Matrixone (NASDAQ:MONEE)
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MatrixOne, Inc. (NASDAQ: MONEE), a leading provider of
collaborative product lifecycle management (PLM) solutions for the
value chain(TM), today announced financial results for the first
quarter ended October 1, 2005.
For the first quarter ended October 1, 2005, total revenues were
$25.4 million, compared to $28.7 million in the same period last year.
For the first quarter, net loss was $7.2 million, or $0.14 per share,
compared to a net loss of $2.5 million, or $0.05 per share, in the
same period last year. For the first quarter ended October 1, 2005,
adjusted net loss(1), which excludes amortization of intangible assets
and stock-based compensation charges of $0.8 million, was $6.4
million, or $0.12 per share. For the first quarter ended October 2,
2004, adjusted net loss(1), which excludes amortization of intangible
assets of $0.2 million, was $2.3 million, or $0.05 per share. Net loss
and adjusted net loss for the first quarter ended October 1, 2005
includes expenses of $1.4 million, or $0.03 per share, related to the
Company's recently completed financial review and restatement.
Total current and long-term deferred revenues as of October 1,
2005 were $45.6 million, compared to $32.2 million and $42.2 million
as of October 2, 2004 and July 2, 2005, respectively. During the three
month period ended October 1, 2005, the Company deferred software
license, professional services and maintenance and customer support
services revenues related to delivery of software and commitments to
provide software functionality to certain customers aggregating
approximately $3.4 million and deferred software license and
maintenance and customer support services revenues related to a
software license transaction that included extended payment terms
related to a transaction aggregating approximately $2.4 million. In
addition, the year-over-year increase in deferred revenues also
reflects the impact of certain matters related to the Company's
recently completed financial review and restatement.
The following milestones were completed or announced during the
first quarter of fiscal 2006:
-- The Company received orders from a number of the world's most
innovative companies, including Conexant, a worldwide leader
in semiconductor solutions for broadband communications and
the digital home; Faurecia, a tier-1 automotive supplier
headquartered in France; Keppel Offshore & Marine, a leader in
offshore rigs, shipbuilding and ship conversion and repair;
Swift & Company, the world's second-largest processor of fresh
beef and pork products; and Ortho-Clinical Diagnostics, a
Johnson & Johnson company and a leading provider of high-value
diagnostic products and services for the global health care
community.
-- The Company was positioned by Gartner, Inc. in the visionary
quadrant of the Gartner Magic Quadrant for Product Life Cycle
Management. Gartner defines PLM as "creating and executing
product strategy across a product value chain, from product
ideas through service," and its 2005 Magic Quadrant for PLM
report is a review of this market and the companies that
comprise it. Companies are evaluated by Gartner based on
completeness of vision and ability to execute. According to
Gartner, "visionaries" are vendors who have a clear vision of
market direction and are focused on preparing for that, but
can still improve in terms of optimizing service delivery. The
positioning reflects the Company's history and leadership in
providing innovative, practical solutions to its customer base
and the market.
-- The Company was awarded a patent from the United States Patent
and Trademark Office for an "Interface Definition Language
Compiler" invented by Mr. Dave Tewksbary, the Company's Vice
President of Advanced Research. The compiler is software code
that enables the Company to support multiple customer
environments without writing additional code for more
effortless deployments and greater cost savings. The code
enables the Company's solutions to interact with several
computer architectures and codes, including Extensible Markup
Language (XML), Enterprise Java Beans (EJB) and Remote Method
Invocation (RMI).
-- The Company received certification by Autodesk(R) for an
integration between Autodesk Inventor(R) and the MatrixOne(R)
PLM platform as part of the Company's newly released MatrixOne
Designer Central(TM), a comprehensive design data management
application that allows a company's product designers to
collaborate with each other and with their suppliers in a
single system-regardless of the design tools being used by
each partner. Autodesk Inventor is the world's best selling
3-D mechanical design software.
Company to Host Live Conference Call and Webcast
As previously announced, the Company's management team will host a
live conference call and webcast at 5:30 p.m. eastern time today to
discuss the financial results as well as management's outlook for the
business. The conference call may be accessed in the United States by
dialing (800) 230-1096 and using passcode "MONE". The conference call
may be accessed outside of the United States by dialing (612) 288-0329
and using passcode "MONE". The conference call will be simultaneously
webcast on the Company's Investor Relations website, which can be
accessed at www.matrixone.com/investor. A replay of the webcast will
be available two hours after the call.
