Home PTC Integrity Contacts Press Press Releases MKS Announces Fourth Quarter and Fiscal 2010 Results and Increases Quarterly Dividend
Bookmark and Share

MKS Announces Fourth Quarter and Fiscal 2010 Results and Increases Quarterly Dividend

Waterloo, ON – June 8, 2010: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the fourth quarter and fiscal year 2010 and a 17% increase to its quarterly cash dividend. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Waterloo, ON – June 8, 2010: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the fourth quarter and fiscal year 2010 and a 17% increase to its quarterly cash dividend. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Financial & Operational Highlights: 

Fiscal 2010 (compared with fiscal 2009) 

        • Total revenue of $62.9 million compared to $58.4 million, an increase of 8% 
        • License revenue of $21.2 million compared to $20.3 million, an increase of 5% 
        • Maintenance revenue of $30.3 million compared to $28.0 million, an increase of 8% 
        • Service revenue of $11.4 million compared to $10.2 million, an increase of 12% 
        • Operating income of $8.6 million compared to $4.2 million, an increase of 108% 
        • Net income of $12.6 million, or $1.25 per share, compared to $4.3 million, or $0.43 per share, an increase of 194%.

Q4 2010 (compared with Q4 2009) 

        • Total revenue of $17.2 million compared to $13.6 million, an increase of 27% 
        • License revenue of $6.7 million compared to $4.0 million, an increase of 68% 
        • Maintenance revenue of $7.3 million compared to $6.9 million, an increase of 6% 
        • Service revenue of $3.2 million compared to $2.7 million, an increase of 18% 
        • Operating income of $2.4 million compared to $0.6 million, a 280% increase 
        • Net income of $8.5 million, or $0.83 per share, compared to $2.0 million, or $0.20 per share, an increase of 326%.

Closing cash balance at April 30, 2010 was $24.8 million, a $7.7 million increase from the $17.1 million balance at April 30, 2009. During the year MKS paid $5.6 million in dividends, $1.5 million in the fourth quarter.

“We are pleased to report strong results led by rebounding sales of MKS Integrity” said Michael Harris, President and CEO. “As the recovery in our product engineering focused customer base continues, we have seen consequent improvements in capital budgets. The recognition within the market of the value of a single engineering platform to manage software complexity continues to increase. With these conditions in mind, we are adding further to the team to take advantage of this steadily improving opportunity.”

“Our fourth quarter results cap a watershed year for MKS, emerging from the economic downturn more focused, more capable and more profitable than ever before” said Philip C. Deck, Executive Chairman. “As we continue to focus on the key embedded systems opportunities where we have the greatest competitive advantage, our leadership position and our visibility in the market continue to increase.”

MKS also announced today that its Board of Directors has declared a quarterly cash dividend of US$0.175 per share on the Company's outstanding common shares, an increase of US$0.025, or 17% from the prior dividend rate of US$0.15 per share. The cash dividend on MKS common shares will be payable on July 15, 2010 to shareholders of record at the close of business on June 30, 2010. The dividend is designated as an eligible dividend for the purposes of section 89 of the Income Tax Act (Canada).

 

Financial Review
Total revenue for the fourth quarter of fiscal 2010 was $17.2 million, up 27 percent from $13.6 million for the fourth quarter of fiscal 2009. Net income for the fourth quarter of fiscal 2010 increased 326 percent to $8.5 million, or $0.83 per share, compared to $2.0 million or $0.20 per share in the fourth quarter of fiscal 2009.

Twelve month revenue for fiscal 2010 increased 8 percent to $62.9 million compared with revenue of $58.4 million for the same period in fiscal 2009. Twelve month net income was $12.6 million, or $1.25 per share, an increase of 194 percent from the net income of $4.3 million, or $0.43 per share, for the same period in fiscal 2009.

 

Conference Call Details
MKS will hold a conference call June 8, 2010 at 4:00 p.m. EDT to discuss its performance. Interested parties may access the call by dialing 800-215-1640 or 1-416-620-2418. A digital recording of the call will be available for seven (7) days following the call and may be accessed by dialing 800-558-5253 or 416-626-4100 and by entering reservation #21442610.

 

For summarized financial information, please click here.

 

About MKS
MKS Inc., the global application lifecycle management (ALM) technology leader, enables software engineering and IT organizations to seamlessly manage their worldwide software development activities. With its flagship product, MKS Integrity, MKS offers support for all software development activities through a single enterprise application, resulting in better global collaboration and higher productivity. MKS supports customers worldwide with offices across North America, Europe and Asia. For more information about MKS, visit our Web site at http://www.mks.com.

 

Copyright © 2010 MKS Inc. MKS and MKS Integrity are trademarks of MKS Inc. All other trademarks mentioned in this release are the property of their respective owners.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect MKS's current views with respect to future events and are subject to such risks and uncertainties. Although MKS believes the expectations represented by such forward looking statements are reasonable, there can be no assurance that those expectations will prove to be correct. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by MKS with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. MKS does not intend and does not assume any obligation to update these forward-looking statements.

 

-30-

 

For further information contact: 

Douglas Sawatzky, Chief Financial Officer
MKS Inc.
Phone: 519-883-3252
Email: dsawatzky@mks.com

Document Actions