MRO Software reports fourth-quarter results

Total revenues for the fourth quarter were $46.0 million compared with $46.1 million for the fourth quarter last year. Revenues for the fiscal year ended Sept. 30 were $176.9 million, compared with $171.9 million for the prior year, an increase of 3%.

On a GAAP basis, the company reported net income for the fourth quarter of $2.6 million compared with a net loss of $2.0 million for the same quarter last year. On a GAAP basis for the fiscal year ended Sept. 30, the company reported net income of $4.9 million compared with a net loss of $10.6 million for the prior year.

For the fourth quarter, revenues from software license sales were $14.2 million, compared with $15.0 million for the same quarter last year, a decrease of 5%. Support and services revenues were $31.8 million for the fourth quarter, compared with $31.0 million for the same quarter last year, an increase of 3%.

For fiscal year ended Sept. 30, software revenues were $49.9 million compared with $49.0 million for the prior year, an increase of 2%. Support and services revenues for the fiscal year ended Sept. 30, were $127.0 million compared with $122.9 million for the prior year, an increase of 3%.

During the fourth quarter, the company sold more than 230 new licenses into a broad range of industries. Customers that purchased MRO Software solutions during the quarter included: Alcan, Aventis Pharmaceuticals, Cornell University, Daimler Chrysler AG, Gillette, HP, Lockheed Martin, Nippon Oil Corporation, Penn State University, Port of Seattle, Sara Lee Corporation, State Street Bank, Siemens, U.S. Coast Guard, U.S. Customs, U.S. Department of Energy, U.S. National Parks Service, and the U.S. Navy.

The balance sheet as of Sept. 30 contained $94.6 million in cash and marketable securities and no long-term debt. This compares with $67.8 million in cash and marketable securities as of September 30, 2002, and represents a 40% increase year-over-year. For the fourth quarter, deferred revenue was $29.9 million, and days sales outstanding (DSO) improved to 57 days from 64 days in the prior quarter.

''During this fiscal year we've improved every important metric with increases in revenue, software sales, earnings and cash,'' said Chip Drapeau, president and CEO, MRO Software. ''This year's results were driven by the increased adoption of MAXIMO's Web-architecture, increased sales of our IT Asset Management solution and a continuation of our high customer retention rates delivered by our support and services organizations. Based on the continuing trends in MAXIMOﾮ and MAXIMO MainControlﾮ sales, our focus on vertical industry solutions, and the Company's solid financial fundamentals, I believe we are well-positioned for the future.''

''I'm pleased with the continued improvement of the Company's financial metrics,'' said Peter Rice, executive vice president and CFO, MRO Software. ''Our focus on profitability, improved operating margins and cash generation is reflected in the strong results we reported today.''

Rice continued, ''For fiscal year 2004, the Company expects total revenues will grow by approximately 5% above fiscal 2003 results. We believe that our operating margins will continue to increase and that will result in improved earnings that are expected to be in the range of $0.30-$0.40 per share on a GAAP basis and $0.40-$0.50 per share on a pro forma basis. As consistent with our prior performance, the Company expects a majority of the anticipated revenue growth to occur in the second half of the fiscal year. Specifically, in the first quarter of fiscal 2004 we expect revenues to be in the range of $43 to $45 million, GAAP earnings to be in the range of $0.03 to $0.05 per share, and pro forma earnings to be in the range of $0.05 to $0.07 per share.''