(1) The Company uses the financial measure adjusted net income
(loss) to supplement its consolidated financial statements, which are
presented in accordance with accounting principles generally accepted
in the United States ("GAAP"). The presentation of adjusted net income
(loss) is not meant to be a substitute for net income (loss) presented
in accordance with GAAP but rather should be evaluated in conjunction
with net income (loss). A full reconciliation of adjusted net loss to
net loss is provided below. The Company's management believes that the
presentation of adjusted net income (loss) provides useful information
to investors because this financial measure excludes amortization of
purchased technology and intangible assets, which are fixed
acquisition-related charges and stock-based compensation. For the
three month period ended October 1, 2005, adjusted net income (loss)
excludes amortization of purchased technology and intangible assets
and stock-based compensation. For the three month period ended October
2, 2004, adjusted net income (loss) excludes amortization of purchased
technology and intangible assets. Management does not consider
amortization of purchased technology and intangible assets to be part
of the Company's on-going operating activities, and does not consider
amortization of purchased technology and intangible assets, or
stock-based compensation to be meaningful in evaluating the Company's
past financial performance or future prospects. In addition, adjusted
net income (loss) is a primary financial indicator that the Company's
management uses to evaluate the Company's financial results and
forecast anticipated financial results for future periods.
Amortization of purchased technology and intangible assets relates to
the amortization of identified intangible assets, such as purchased
technology, customer relationships and trademarks and trade names,
purchased through an acquisition. Pursuant to the Company's adoption
of Statement of Financial Accounting Standards No. 123(R) "Share-Based
Payments" in the first quarter of fiscal year 2006, stock-based
compensation reflects the fair value of all share-based payments to
employees, including stock options and stock issued under certain
employee stock purchase plans. The Company's definition of adjusted
net income (loss) may differ from similar measures used by other
companies and may differ from period to period.
About MatrixOne
MatrixOne, Inc. (NASDAQ: MONEE), a leading global provider of
collaborative product lifecycle management (PLM) software and
services, enables companies to accelerate product innovation to
achieve top line revenue growth and improve bottom line profitability.
With world-class PLM solutions and a commitment to customer success,
MatrixOne is focused on helping companies across the automotive,
aerospace & defense, consumer, machinery, medical device,
semiconductor and high-tech industries solve their most challenging
new product development and introduction problems. More than 800
companies use MatrixOne's solutions to drive business value and gain a
competitive advantage, including industry leaders such as BAE Systems,
Bosch, Comau, General Electric, Honda, Johnson Controls, Linde AG,
NCR, Nokia, Philips, Porsche, Procter & Gamble, Sony Ericsson,
STMicroelectronics and Toshiba. MatrixOne (www.matrixone.com) is
headquartered in Westford, Massachusetts, with locations throughout
North America, Europe and Asia-Pacific.
MatrixOne and the MatrixOne logo are registered trademarks, and "a
leading provider of collaborative product lifecycle management (PLM)
solutions for the value chain" is a trademark of MatrixOne, Inc. All
other trademarks and service marks are the property of their
respective owners.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 - Forward-looking statements in this release do not
constitute guarantees of future performance. For this purpose, any
statements contained herein that are not statements of historical fact
may be deemed to be forward-looking statements. Without limiting the
foregoing, the words "believes," "anticipates," "plans," "expects,"
"intends," and similar expressions are intended to identify
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause our actual results
to differ materially from those anticipated. The risks and
uncertainties that may affect forward-looking statements include,
among others: the continued listing of our common stock on the NASDAQ
Stock Market. For a more detailed discussion of the risks and
uncertainties of our business, please refer to our periodic reports
and registration statements filed with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the fiscal
year ended July 2, 2005 and our Quarterly Report on Form 10-Q for the
fiscal quarter ended April 2, 2005. The forward-looking statements
included in this press release represent our views as of the date of
this press release. We anticipate that subsequent events and
developments may cause our views to change. We assume no obligation to
update any forward-looking information contained in this press release
or with respect to the announcements described herein.
