FRAMINGHAM, Mass.—(BUSINESS WIRE)—Aug. 11, 2005— Moldflow Corporation (NASDAQ: MFLO) today announced the results for its fourth quarter and fiscal year ended June 30, 2005, which include:
-- Full fiscal year 2005 revenue of $64.4 million, an increase of
32% from revenue of $48.7 million in fiscal 2004.
-- Net income for full fiscal year 2005 of $6.8 million, or $0.58
per diluted share, up from $2.6 million, or $0.24 per diluted
share in fiscal 2004, representing increases of 157% and 142%,
-- Fourth quarter revenue of $18.3 million and net income of $1.4
million, or $0.12 per diluted share, representing 20%
increases in both revenue and earnings, respectively, from the
corresponding quarter of fiscal 2004.
Roland Thomas, Moldflow's president and CEO said, "I am pleased to
report our fiscal 2005 results in which we saw strong operating
performance as well as significant year-over-year increases in both
revenue and earnings per share. We delivered industry leading growth
in our Design Analysis business unit, as well as substantial growth
over a transitional year for our Manufacturing Solutions business
unit. We continued our forward progress toward achievement of the
strategic goals we had defined for our business, which include the
worldwide commercialization of our hot runner process control
products, penetration of the design analysis mid market, increased
investments in Asia, the expansion of our sales network, and
maintaining a balance between revenue growth and earnings growth."
Full Fiscal Year 2005 Highlights:
-- Executed first full year with two strategic business units.
-- Established strategic marketing relationship with SolidWorks
to bring Moldflow analysis capabilities to their worldwide
-- Released Moldflow Plastics Insight 5.0.
-- Announced expanded structural CAE interfaces for ANSYS and
-- Established manufacturing operations with Yudo, Ltd. in China
for hot runner process controllers.
-- Expanded our Manufacturing Solutions sales network throughout
the Americas, Europe and Asia Pacific with the addition of 13
-- Awarded important patents for Dual Domain(TM) and Mold Mounted
Hot Runner Process Control technologies.
-- Held first International User Group Conference in Tokyo,
In discussing the fourth quarter of 2005, Mr. Thomas commented,
"During the fourth quarter, we saw year-over-year revenue growth
across all regions we serve including, for the third consecutive
quarter, the Americas. It is worthwhile to note that this strong
growth is fully comparable to the fourth quarter of fiscal 2004 as
American MSI was acquired in January 2004. While we noted strong sales
activity in each of our business units during the quarter, we also saw
increased professional fees related to Sarbanes-Oxley Section 404
compliance and audit. In spite of this expense, which was heaviest in
the fourth quarter, we still experienced a more than two-fold increase
in profitability in fiscal 2005 as compared to fiscal 2004."
Thomas continued, "Over the course of the fiscal year, our Design
Analysis business unit produced 25% year-over-year overall growth with
36% year-over-year product growth. These industry leading growth rates
clearly reflect our position in the market as the pre-eminent supplier
of advanced CAE solutions to the injection molding plastics market.
Over the fourth quarter, this business unit produced double digit
revenue growth with particular strength in the Asia Pacific region. In
fact, during the fourth quarter our Japanese sales team sold its
1,000th seat of our flagship MPI product in Japan. This milestone
clearly demonstrates that the implementation of analysis into the
earliest stages of the design to manufacture process is a worldwide
imperative and Moldflow is the preferred technology supplier to the
"In our Manufacturing Solutions business unit, over fiscal 2005,
the first full year of the combined American MSI and Moldflow
businesses, we achieved $17.2 million in revenue. In the twelve-months
prior to the acquisition of American MSI, these separate businesses
generated approximately $13.8 million of revenue. This 25% increase
shows solid progress and validates our underlying analysis of the
business combination. I am also pleased to report that during the
fourth quarter, the Manufacturing Solutions business unit contributed
a positive net operating margin, which represents the achievement of
one of our fiscal 2005 goals. Over the quarter, we noted increased
interest in both traditional shop floor and Altanium(R) hot runner
process control products, as well as a growing pipeline of deals. We
also took further steps to extend our sales and distribution reach via
an extension to our agreement with Yudo Ltd. allowing them to
manufacture our Altanium products for sale in China. This allows us to
meet the needs of the rapidly expanding Asian manufacturing market and
represents yet another step towards our goal of driving more of our
revenue through indirect channels," said Thomas.
Fourth Quarter Highlights
-- Total revenue of $18.3 million increased 20% over the same
period in the prior year and 15% when compared to the
preceding quarter. Changes in foreign currency exchange rates
contributed 2% and (3%) to those totals, respectively.
-- Total product revenue of $11.3 million increased 25% over the
same period of the prior year and 19% when compared to the
preceding quarter. Changes in foreign currency exchange rates
contributed 1% and (3%) to those totals, respectively.
-- Services revenue, primarily comprised of revenue from annual
maintenance and support contracts, was $7.0 million, an
increase of 13% over the same period of the prior year and 10%
when compared to the preceding quarter. Changes in foreign
currency exchange rates contributed 4% and (2%) to those
-- Revenue from the Design Analysis Solutions segment totaled
$12.7 million and represented 70% of total revenue.
-- Revenue from the Manufacturing Solutions segment totaled $5.5
million, contributing 30% of total revenue.
-- Regionally, revenue in the Americas represented 38% of total
revenue, while revenue in the Asia/Pacific and European
regions represented 33% and 29% of total revenue,
respectively, with approximately 78 new customers added during
As of June 30, 2005, the Company had $60.2 million in cash and
marketable securities and no long-term debt. Cash flow from operations
for the fourth quarter of fiscal 2005 was $1.3 million. For the full
fiscal 2005 year, operations generated $6.3 million of cash.
Mr. Thomas noted, "Moldflow took many significant steps in fiscal
2005 towards the achievement of our strategic product vision and
longer-term stated financial goals. As we look forward to fiscal 2006,
we expect continued revenue growth driven by the spending in our end
user markets and our expansion into new markets. We intend to focus
our products and services to meet the ever changing demands of our
diverse customer base. At the same time, we will maintain a focus on
continued profitable growth and increased shareholder value."
The current business outlook is based on information as of August
11, 2005 and is current as of that day only. This outlook does not
include the expenses associated with equity-based compensation.
Beginning with fiscal 2006, the Company will begin recording expense
for equity-based compensation as required by the SEC and FASB rules.