing 15,231 13,710
Product development 6,780 7,006
General and administrative 4,478 4,465
Amortization of other intangibles 92 205
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Total operating expenses 26,581 25,386
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Income from operations 3,880 2,931
Interest income 471 204
Other income/(expense), net 570 (440)
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Income before income taxes 4,921 2,695
Provision for income taxes 1,758 943
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Net income $ 3,163 $ 1,752
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Net income per share, basic $ 0.13 $ 0.07
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Net income per share, diluted $ 0.12 $ 0.07
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Shares used to calculate net income per share
Basic 25,041 24,629
Diluted 25,392 25,200
MRO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA, AS ADJUSTED
Schedule A
(unaudited)
Three Months Ended
December 31,
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2004 2003
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(in thousands, except per share data)
GAAP net income $ 3,163 $ 1,752
Pro forma adjustments
Amortization of other intangibles 92 205
Amortization of acquired technology 519 752
Related tax effects (214) (278)
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Total pro forma adjustments 397 679
Pro forma net income, as adjusted $ 3,560 $ 2,431
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Pro forma diluted net income per share,
as adjusted $ 0.14 $ 0.10
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Shares used to calculate pro forma net income
per share, as adjusted 25,392 25,200
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 2005 and 2004 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,
2004 2004
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(in thousands) ASSETS
Cash and cash equivalents $ 64,200 $ 56,982
Marketable securities 37,510 36,152
Accounts receivable, net 35,940 36,636
Other current assets 6,826 6,542
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TOTAL CURRENT ASSETS 144,476 136,312
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Marketable securities 12,984 15,273
Property and equipment, net 7,520 7,227
Intangible assets, net 51,267 52,309
Other assets 11,634 11,600
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TOTAL ASSETS $ 227,881 $ 222,721
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 28,181 $ 28,778
Deferred revenue 28,407 29,373
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TOTAL CURRENT LIABILITIES 56,588 58,151
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Other long term liabilities 3,316 3,435
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TOTAL LIABILITIES 59,904 61,586
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STOCKHOLDERS' EQUITY 167,977 161,135
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TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 227,881 $ 222,721
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