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MRO Software, Inc.,Bedford, MA, announced results for the company's first quarter of fiscal year 2003 ended Dec. 31, 2002.
Total revenues for the first quarter were $43.9 million compared with $46.5 million for the first quarter of the prior year, a decrease of 6 percent. On a GAAP basis, the company reported a profit for the first quarter of fiscal 2003 of $0.4 million compared with a net loss of $1.9 million for the same quarter last year.
Pro-forma net income (see Schedule A) for the first quarter was $1.2 million, or compared with net income of $0.7 million for same quarter last year. Pro-forma net income for the first quarter of fiscal 2003 is adjusted for the amortization of other intangibles and their related tax effects. Pro-forma net income for the first quarter of fiscal 2002 is adjusted for the amortization of goodwill and other intangibles and their related tax effects.
The company reported that revenue from software license sales was $12.7 million, compared with $13.8 million in the same quarter last year, a decrease of 8 percent. Support and services revenue was $31.2 million, compared with $32.7 million in the same quarter last year, a decrease of 5 percent.
During the first quarter of fiscal 2003, the company sold more than 260 licenses into a broad variety of industries. Clients that purchased MRO Software products this quarter included: Washington Metropolitan Area Transit Authority, City of Cincinnati, State University of New York at Buffalo, U.S. Department of Energy, Visteon Corporation, Alcan Inc., Baxter Pharmaceuticals, Beaufour Ipsen Group, BP International, Alliant Energy, Halliburton Corporation, Charles River Labs, U. S. Marine Corp and the U. S. Navy.
The balance sheet for the period ended Dec. 31, 2002 contained $71.0 million in cash and marketable securities and no long-term debt. Deferred revenue increased to $27.8 million, and days sales outstanding (DSO) improved from 69 days last quarter, to 65 days this quarter.
"We're pleased that our first quarter results exceeded our original expectations and guidance," commented Chip Drapeau, president and CEO, MRO Software. "MAXIMO 5 saw growth in both adoption and win rates, and MAXIMO MainControl, our IT asset management product, saw substantial increases in the new opportunity pipeline. We continue to take action to improve our operating margins and to increase the competitive advantages of our core business. Although the sales environment continues to be challenging, our growth opportunities are stronger this year, due to our expanded product portfolio and the resulting larger target market."
"The fiscal health of the company remains very sound, providing a critical differentiator in this sales environment," said Peter Rice, CFO, MRO Software. "The balance sheet remains strong, we added $3.2 million to our cash position and continued our improvement in DSOs."
Rice continued, "The company's revenue projections for fiscal year 2003 remain consistent with prior guidance. We expect to grow total revenues to the range of $180-$190 million. Software license revenues are expected to rise sequentially each quarter during the fiscal year resulting in a forecasted range of $55-$65 million. Pro-forma earnings per share are expected to be in the range of $0.30-$0.40 for fiscal 2003. Second quarter revenues are expected to be in the range of $44-$46 million, with second quarter pro-forma earnings per share between $0.05-$0.08."