UGS Reports Q2 2006 Revenue

PLANO, Texas, Aug. 14 /PRNewswire/ -- UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced second quarter 2006 results.

    Second quarter financial highlights include:
    - Total revenue increased to US$296.7 million, 4 percent growth over the
      same period a year earlier.
    - Software revenue increased to US$221.2 million (including license and
      maintenance revenues), or 5 percent growth as compared to the second
      quarter 2005.
    - Total revenue and software revenue increased in each geographic region
      compared to the same period in 2005.
    - cPDM software revenue grew 18 percent over the same period a year
      earlier.  (cPDM represents Teamcenter software revenue and excludes
      digital manufacturing software revenue.).
    - EBITDA (defined below) was US$69.3 million, or an 80 percent growth over
      the same period a year earlier.
    - Operating income increased to US$10.1 million and includes the impact of
      acquisition-related intangible amortization costs of US$39.1 million.
    - These amounts are not adjusted for the impact of deferred revenues
      written off in connection with acquisitions.  These write-offs had the
      effect of reducing second quarter 2006 revenues by US$0.2 million and
      2005 revenues by US$3.4 million.

"We continue our drive to sustain solid growth and improve operating income while we focus on executing our strategic plan to position the company for enhanced growth," said Tony Affuso, chairman, CEO and president of UGS. "As we complete the reorganization of our sales force to focus on verticals and mid-market channels, we are currently adding needed sales capacity. We have seen early progress in our mid-market channel strategy marked by strong double digit software growth in the quarter. During the second quarter we also continued to receive third-party accolades for our software and service through such prestigious designations as being named a Caterpillar Strategic Supplier, the Honda Engineering Supplier of the Year Award, Ford's Q1 Certification, GM's Supplier of the Year Award and Frost & Sullivan's PLM Company of the Year Award."

    Business Highlights

    - UGS mid-market approach continued to gain steam through UGS Velocity
      Series(TM) portfolio wins as well as increased channel expansion.
      Second quarter indirect channel revenue increased by 30 percent, and the
      company signed more than 50 new partners in the first half of the year.
      (see separate release)
    - Kaltenbach Maschinenfabrik GmbH & Co. KG, a global supplier of machine
      tools, has selected Solid Edge(R) 3D CAD software to develop its range
      of circular and band saw machines as well as sectional steel processing
      systems.  Following evaluation of several competing products, Kaltenbach
      selected Solid Edge for its flexibility, user-friendly design and
      support.  (see separate release)
    - Radkersburger Metallwarenfabrik, an Austrian-based die manufacturer, has
      selected NX CAM Express(R) software for manufacturing its deep drawing
      dies.  (see separate release)
    - UGS today announced an original equipment manufacturer (OEM) agreement
      with China's Jilin University (JLU) to integrate one-step formability
      analysis technology developed by JLU into NX(TM) software, UGS' digital
      product development solution. The technology, developed by JLU's
      Institute of Auto-body and Die Engineering (IADE), helps improve design
      and manufacturing processes and is expected to be available in NX
      commercially in the third quarter of 2006.  (see separate release)

      The company expects to realize revenue from the contracts highlighted
      above over multiple quarters.

UGS will host its second quarter 2006 earnings call with securities analysts live on the Internet at 10:30 a.m. Central time, Monday, August 14, 2006. Presentation slides will be posted on at 8:30 a.m. Central time. See below for webcast/teleconference access information.

    Note:  Pop-up blockers must be disabled.
    To join:
    - Go to the URL listed above
    - Select Join an Event from the Events tab
    - Enter all requested registration information and follow instructions to

    NUMBER: +1-517-268-4880


    Audience members can join the event directly at:


To access the Net replays of this call, go to:

The replay will be available for 30 days, ending Sept. 13, 2006.

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 46,000 customers worldwide. Headquartered in Plano, Texas, UGS' vision is to enable a world where organizations and their partners collaborate through global innovation networks to deliver world-class products and services while leveraging UGS' open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation. For more information on UGS products and services, visit

Note: UGS, JT, NX, Solid Edge, Teamcenter, Tecnomatix, Velocity Series and Transforming the process of innovation are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.

The statements in this news release that are not historical statements, including statements regarding our business, results of operations expected financial performance and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to developments in the PLM industry, loss or downsizing of customers, competition, failure to innovate, international operations and exchange rate fluctuations, terrorist activities, acquisitions, changes in pricing models, intellectual property and losses of key employees. UGS has included a discussion of these and other pertinent risk factors in its annual report on Form 10-K most recently filed with the SEC. UGS disclaims any intention or obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.

