Msc.Software (NYSE:MNS)
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MSC.Software Completes Settlement Term Under FTC Agreement and
Announces Preliminary Second Quarter Results
Second Quarter Earnings Release and Conference Call Scheduled for Wednesday,
July 28
SANTA ANA, Calif., July 1 /PRNewswire-FirstCall/ -- MSC.Software Corp.
(NYSE:MNS) today announced preliminary second quarter results and also
announced the completion of the settlement term set forth under the agreement
with the FTC in October 2002.
Based upon preliminary reports, the Company expects total revenue for the
second quarter to be in the range of $65 -- $67 million. In addition, the
legal fees and other associated costs of the ongoing independent review by
outside counsel have exceeded initial forecasts for the second quarter by more
than a million dollars and are expected to approach $2 million for the quarter
or the equivalent of $0.03 per share. Including these legal and other
associated fees, the Company expects that diluted earnings per share will be in
the range of breakeven to $0.03. The Company had previously provided guidance
for the second quarter of revenue between $65 -- $70 million, and EPS between
$0.06 -- $0.08.
June 17th marked the end of the term in which certain MSC.Nastran customers
with paid-up licenses in the U.S. could change their agreement with
MSC.Software and obtain a refund of their outstanding MSC.Nastran license fees,
if the customer switched to the new Nastran provider. During the twelve-month
term, two customers, representing three separate contracts, exercised their
option to obtain refunds, totaling approximately $1,500,000. One refund will be
accounted for in the second quarter, the other two were accounted for in the
fourth quarter of 2003. Both of these customers continue to be important
Virtual Product Development clients using the full range of MSC.Software
software and service products.
"We are pleased to have this major step in the FTC agreement behind us,
allowing a more efficient focus on customer requirements," said Frank Perna,
chairman and chief executive officer of MSC.Software. "Unfortunately, the fees
relating to the independent review were more than we had forecasted and that
will have a negative impact on our EPS for the quarter. Earnings were also
negatively impacted by revenue mix."
"Our business is on solid ground; we are making great progress on key software
and services initiatives, our sales pipeline is growing and our cash balance is
about $60 million at June 30, 2004," continued Mr. Perna.
The Company will announce its second quarter results on Wednesday, July 28,
2004, before the market opens. At that time, the Company will provide updated
revenue, net income and EPS results as well as guidance for fiscal year 2004.
A conference call and web cast to discuss second quarter results is scheduled
for July 28th at 8:30 am Pacific time. The dial-in number for the live call
is: US -- (800) 374-0151 and International -- (706) 634-4981. The URL for the
web cast is http://www.mscsoftware.com/ir/.
Except for the historical information contained herein, certain matters
discussed in this news release constitute forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those projected. Such statements are based on management's
current expectations and are subject to a number of factors and uncertainties,
which could cause actual results to differ materially from those described in
the forward-looking statements. Other factors which could cause such results
to differ materially from those described in the forward-looking statements
include delays in developing, completing, or shipping new or enhanced products,
the ability to assimilate acquisitions into MSC's operations, foreign currency
translations, and other risks and uncertainties that are detailed in the
Company's annual report on Form 10-K and other reports filed by the Company
with the Securities and Exchange Commission.
About MSC.Software Corporation
MSC.Software (NYSE:MNS) is the leading global provider of simulation software,
with related services and systems, 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,
services and systems. MSC.Software employs more than 1200 people in 22
countries. For additional information about MSC.Software's products and
services, please visit http://www.mscsoftware.com/.
http://www.mscsoftware.com/irDATASOURCE: MSC.Software Corporation
CONTACT: Press, Todd Evans, Media Relations, +1-714-445-3066,
, or Investors, Joanne Keates, Vice-President,
Investor Relations, +1-714-444-8551, , both of
MSC.Software
Web site: http://www.mscsoftware.com/