Revenue for the fiscal year ended June 30, 2001 was $39.9 million, an increase of 46% compared to revenue of $27.4 million reported for fiscal 2000. Revenue for the fourth quarter of fiscal 2001 of $9.6 million was up 9% over the corresponding quarter of fiscal 2000.
The Company reported net income for the fiscal year 2001 of $3.51 million, or $0.35 per diluted share, compared to $3.45 million, or $0.48 per diluted share, during fiscal 2000. Net income for the 2001 fiscal year included non-cash amortization of goodwill and other acquired intangible assets resulting from the purchase of C-MOLD in April 2000 and the purchase of Branden Technologies Inc. in March 2001. Excluding these charges, pro forma net income for the year ended June 30, 2001 was $4.7 million, or $0.46 per share, an increase of 78% over pro forma net income for the prior year. Pro forma net income in fiscal 2000 excludes non-cash amortization charges, non-recurring charges related to the acquisition of C-MOLD(R), and the impact of a net $1.4 million unusual gain recorded in the third fiscal quarter on the sale of a long-term investment. Earnings for the fourth fiscal quarter were $0.01 per diluted share on net income of $134,000. Excluding the above noted non-cash charges, pro forma net income for the fourth quarter of fiscal 2001 was $512,000, or $0.05 per diluted share, compared with $1.5 million, or $0.15 per diluted share in the prior year quarter.
Software license revenue for the fourth quarter of fiscal 2001 decreased 3% to $5.3 million, compared to $5.5 million in the fourth quarter of fiscal 2000. Services revenue, including revenue from maintenance and support contracts, increased 30% to $4.3 million in the quarter, compared to $3.3 million in the corresponding quarter of fiscal 2000. On a regional basis, revenues in Asia represented 34% of Moldflow’s total revenues for the fourth fiscal quarter of 2001, while revenues in the European and Americas regions each represented 33%.
During the fourth fiscal quarter of 2001, Moldflow generated $1.9 million in cash from operations. The Company invested $200,000 in capital asset additions during the quarter. As of June 30, 2001, the Company had $45.7 million in cash and marketable securities and no long-term debt.
The Company had a total of 290 employees at the end of the fiscal year, of which 48 were sales representatives, 86 were in research and development, with the remainder employed in sales management, marketing, customer support, and general and administrative functions.
Marc Dulude, president and CEO of Moldflow noted, In this quarter, we achieved several key milestones which continue to position Moldflow as the preeminent supplier of software to the plastics industry. We completed the acquisition of Branden Technologies, a leading developer of software and hardware systems for process and production monitoring in the plastics industry in March 2001, and moved quickly in the fourth quarter to tightly integrate Branden. We provided extensive product training to our salesforce and technical support teams, and integrated management of the product development teams. These efforts resulted in the April release of EZ-Track(TM) version 1.0, the first joint product employing both Branden and Moldflow technologies. EZ-Track, which is designed to monitor all machines and equipment on the injection molding shop floor, has already begun to create excitement among customers looking for tools to capture, store, view and understand what is occurring throughout an entire plant, in real-time. We were particularly pleased to receive large orders for the EZ-Track and Shotscope(R) products from customers in Spain and Italy, as it further confirms our view that these products will be attractive to our global customer base.
Dulude continued, In addition to the Branden integration, in June we announced the addition of cavity pressure transfer control technology in our Moldflow Plastics Xpert(R) product. This new capability expands the application range for MPX(TM) by making its monitoring and control capabilities available to customers who choose this method of process control. These product releases further demonstrate our commitment to continue the rapid pace of innovation that has characterized Moldflow.
Dulude concluded, The results for this fiscal quarter and fiscal year were in line with the cautious tone we sounded and the expectations that we shared with our investors at the end of last quarter. We are pleased with our financial performance and continued market penetration this year, as evidenced by the 46% growth in year over year revenues. Although our year over year growth for the fourth quarter was lower than in the first three quarters of this year, when viewed in the context of the broad geographic economic downturn that has now been affecting technology companies and our served markets for over a year, we are satisfied with this outcome. Our customers look to Moldflow for solutions to engineering design and manufacturing problems which, left unsolved, result in higher costs, lower profits and lost opportunities.
Moldflow’s financial results reflected sales to companies across numerous lines of business, including sales to customers in the automotive, consumer goods, material supply, molding, mold making, electronics and medical industries. Orders were received during the quarter from notable customers such as Siemens Communication Devices, 3M, Hague Quality Water International, Knauf Plastics, Tetra Brik Packaging Systems S.p.a., Sanyo Energy GmbH, Ericsson Enterprise AB, ATS Automated Tooling Systems, Cascade Engineering, Plasticos Castella, and Plasticos Durex. In total, over 90 new customers were added during the quarter.
SOURCE: COMPANY PRESS RELEASE
