MKS Announces Third Quarter Fiscal 2011 Results
Waterloo, ON—February 23, 2011: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the third quarter of fiscal year 2011. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.
Waterloo, ON—February 23, 2011: MKS Inc. (MKS) (TSX: MKX) the global application lifecycle management (ALM) technology leader, today announced its financial results for the third quarter of fiscal year 2011. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles1.
Financial & Operational Highlights:
Q3 2011 (compared with Q3 2010)
- Total revenue of $18.0 million compared to $15.3 million, an increase of 17%
- License revenue of $6.2 million compared to $5.0 million, an increase of 25%
- Maintenance revenue of $8.3 million compared to $7.8 million, an increase of 7%
- Service revenue of $3.5 million compared to $2.6 million, an increase of 35%
- Operating income of $1.7 million was unchanged
- Net income of $2.0 million, or $0.20 per share, compared to $1.1 million, or $0.11 per share, an increase of 83%
- Key license transactions at Biotronik, Ciena, Daimler, Deutsche Telekom, IDEXX Laboratories Inc., Mitsubishi Fuso Truck, Mylan, Nokia, ST Electronics, Stratec Biomedical Systems AG, TomTom and Varian Medical Systems
Closing cash balance at January 31, 2011 was $23.7 million, a $1.1 million decrease from the $24.8 million balance at April 30, 2010, and up $1.9 million from the $21.8 million at October 31, 2010. During the quarter MKS paid $2.1 million in dividends.
“We continued to make significant progress in signing new embedded systems customers, particularly in the automotive sector. These new customer wins are evidence of the effectiveness of the investments we have been making throughout the year” said Michael Harris, President and CEO. “We believe that these new names position us well for growth in the quarters ahead.”
“We were pleased to see another quarter of growth driven by licensing activity” said Philip C. Deck, Executive Chairman. “While the implementation of our investment strategy in sales and engineering held back profit growth this quarter, we have now largely completed the majority of the plan. We continue to be confident that fiscal 2011 results will show significant growth in revenue and profits driven by licensing.”
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.
The cash dividend on MKS common shares will be payable on April 14, 2011 to shareholders of record at the close of business on March 31, 2011. The dividend is designated as an eligible dividend for the purposes of section 89 of the Income Tax Act (Canada).
Total revenue for the third quarter of fiscal 2011 was $18.0 million, up 17 percent from $15.3 million for the third quarter of fiscal 2010. Net income for the third quarter of fiscal 2011 increased 83 percent to $2.0 million, or $0.20 per share, compared to $1.1 million or $0.11 per share in the third quarter of fiscal 2010.
Nine month revenue for fiscal 2011 increased 11 percent to $50.7 million compared with revenue of $45.7 million for the same period in fiscal 2010. Nine month net income was $5.4 million, or $0.52 per share, an increase of 31 percent from the net income of $4.1 million, or $0.41 per share, for the same period in fiscal 2010.
Conference Call Details
MKS will hold a conference call on February 23, 2011 at 8:30 a.m. EST to discuss its quarterly performance. Interested parties may access the call by dialing 1-800-215-1640 or 1-416-620-2418. A digital recording of the call will be available for seven days following the call and may be accessed by dialing 1-800-558-5253 or 416-626-4100 and by entering reservation #21485193.
MKS enables organizations to reduce the overwhelming complexity of developing software intensive products thereby removing barriers to rapid innovation.
MKS Integrity manages all systems and software development processes and connects all engineering artifacts, including requirements, models, code and test, ensuring comprehensive lifecycle traceability. MKS Integrity's open architecture integrates disparate tools into a streamlined engineering process, allowing orchestration of engineering change and collaboration across the technology supply chain. With MKS Integrity, engineering teams improve productivity and quality, streamline compliance and gain complete product visibility, which ultimately drives more innovative products into the market.
With offices worldwide, MKS supports customers across industries including, Automotive, Aerospace & Defense, High Tech Electronics and Medical Devices. For more information about MKS and MKS Integrity, visit our web site at http://www.mks.com.
- Under Canadian GAAP, operating income was $1.8 million in Q3 2011, unchanged from Q3 2010. The difference in Canadian GAAP operating income compared to US GAAP operating income is due to a classification difference of Investment Tax Credits (ITCs). Under Canadian GAAP, ITCs are accounted for as a reduction of operating expenses. Under US GAAP, ITCs are accounted for as a reduction of the current tax provision. Under Canadian GAAP, net income was $4.6 million for the nine months ended January 31, 2010 compared to net income under US GAAP of $4.1 million for the same period. This difference is due to a foreign exchange gain under Canadian GAAP which was accounted for as an equity transaction under US GAAP. All other figures disclosed under US GAAP are the same under Canadian GAAP.
Copyright © 2011 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.
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For further information contact:
Chief Financial Officer