    Doug Barnett - Financial Analysts
Email Contact

    Mendi Paschal - Media
Email Contact

                                (in thousands)

                                                   Three months   Three months
                                                                                                  ended                    ended
                                                                                                          June  30,              June  30,
                                                                                                              2006                      2005
            License                                                                                $86,017                $81,777
            Maintenance                                                                        135,142                128,301
            Services  and  other                                                            75,500                  74,932
                Total  revenue                                                                296,659                285,010
        Cost  of  revenue:
            License                                                                                    2,175                    5,944
            Maintenance                                                                          15,695                  14,495
            Services  and  other                                                            57,167                  66,701
            Amortization  of  capitalized  software  and
              acquired  intangible  assets                                          37,713                  31,038
                Total  cost  of  revenue                                                112,750                118,178
        Gross  profit                                                                          183,909                166,832
        Operating  expenses:
            Selling,  general  and  administrative                        117,850                110,410
            Research  and  development                                                47,388                  38,659
            In-process  research  and  development                                    -                    4,100
            Restructuring                                                                                -                    1,774
            Amortization  of  other  intangible  assets                    8,547                    8,739
                Total  operating  expenses                                          173,785                163,682
                Operating  income                                                            10,124                    3,150
        Interest  expense  and  amortization  of  deferred
          financing  fees                                                                    (26,520)              (25,216)
        Other  income  (expense),  net                                                7,703                  (8,583)
                Loss  before  income  taxes                                            (8,693)              (30,649)
        Benefit  for  income  taxes                                                    (2,274)                (8,625)
                Net  loss                                                                          $(6,419)            $(22,024)

                                                                (in  thousands)

                                                                                                      Six  months          Six  months
                                                                                                          ended                    ended
                                                                                                        June  30,              June  30,
                                                                                                            2006                      2005
            License                                                                              $165,527              $154,896
            Maintenance                                                                        260,831                239,908
            Services  and  other                                                          144,095                142,771
                Total  revenue                                                                570,453                537,575
        Cost  of  revenue:
            License                                                                                    6,099                  10,400
            Maintenance                                                                          30,800                  27,858
            Services  and  other                                                          113,105                122,697
            Amortization  of  capitalized  software  and
              acquired  intangible  assets                                          74,759                  57,224
                Total  cost  of  revenue                                                224,673                218,179
        Gross  profit                                                                          345,780                319,396
        Operating  expenses:
            Selling,  general  and  administrative                        225,661                205,579
            Research  and  development                                                98,613                  74,640
            In-process  research  and  development                                    -                    4,100
            Restructuring                                                                          (535)                  1,774
            Amortization  of  other  intangible  assets                  17,366                  16,309
                Total  operating  expenses                                          341,105                302,402
                Operating  income                                                              4,675                  16,994
        Interest  expense  and  amortization  of  deferred
          financing  fees                                                                    (52,967)              (46,379)
        Other  income  (expense),  net                                                9,937                (13,407)
                Loss  before  income  taxes                                          (38,355)              (42,792)
        Benefit  for  income  taxes                                                  (12,782)              (12,599)
                Net  loss                                                                        $(25,573)            $(30,193)

                                          (in  thousands,  except  share  amounts)

                                                                                                          June  30,          December  31,
        Assets:                                                                                        2006                      2005
        Current  assets
            Cash  and  cash  equivalents                                            $61,472                $61,532
            Accounts  receivable,  net                                              258,645                251,763
            Prepaids  and  other                                                            29,206                  22,389
            Deferred  income  taxes                                                      17,351                  26,471
                Total  current  assets                                                  366,674                362,155

        Property  and  equipment,  net                                              32,031                  36,645
        Goodwill                                                                              1,416,422            1,393,472
        Capitalized  and  acquired  software,  net                      434,919                464,994
        Customer  accounts,  net                                                      190,095                203,064
        Other  intangible  assets,  net                                          124,032                135,265
        Other  assets                                                                            36,910                  39,623
                    Total  assets                                                        $2,601,083          $2,635,218

        Liabilities  and  Stockholder's  Equity:
        Current  liabilities
            Accounts  payable  and  accrued  liabilities            $146,489              $159,976
            Deferred  revenue                                                              173,827                133,027
            Income  taxes  payable                                                          9,245                  11,895
            Current  portion  of  long-term  debt                                6,500                            -
                Total  current  liabilities                                        336,061                304,898

        Other  long-term  liabilities                                              63,770                  48,511
        Deferred  income  taxes                                                        107,706                147,440
        Long-term  debt                                                                  1,180,970            1,212,046

        Stockholder's  equity
            Common  stock,  $  .01  par  value,  3,000  shares
              authorized;  100  issued  and  outstanding
              at  June  30,  2006  and  December  31,  2005                            -                            -
            Additional  paid-in  capital                                      1,011,626            1,005,991
            Retained  deficit                                                              (88,775)              (63,202)
            Accumulated  other  comprehensive  loss,
              net  of  tax                                                                        (10,275)              (20,466)
                Total  stockholder's  equity                                      912,576                922,323
                    Total  liabilities  and  stockholder's
                      equity                                                                  $2,601,083          $2,635,218


1 | 2  Next Page »


Review Article Be the first to review this article

IMTS 2018 Register Now>>

Featured Video
Mid-Level Mechanical Engineer for Kiewit at lenexa, Kansas
Mechanical Engineer for Allen & Shariff Corporation at Pittsburgh, Pennsylvania
Upcoming Events
29th Design Engineering & Manufacturing Solutions Expo (DMS) at Tokyo Big Sight 3-11-1 Ariake, Koto-ku Tokyo Japan - Jun 20 - 22, 2018
ACMEE 2018 at Chennai Trade Centre Mount Poonamallee Road, Nandambakkam Chennai India - Jun 21 - 25, 2018
Inside 3D Printing Seoul 2018 at Korea International Exhibition Center (KINTEX), Hall 5 408 Hallyuworld-ro, Ilsanseo-gu, Goyang-si, Gyeonggi-do Goyang Korea (South) - Jun 27 - 29, 2018
Kenesto: 30 day trial

Internet Business Systems © 2018 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise