Home PTC Integrity Contacts Press Press Releases MKS Announces Preliminary Third Quarter Results for Fiscal 2004
Bookmark and Share

MKS Announces Preliminary Third Quarter Results for Fiscal 2004

Waterloo, ON - February 3, 2004: MKS Inc. (MKS) (TSX:MKX), today announced preliminary results for the third quarter of fiscal 2004. MKS expects to report third quarter fiscal 2004 revenues in the range of $7.1 to $7.4 million, compared to revenues of $8.5 million reported in the third quarter of fiscal 2003 but consistent with revenue generated in the second quarter of fiscal 2004. MKS expects to report operating costs in the range of $8.2 to $8.5 million for the third quarter.

Waterloo, ON - February 3, 2004: MKS Inc. (MKS) (TSX:MKX), today announced preliminary results for the third quarter of fiscal 2004. MKS expects to report third quarter fiscal 2004 revenues in the range of $7.1 to $7.4 million, compared to revenues of $8.5 million reported in the third quarter of fiscal 2003 but consistent with revenue generated in the second quarter of fiscal 2004. MKS expects to report operating costs in the range of $8.2 to $8.5 million for the third quarter.

The expected revenues for the third quarter are attributable to lower than expected SCM licensing revenue across all geographic areas as a number of significant new license transactions were delayed. Costs are expected to be in line with expectations.

"Over the past year, MKS's strategy has been to direct the majority of our sales efforts towards developing customer relationships with companies in the Global 1000 rather than the medium sized companies that have historically represented the bulk of our enterprise SCM customer base," said Philip Deck, chairman and CEO of MKS Inc. "This transition to a Global 1000 customer base and the longer sales cycle inherent in those sales have reduced our revenue growth rate.

We believe that Global 1000 companies offer much greater opportunities for long term license growth, higher margins from field operations and ultimately more lucrative and stable maintenance revenue. Moreover, Global 1000 companies place a much higher value and emphasis on the enterprise values and features around which MKS has built its product line. Consequently, MKS finds strong acceptance of our SCM products by Global 1000 customers and faces much less competition. Inherent in selling to those Global 1000 customers however is a longer sales cycle and more rigorous evaluation process than MKS experiences with smaller customers.

MKS remains firmly committed to its Global 1000 enterprise SCM strategy and is confident that, based on evidence of purchase cycle progress throughout its customer base and pipeline expansion, its strategy is maturing quickly and will yield improved results in the fourth quarter of fiscal 2004 and into fiscal 2005. Moreover, the company remains in the solid financial condition needed to complete its transition," said Deck.

MKS maintained a healthy cash balance totaling $5.7 million at January 31, 2004.

MKS expects to be profitable in the fourth quarter but given the results of the third quarter has concluded that full year profitability for fiscal 2004 is unlikely. Additional details will be provided at its earnings conference call scheduled for February 24, 2004.

MKS will report final results for the third quarter fiscal 2004 after close of market on February 24, 2004. The Company will hold a conference call at 5:00 p.m. EST on that date to discuss its third quarter performance for fiscal 2004.

About MKS
MKS Inc. (MKS) (TSX:MKX) provides award-winning enterprise software configuration management (SCM) and interoperability software solutions enabling Global 1000 companies to better manage and control the complete process of software development. The Company's family of SCM products offers advanced technology with robust workflow, version control, and impact analysis capabilities. Under its widely known MKS Toolkit brand, MKS provides UNIX-Windows co-existence, and system administration that significantly cut development and administrative costs and reduce time to market while enabling enhanced performance. Founded in 1984 with over 10,000 customers worldwide, MKS has built its brand on the foundation of advanced technology, superior quality and extraordinary customer service. More information about MKS can be found at http://www.mks.com, or by calling 1-800-265-2797 (US & Canada), +49-711-351775-0 (Germany), and +44-1483-733900 (United Kingdom).

MKS and MKS Toolkit are registered 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 the Company's current views with respect to future events and are subject to such risks and uncertainties. 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 the Company 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. The Company does not intend and does not assume any obligation to update these forward-looking statements.

Investor Contact:
Douglas Sawatzky, CFO
Phone 519-883-3252
E-mail dsawatzky@mks.com


 

Document Actions