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MATRIXONE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
---------------------------
October 1, October 2,
2005 2004
------------- -------------
(As Restated)
Revenues:
Software license $6,347 $11,174
Service 19,073 17,508
------------- -------------
Total revenues 25,420 28,682
------------- -------------
Cost of Revenues:
Software license 447 965
Amortization of purchased technology 199 133
Service (1) 11,240 11,440
------------- -------------
Total cost of revenues 11,886 12,538
------------- -------------
Gross Profit 13,534 16,144
------------- -------------
Operating Expenses:
Selling and marketing (1) 9,395 9,887
Research and development (1) 7,134 6,338
General and administrative (1) 4,664 2,621
Amortization of intangible assets 116 70
------------- -------------
Total operating expenses 21,309 18,916
------------- -------------
Loss from Operations (7,775) (2,772)
Other Income, Net 723 332
------------- -------------
Loss Before Income Taxes (7,052) (2,440)
Provision for Income Taxes 133 51
------------- -------------
Net Loss $(7,185) $(2,491)
============= =============
Basic and Diluted Net Loss Per Share $(0.14) $(0.05)
============= =============
Shares Used in Computing Basic and Diluted
Net Loss Per Share 51,771 50,295
============= =============
------------------------------------------ ---------------------------
(1) The following summarizes the allocation of stock-based
compensation included in the costs and expenses noted above:
Cost of service revenue $132
Selling and marketing 168
Research and development 132
General and administrative 88
-------------
Total stock-based compensation $520
=============
------------------------------------------ ---------------------------
Reconciliation of Adjusted Net Loss(1):
Net Loss $(7,185) $(2,491)
Adjustments:
Amortization of purchased technology 199 133
Amortization of intangible assets 116 70
Stock-based compensation 520 --
------------- -------------
Adjusted Net Loss(1) $(6,350) $(2,288)
============= =============
Adjusted Basic and Diluted Net Loss Per
Share $(0.12) $(0.05)
============= =============
Shares Used in Computing Pro Forma Basic
and Diluted Net Loss Per Share 51,771 50,295
============= =============
(1) The Company uses the financial measure adjusted net income (loss)
to supplement its consolidated financial statements, which are
presented in accordance with accounting principles generally
accepted in the United States ("GAAP"). The presentation of
adjusted net income (loss) is not meant to be a substitute for net
income (loss) presented in accordance with GAAP but rather should
be evaluated in conjunction with net income (loss). A full
reconciliation of adjusted net loss to net loss is provided below.
The Company's management believes that the presentation of
adjusted net income (loss) provides useful information to
investors because this financial measure excludes amortization of
purchased technology and intangible assets, which are fixed
acquisition-related charges and stock-based compensation. For the
three month period ended October 1, 2005, adjusted net income
(loss) excludes amortization of purchased technology and
intangible assets and stock-based compensation. For the three
month period ended October 2, 2004, adjusted net income (loss)
excludes amortization of purchased technology and intangible
assets. Management does not consider amortization of purchased
technology and intangible assets to be part of the Company's
on-going operating activities, and does not consider amortization
of purchased technology and intangible assets, or stock-based
compensation to be meaningful in evaluating the Company's past
financial performance or future prospects. In addition, adjusted
net income (loss) is a primary financial indicator that the
Company's management uses to evaluate the Company's financial
results and forecast anticipated financial results for future
periods. Amortization of purchased technology and intangible
assets relates to the amortization of identified intangible
assets, such as purchased technology, customer relationships and
trademarks and trade names, purchased through an acquisition.
Pursuant to the Company's adoption of Statement of Financial
Accounting Standards No. 123(R) "Share-Based Payments" in the
first quarter of fiscal year 2006, stock-based compensation
reflects the fair value of all share-based payments to employees,
including stock options and stock issued under certain employee
stock purchase plans. The Company's definition of adjusted net
income (loss) may differ from similar measures used by other
companies and may differ from period to period.
MATRIXONE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
October 1, July 2,
2005 2005
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $100,501 $107,677
Accounts receivable, net 25,995 28,620
Prepaid expenses and other current assets 10,777 8,822
------------ ------------
Total current assets 137,273 145,119
Property and Equipment, Net 5,714 6,096
Goodwill 11,877 11,929
Other Intangible Assets, Net 7,330 7,645
Other Assets 2,162 2,171
------------ ------------
$164,356 $172,960
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $4,825 $5,941
Accrued expenses 18,808 23,034
Deferred revenue 39,235 37,040
------------ ------------
Total current liabilities 62,868 66,015
------------ ------------
Long Term Deferred Revenue 6,410 5,163
Stockholders' Equity:
Common stock 518 518
Additional paid-in capital 228,010 227,489
Accumulated deficit (135,273) (128,088)
Accumulated other comprehensive income 1,823 1,863
------------ ------------
Total stockholders' equity 95,078 101,782
------------ ------------
$164,356 $172,960
============ ============
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