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MRO Software Reports First Quarter Results

  • 23 January, 2004 12:35

<p>For Immediate Release</p>
<p>MRO Software Reports First Quarter Results</p>
<p>Solid Performance; Earnings Double Over Prior Year</p>
<p>BEDFORD, Mass., January 23, 2004 - MRO Software, Inc. (Nasdaq: MROI), the leading provider of strategic asset management solutions, today announced results for the Company’s first quarter ended December 31, 2003.</p>
<p>Total revenues for the first quarter were $44.9 million compared with $43.9 million for the first quarter last year, an increase of 2 percent. On a GAAP basis, the Company reported net income for the first quarter of $1.8 million or $0.07 per diluted share, compared with net income of $0.4 million or $0.02 per diluted share for the first quarter of fiscal 2003.</p>
<p>Pro forma net income (see Schedule A) for the first quarter was $2.4 million, or $0.10 per diluted share compared with pro forma net income of $1.2 million, or $0.05 per diluted share for same quarter last year. Pro forma results are adjusted for the amortization of acquired technology and other intangibles and their related tax effects.</p>
<p>For the first quarter, revenues from software license sales were $12.2 million, compared with $12.7 million for the same quarter last year, a decrease of 4 percent. Support and services revenues were $32.7 million for the first quarter, compared with $31.2 million for the same quarter last year, an increase of 5 percent.</p>
<p>During the first quarter, the Company sold 239 software licenses. Customers across a range of industries and geographies purchased MRO Software products during the quarter including: aerospace, automotive, facilities, financial services, homeland security, oil &amp; gas, professional services, public sector, utilities and pharmaceuticals. Customers included: Arabian Construction Co, Bay Area Rapid Transit Authority, BP Amoco, China National Offshore Oil Company, Fluor International, General Services Administration (GSA), International Power Australia, Kerr-McGee, Kuwait National Petroleum Co., Nippon Goshei, Smurfit, Toshiba and the United States Coast Guard.</p>
<p>The balance sheet as of December 31, 2003 contained $90.3 million in cash and marketable securities and no long-term debt. For the first quarter, deferred revenue was $29.6 million, and days sales outstanding (DSO) was 63 days.</p>
<p>“The first quarter results provide us with a good start to fiscal 2004. We were able to maintain our momentum in MAXIMO sales and win rates and deliver improved profitability,” said Chip Drapeau, president and CEO, MRO Software. “In addition we continued to build the foundation for our future growth in IT Asset Management and vertical markets with improved sales of MAXIMO MainControl, and a new vertical offering for the Pharmaceuticals industry. These vertical products leverage the MAXIMO Internet platform and increase our penetration in key industries.”</p>
<p>“I’m pleased with our financial performance this quarter,” said Peter Rice, executive vice president and CFO, MRO Software. “We’re maintaining the strong balance sheet and financial fundamentals that are critical to support our future growth.”</p>
<p>Rice continued, “For fiscal year 2004, the Company confirms its expectation for earnings to grow into the range of $0.30-$0.40 per share on a GAAP basis or $0.40-$0.50 per share on a pro forma basis. These expected earnings are based on revenue growth of approximately 5 percent above fiscal 2003 results. Specifically for the second quarter of fiscal 2004 we expect revenues to be in the range of $41 to $43 million, and while sequentially down, we expect earnings and revenue to grow over prior year results. Earnings for the second quarter should fall in the range of $0.02 to $0.04 per share on a GAAP basis, and between of $0.04 to $0.06 per share on a pro forma basis.”</p>
<p>Expected results on a pro forma basis are adjusted for the amortization of acquired technology and other intangibles and their related tax effects (see Schedule A).</p>
<p>A webcast of the Company conference call to discuss the quarter's results is available at: www.mro.com/investor <http:>. 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 <http:>.</http:></http:></p>
<p>About MRO Software, Inc.
MRO Software is the leading provider of strategic asset management solutions. The Company’s integrated suite of applications optimises performance, improves productivity and service levels and enables asset-related sourcing and procurement across the entire spectrum of strategic assets.</p>
<p>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, labour efficiency, material optimisation, software license compliance, lease management, warranty and service management and provisioning across the asset base.</p>
<p>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.</p>
<p>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 deployment of our industry-specific offerings, delayed sales of our MainControl products in anticipation of new releases, lower than expected benefits from our alliance partner program, 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, 2003.</p>
<p># # #
MAXIMO® is a registered trademark, and MRO Software™ is a trademark, of MRO Software, Inc. Other brand names are or may be the trademarks or registered trademarks of their respective owners.</p>
<p>Local contacts:</p>
<p>Rochelle Vincent
MRO Software
Phone: + 61 2 9463 7743
Email: rochelle.vincent@mro.com</p>
<p>Erika Longworth
Max Australia
Phone: +61 2 9954 3492
Email: erika.longworth@maxaustralia.com.au</p>

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