MRO Software Reports Second Quarter Results; Strong Growth in Software License Revenues and Operating Margins Drive Increased E

MRO Software, Inc. (Nasdaq: MROI), the leading provider
of asset and service management solutions, today announced results for
the Company's second quarter of fiscal 2006 ended March 31, 2006.
   Total revenues for the second quarter were $57.2 million compared
with $43.2 million for the second quarter last year, an increase of 32
percent. The Company reported net income for the second quarter of
$6.9 million or $0.26 per diluted share, compared with net income of
$0.6 million or $0.02 per diluted share for the same quarter of last
year.
   Revenues from software license sales for the second quarter were
$17.7 million, compared with $10.2 million for the same quarter last
year, an increase of 74 percent. On a fiscal year-to-date basis
through March 31, 2006, software license revenue has increased 22
percent over the first half of fiscal 2005. Support and services
revenues were $39.5 million for the second quarter, compared with
$33.0 million for the same quarter last year, an increase of 20
percent.
   During the second quarter, the Company sold 197 software licenses.
Customers across a range of industries and geographies purchased MRO
Software products during the quarter including: Amtrak, BA Energy,
City of Asheville, City of Corpus Christi, Danbury Hospital, IAP World
Services, Inc., Mohegan Sun, Mount Sinai Medical Center, Regional
Municipality of York, Saudi Business Machines Ltd, University of Texas
Medical Branch, U.S. Air Force, and the U.S. Army.
   The balance sheet as of March 31, 2006 contained $143.2 million in
cash and marketable securities and no long-term debt. This compares
with $133.2 million in cash and marketable securities as of September
30, 2005, an increase of $10 million for the first half of the fiscal
year. As of March 31, 2006, deferred revenue was $36.9 million, and
days sales outstanding (DSO) was 72 days.
   "We delivered very strong financial results in our fiscal second
quarter. Our performance was driven by record quarterly revenue and
improved productivity throughout all our operations," said Chip
Drapeau, president and CEO, MRO Software. "Sales of Maximo Enterprise
Suite (MXES) continued to gain momentum, representing 50 percent of
our software revenue for the quarter. The combination of MXES,
vertical solutions and our IT and Service Management products has
given us a strong competitive boost."
   "We have worked hard to improve our productivity and drive
increases in operating margins and earnings," said Peter Rice,
executive vice president and CFO, MRO Software. "At the same time our
balance sheet has continued to strengthen with increases in cash and
deferred maintenance revenues."
   For fiscal year 2006, the Company has updated the guidance
provided last quarter. The Company expects overall revenue growth will
remain in the range of 5 to 10 percent over fiscal 2005, with software
revenues expected to remain in the range of 10 to 20 percent over
fiscal 2005. As a result of the improved operating efficiencies, the
Company has increased its guidance for its fiscal 2006 earnings. The
Company now expects fiscal 2006 earnings to be in a range of $0.85 to
$0.90 per diluted share; this represents a more than 40 percent
increase over the range of $0.60 to $0.65 per diluted share as stated
in the Company's previous earnings guidance.
   The Company will conduct a conference call to discuss the
quarter's results on Thursday, April 20, 2006 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 [phone]; all
participants should use conference ID 7599559. A digital recording of
the call will be available beginning two hours after the call and will
be available through January 26, 2006. To access the replay within the
U.S. and Canada, dial [phone], international callers should
dial [phone]; all participants should use conference the same
ID: 7599559.
   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 asset and service
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 and more than 300,000
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 stagnation in the market for
our traditional products; increased competitive pressures; slower than
anticipated customer acceptance of our new products; the Company's
reliance on, and unanticipated delays or obstacles to, larger software
license transactions; and those factors discussed in the Section
entitled "Risk Factors" in Item 2 of our Quarterly Report on Form 10-Q
for the quarter ended December 31, 2005.

   Maximo(R) is a registered trademark, and MRO Software(TM) and
MXES(TM) are trademarks, of MRO Software, Inc.

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                          MRO SOFTWARE, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (unaudited)

                                   Three Months Ended Six Months Ended
                                         March 31,        March 31,
                                       2006    2005     2006    2005
                                    --------- ------- -------- -------
(in thousands, except
  per share data)
  Revenues:
   Software                        $  17,662  10,174 $ 30,477 $24,998
   Support and services               39,550  33,005   75,867  65,537
                                    --------- ------- -------- -------
     Total revenues                   57,212  43,179  106,344  90,535
                                    --------- ------- -------- -------
   Cost of revenues:
    Software                           1,917   1,199    3,300   2,479
    Support and services              17,373  16,320   33,547  31,935
                                    --------- ------- -------- -------
     Total cost of revenues           19,290  17,519   36,847  34,414
                                    --------- ------- -------- -------
   Gross profit                       37,922  25,660   69,497  56,121

   Operating expenses:
    Sales and marketing               15,731  13,351   29,332  28,582
    Product development                7,789   6,958   15,242  13,738
    General and administrative         4,983   4,550    9,611   9,120
                                    --------- ------- -------- -------
     Total operating expenses         28,503  24,859   54,185  51,440
                                    --------- ------- -------- -------
   Income from operations              9,419     801   15,312   4,681

    Interest income, net               1,215     647    2,440   1,118
    Other income/(expense), net          208    (499)      17      71
                                    --------- ------- -------- -------
   Income before income taxes         10,842     949   17,769   5,870

   Provision for income taxes          3,908     330    6,619   2,088
                                    --------- ------- -------- -------
   Net income                      $   6,934 $   619 $ 11,150 $ 3,782
                                    ========= ======= ======== =======
   Net income per share, basic     $    0.27 $  0.02 $   0.43 $  0.15
   Net income per share, diluted   $    0.26 $  0.02 $   0.42 $  0.15

   Shares used to calculate
    net income per share
      Basic                           25,722  25,238   25,658  25,141
      Diluted                         26,603  25,727   26,597  25,559


                          MRO SOFTWARE, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (unaudited)

                                                 March 31,  Sept. 30, 
                                                   2006       2005
                                                ---------------------
(in thousands)     ASSETS

Cash and cash equivalents                        $131,250   $120,301
Marketable securities                               6,131      5,130
Accounts receivable, net                           45,756     40,362
Other current assets                                9,187      6,678
                                                  --------   --------
 TOTAL CURRENT ASSETS                             192,324    172,471
                                                  --------   --------

Marketable securities                               5,774      7,743
Property and equipment, net                         7,058      7,210
Intangible assets, net                             48,598     49,455
Other assets                                        8,677      9,491
                                                  --------   --------
 TOTAL ASSETS                                    $262,431   $246,370
                                                 =========  =========

  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                               $27,169   $ 30,116
Deferred revenue                                   36,496     31,718
                                                  --------   --------
 TOTAL CURRENT LIABILITIES                         63,665     61,834
                                                  --------   --------

Other long term liabilities                         2,464      2,830
                                                  --------   --------
 TOTAL LIABILITIES                                 66,129     64,664
                                                  --------   --------

 STOCKHOLDERS' EQUITY                             196,302    181,706
                                                  --------   --------
 TOTAL LIABILITIES &
   STOCKHOLDERS' EQUITY                          $262,431   $246,370
                                                 =========   ========
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