Use of Non-GAAP Financial Measures
The Company has provided non-GAAP net income, non-GAAP net income per diluted share and EBITDA as supplemental measures regarding the Company’s operating performance. Non-GAAP net income and non-GAAP net income per diluted share exclude the impact of share-based compensation expense and therefore have not been calculated in accordance with GAAP. EBITDA is defined as GAAP net income from continuing operations plus any interest expense, income taxes, depreciation, amortization and share-based compensation expense less interest earned and therefore has not been calculated in accordance with GAAP. Moldflow is presenting these measures because management uses this information in evaluating the results of the Company’s operations and for internal planning and forecasting purposes and believes that this information provides additional insight into our operating results, as well as enables comparison of these results to prior periods. These measures should not be considered an alternative to measurements required by GAAP, such as net income from continuing operations and net income per diluted share from continuing operations, and should not be considered a measure of our liquidity. In addition, these non-GAAP financial measures may not be comparable to similar measures reported by other companies. With respect to the non-GAAP financial measures for the fourth quarter, the full 2007 fiscal year and as presented in our business outlook for fiscal 2008, the GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed in this press release and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release and can be found on the Investors page of the Moldflow Web site at http://www.moldflow.com/stp/english/investors/index.htm.
Preliminary Financial Results
The preliminary unaudited condensed consolidated financial statements for the fourth quarter and full 2007 fiscal year follow.
Moldflow will host a conference call to discuss the preliminary fourth quarter and full 2007 fiscal year results as well as future outlook at 11:00 a.m. US Eastern time, Thursday, August 23, 2007. The conference call dial-in number is 877-314-4022, Conference ID #10140446. The call will be recorded with replay (dial-in # 800-642-1687, PIN# 10140446) which will be available until August 30, 2007. In addition, a live Webcast of the conference call, together with this press release and supplemental financial information, can be accessed through the Company’s Website at www.moldflow.com in the Investors section. The call, press release and supplemental information will be archived and can be accessed through the same link.
About Moldflow Corporation
Moldflow (NASDAQ: MFLO) is the leading global provider of design analysis solutions for the plastics injection molding industry. Moldflow’s products and services allow companies to address part and mold design issues at the earliest stage. Visit www.moldflow.com for more information.
Note to editors: Moldflow, Moldflow Plastics Insight and MPI are trademarks
or registered trademarks of Moldflow Corporation or its subsidiaries worldwide.
All other trademarks are properties of their respective holders.
Cautionary Statement Regarding Forward-Looking Information
Pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, the Company notes that any statements contained in this press release that are not historical facts are forward-looking statements. Such forward-looking statements include, but are not limited to, statements by Moldflow’s President and CEO, statements under Business Outlook and those regarding Moldflow's or management's intentions, hopes, beliefs, expectations, projections, plans for the future and estimates and statements regarding any potential growth and operating leverage during the 2008 fiscal year. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include the risks that a weak global economy will slow capital spending by the Company’s prospective customers; that the Company may not be able to recognize the revenue derived from orders received; that the sales cycle may lengthen; that foreign currency fluctuations may adversely affect the Company’s financial results; that share-based compensation expense will continue to have a negative impact on the Company’s GAAP operating profit, net income and earnings per share calculations; that changes in US or foreign tax legislation, or on-going tax inquiries and the on-going tax audits of the Company’s subsidiary companies, including Australia, may result in a higher level of income tax expense than that projected; as well as other risks and uncertainties which are detailed from time to time in reports filed by Moldflow with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended June 30, 2006 as well as its subsequent quarterly and annual filings. Further, there can be no assurance that the finalization of the review by the SEC of the Company’s timing of the recognition of certain revenue and related accounting will not result in adjustments to the Company’s previously issued financial statements. In addition, the finalization of the review by the SEC and its conclusions may adversely affect the Company’s ability to file required reports with the SEC on a timely basis and adversely impact the Company’s ability to meet the requirements of the Nasdaq Global Select Market for continued listing of its shares; and may adversely impact management’s conclusions on the effectiveness of its internal control over financial reporting and disclosure controls and procedures, result in claims and proceedings relating to such matters, including shareholder litigation and actions by the SEC and/or other governmental agencies resulting from any accounting adjustments or other factors.