Msc.Software (NYSE:MNS)
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MSC.Software Announces Certain Fourth Quarter and Year End
Financial Information
SANTA ANA, Calif., Feb. 16 /PRNewswire-FirstCall/ -- MSC.Software Corp.
(NYSE:MNS), today announced certain financial information for the fourth
quarter and year ended December 31, 2004. As previously disclosed,
MSC.Software will restate its financial statements for the periods subsequent
to December 31, 2000. Since the Company is unable to quantify the exact impact
of the restatement on its financial results at this time, the Company can only
give limited information regarding its fourth quarter and year end results.
Cash and investments at December 31, 2004 stood at $76.6 million compared to
$71.8 million at September 30, 2004 and $48.5 million at December 31, 2003.
Cash flow from operations for FY2004 was $35.0 million. Gross accounts
receivable were $74.7 million at December 31, 2004. Days sales outstanding
(DSOs) were 88 days at December 31, 2004 this compares to 80 days at September
30, 2004.
During the fourth quarter, operating expenses totaled $47.5 million, including
expenses related to the Audit Committee's independent review of approximately
$2.7 million. Net research and development expense totaled $7.8 million
compared to $6.4 million in the fourth quarter last year. In the fourth
quarter, capitalized software totaled $2.3 million compared to $3.8 million in
the fourth quarter last year. Sales and marketing expense totaled $20.6
million compared to $22.1 million in the fourth quarter last year. General and
administrative expense, including expenses of approximately $2.7 million
related to the independent review, totaled $17.5 million compared to $10.4
million in the fourth quarter of last year. In the fourth quarter total other
expenses were $381,000.
For the fiscal year ended December 31, 2004, operating expenses totaled $176.8
million, including total expenses related to the Audit Committee's independent
review of approximately $10 million. Net research and development expense
totaled $27.6 million compared to $27.2 million for the fiscal year ended
December 31, 2003. Capitalized software totaled $14.2 million compared to
$12.7 million in FY2003. Sales and marketing expense totaled $78.2 million
compared to $79.0 million in FY2003. General and administrative expense,
including expenses of approximately $10.2 million related to the independent
review, totaled $64.6 million compared to $46.0 million in FY2003. For FY2004,
total other expenses were $1.8 million.
The global sales pipeline, which is the sales management and revenue
forecasting tool that tracks potential customer contracts and engagements, grew
to $333 million. There is no assurance that the pipeline amounts will result
in executed contracts or revenues. In the fourth quarter, the America's
pipeline rose to $125 million and key software and service transactions were
signed with customers including United Technologies, Ford, Delphi, and GM. In
Europe, the pipeline rose to $90 million and key software and service
engagements were signed with customers including Airbus, Renault, FIAT and
Volvo. In Asia-Pacific, the pipeline totaled $118 million and key software and
service contracts were signed with customers including Fuji Photo, Fujitsu
Nagano, Seiko Epson and Korean Air.
"MSC delivered solid performance in 2004, supported by the strength of our
customer base and the focused efforts of our dedicated employees. I am very
pleased to be stepping into this position as we end the year with more than $76
million in cash," said William Weyand, chairman and CEO, MSC.Software. "With
the independent review complete, we can concentrate on getting the restatements
completed and filing our SEC documents. We have a solid product strategy and a
passionate team who are wholly dedicated to making MSC.Software the absolute
best company it can be."
Conference Call
A conference call to discuss fourth quarter results is being held today at 8:30
am PST. This conference call is being Webcast and can be accessed at the
following URL: http://www.mscsoftware.com/ir/, or by dialing in to (800)
374-0151 in the U.S. or to (706) 634-4981 for International callers. To
participate in the live conference call, use the following conference ID code:
3553723.
An archived version of the conference call will be available at
http://www.mscsoftware.com/ir/. The teleconference replay will be available
for 48 hours after the call at: U.S. (800) 642-1687 or Intl. (706) 645-9291
using the conference ID code: 1727485.
About MSC.Software Corporation
MSC.Software (NYSE:MNS) is the leading global provider of virtual product
development (VPD) products including simulation software and services that help
companies make money, save time and reduce costs associated with designing and
testing manufactured products. MSC.Software works with thousands of companies
in hundreds of industries to develop better products faster by utilizing
information technology, software and services. MSC.Software employs more than
1300 people in 22 countries. For additional information about MSC.Software's
products and services, please visit http://www.mscsoftware.com/.
DATASOURCE: MSC.Software Corporation
CONTACT: Investor, Joanne Keates, Vice President, Investor Relations,
+1-714-444-8551, , or Media, Todd Evans,
Corporate Communications, +1-714-445-3066, , both of
MSC.Software Corporation
Web site: http://www.mscsoftware.com/ir
Web site: http://www.mscsoftware.com/