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MKS Announces Second Quarter Fiscal 2011 Results and Increases Quarterly Dividend

Waterloo, ON – November 23, 2010: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the second quarter of fiscal year 2011 and a 14% increase to its quarterly cash dividend. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Waterloo, ON – November 23, 2010: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the second quarter of fiscal year 2011 and a 14% increase to its quarterly cash dividend. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Financial & Operational Highlights:

Q2 2011 (compared with Q2 2010)

  • Total revenue of $17.4 million compared to $14.7 million, an increase of 19% 
  • License revenue of $5.6 million compared to $3.9 million, an increase of 42% 
  • Maintenance revenue of $8.0 million compared to $7.8 million, an increase of 3% 
  • Service revenue of $3.8 million compared to $3.0 million, an increase of 29% 
  • Operating income of $3.2 million compared to $2.2 million, an increase of 45% 
  • Net income of $2.4 million, or $0.23 per share, compared to $1.6 million, or $0.16 per share, an increase of 49% 
  • Key license transactions at Denso, ITT Electronics, Magna, Mitsubishi Electric, RIM, Robert Bosch, Rolls Royce, and Volkswagen

Closing cash balance at October 31, 2010 was $21.8 million, a $3.0 million decrease from the $24.8 million balance at April 30, 2010, and up $0.9 million from the $20.9 million at July 31, 2010. During the quarter MKS paid $1.8 million in dividends.

“We were pleased to report strong second quarter results driven by excellent license performance. The outstanding quality of our global customers is testament to the strategic position that we are winning in the embedded systems market.” said Michael Harris, President and CEO. “We have steadily established MKS Integrity as the market standard for global manufacturers who recognized that software has become their most critical factor in product innovation.”

“With continued new customer wins among the largest embedded systems customers globally, we are also proving the robustness of our financial model.” said Philip C. Deck, Executive Chairman. “Our strong financial performance this quarter supported our continued confidence in our performance for the full fiscal year 2011.”

MKS also announced today that its Board of Directors has declared a quarterly cash dividend of US$0.20 per share on the Company's outstanding common shares, an increase of 14% from the previous quarter.

The cash dividend on MKS common shares will be payable on January 14, 2011 to shareholders of record at the close of business on December 31, 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 second quarter of fiscal 2011 was $17.4 million, up 19 percent from $14.7 million for the second quarter of fiscal 2010. Net income for the second quarter of fiscal 2011 increased 49 percent to $2.4 million, or $0.23 per share, compared to $1.6 million or $0.16 per share in the second quarter of fiscal 2010.

Six month revenue for fiscal 2011 increased 8 percent to $32.7 million compared with revenue of $30.4 million for the same period in fiscal 2010. Six month net income was $3.4 million, or $0.33 per share, an increase of 12 percent from the net income of $3.0 million, or $0.30 per share, for the same period in fiscal 2010.

Conference Call Details

MKS will hold a conference call November 23, 2010 at 8:30 a.m. EST to discuss its quarterly 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 #21442612.

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 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. 

 

For summarized financial information, please click here

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For further information contact: 

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

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