FRAMINGHAM, Mass.—(BUSINESS WIRE)—November 5, 2007— Moldflow Corporation (NASDAQ: MFLO) today announced results from its continuing operations for the first quarter of its 2008 fiscal year. The Company disposed of its Manufacturing Solutions business division on June 30, 2007; therefore, results from all prior periods have been reclassified to reflect the Company's continuing operations.
-- Revenue of $13.4 million was up 14% from the corresponding
quarter of fiscal 2007.
-- Total product revenue of $5.8 million represented a 13%
increase from the same period of the prior year.
-- Total services revenue of $7.6 million represented a 15%
increase from the same period of the prior year.
-- Non-GAAP operating margin grew to 11%, up from 9% in the same
period of the prior year.
-- EBITDA was $1.8 million, up 20% on a year-over-year basis.
-- Non-GAAP tax rate of 17% compared to a rate of (9%) in the
same period of the prior fiscal year, which included the
impact of a one-time benefit resulting from a revised estimate
of a tax liability.
-- Non-GAAP net income from continuing operations of $2.0 million
represented a 2% increase from the results of the
corresponding quarter of fiscal 2007.
-- Non-GAAP earnings per diluted share of $0.16 decreased $0.01
from the same period of the prior year and included the impact
of an increased number of shares used in the calculation of
EPS resulting from the improved market value of our common
-- Net income from continuing operations as reported in
accordance with GAAP was $1.5 million or $0.12 per diluted
share, and included a net charge of $482,000 for share-based
compensation expense, and compared to $1.6 million or $0.14
per diluted share, which included a net charge of $350,000 for
share based compensation expense.
-- Our operating activities from continuing operations generated
$2.2 million of cash during the first quarter, up
significantly from $1.4 million generated the same period of
the prior year.
"We are pleased with the results of our first quarter as a company
solely focused on our core CAE software business. These results are
consistent with our overall expectations for the full fiscal year,"
said Roland Thomas, Moldflow Corporation's president and CEO. "During
the quarter, we saw another strong sales performance from our Asia
Pacific region. Both our European and Asia Pacific regions also saw a
number of repeat investments from both large and small companies. We
were also pleased to see the investments in our geographical expansion
continue to provide incremental revenue."
The Company is providing full year fiscal 2008 guidance from
continuing operations below on both a GAAP and non-GAAP basis.
Non-GAAP guidance excludes estimated charges for share-based
compensation costs. Because there are significant limitations in
estimating the impact of share-based compensation costs and related
taxes, the tax benefits and estimated charges associated with
share-based issuances are unpredictable. For these reasons, the actual
impact of share-based compensation on our financial results may differ
materially from the estimated amounts included in the guidance below.
The current business outlook is based on information as of
November 5, 2007 and is current as of that day only. For our full
fiscal 2008 year we expect revenue to grow in the range of 10% to 13%
when compared to fiscal 2007. We expect EBITDA from continuing
operations to grow in the range of 13% to 20% in fiscal 2008 when
compared to fiscal 2007. We expect non-GAAP net income per diluted
share from continuing operations of approximately $0.94 to $1.00,
based upon an estimated 12.1 million diluted shares. Non-GAAP net
income per diluted share excludes charges for share-based compensation
expenses which are expected to be approximately $1.8 million, net of
related tax effects, and assumes an effective tax rate of
approximately 21%. GAAP net income per diluted share from continuing
operations for fiscal 2008 is expected to be between $0.78 and $0.84
based upon an estimated 12.1 million diluted shares. This GAAP
estimate assumes an annual effective tax rate of approximately 25%.
Use of Non-GAAP Financial Measures
The Company has provided non-GAAP net income from continuing
operations, non-GAAP net income per diluted share from continuing
operations and EBITDA as supplemental measures regarding the Company's
operating performance. Non-GAAP net income from continuing operations
and non-GAAP net income per diluted share from continuing operations
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 first quarter of
the 2008 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
Preliminary Financial Results
The preliminary unaudited condensed consolidated financial
statements for the first quarter of fiscal 2008 follow.
Moldflow will host a conference call to discuss the first quarter
of fiscal 2008 year results as well as future outlook at 11:00 a.m. US
Eastern time, Monday, November 5, 2007. The conference call dial-in
number is 877-314-4022, Conference ID #21004226. The call will be
recorded with replay (dial-in # 800-642-1687, PIN# 21004226) which
will be available until November 12, 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
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 and maximize productivity and
profitability on the manufacturing floor. Visit www.moldflow.com for
Note to editors: Moldflow is a registered trademark 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 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 risk that a weak global economy
will slow capital spending by the Company's prospective customers; the
risk that the Company may not be able to recognize the revenue derived
from orders received; the risk that the sales cycle may lengthen; the
risk that foreign currency fluctuations may adversely affect the
Company's financial results; the risk that share-based compensation
expense will continue to have a negative impact on the Company's GAAP
operating profit from continuing operations, net income from
continuing operations and earnings per share from continuing
operations calculations; the risk 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, 2007 as well as its subsequent quarterly and annual filings.