Home PTC Integrity Contacts Press Press Releases MKS Reports Increased Profit on Strong Licensing
Bookmark and Share

MKS Reports Increased Profit on Strong Licensing

Waterloo, ON – February 23, 2005: MKS Inc. (MKS) (TSX: MKX) today announced its financial results for the third quarter of fiscal 2005 which ended on January 31, 2005. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Waterloo, ON – February 23, 2005: MKS Inc. (MKS) (TSX: MKX) today announced its financial results for the third quarter of fiscal 2005 which ended on January 31, 2005. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

Total revenue for the third quarter of fiscal 2005 was $10.6 million, a 46 percent or $3.4 million increase from $7.2 million in the third quarter of fiscal 2004 and a 12 percent or $1.2 million increase from $9.4 million in the second quarter of fiscal 2005. Net income for the third quarter of fiscal 2005 was $0.8 million, or $0.02 per share, an improvement of $1.9 million compared to a net loss of $(1.1) million or $(0.03) per share in the third quarter of fiscal 2004 and up from net income of $0.2 million in the second quarter of fiscal 2005.

Nine month revenue for fiscal 2005 was $28.8 million, a 26 percent or $5.9 million increase from $22.9 million for the same period in fiscal 2004. Nine month net income was $1.2 million or $0.03 per share, up $3.0 million from the net loss of $(1.8) million, or ($0.04) per share, reported in the same period of fiscal 2004.

For the third quarter of fiscal 2005, software configuration management (SCM) revenues were a record $8.3 million, representing a 64 percent increase over SCM revenues of $5.1 million in the third quarter of fiscal 2004 and a 13 percent increase over SCM revenues of $7.3 million in the second quarter of fiscal 2005. The Company’s cash position increased from $4.8 million to $4.9 million during the quarter.

"In addition to continued growth and profitability, we were delighted with the high number of new beachhead wins in major corporate accounts," said Philip Deck, MKS chairman and CEO. "Our increasing ability to roll out software within these organizations is extended by our latest release of the MKS Integrity Suite 2005 which incorporates the most highly integrated requirements management capability in the industry."

"We enjoyed 108 percent growth in our SCM licensing over the third quarter of last year as our sales and services teams continued to mature," said Michael Harris, MKS chief operating officer. "In addition, we more than doubled year-over-year SCM service revenues in line with our strategy of intensive deployment activities within global enterprise accounts."

The Company once again reaffirmed its expectation that continued growth in its SCM revenue will result in profitability for the Company as a whole in fiscal 2005.

Highlights of the Quarter

  • SCM year-over-year license growth of 108 percent
  • SCM year-over-year services delivery growth of 125 percent
  • Customer wins at Abbott Labs, Autoliv Inc., Avon Products Inc., Boeing, BUPA, Citigroup Inc, Continental Teves Inc., France Telecom SA, ITT Avionics, Maersk, Magna, Northrop Grumman, Skandia Insurance, Social Security Administration, and The TJX Companies
  • 43 contracts worth greater than $50,000, vs. 26 in the same period last year
  • Announcement of MKS Integrity Suite 2005 including integrated requirements management, management dashboard, and e-signature support for regulated industries
  • Relationship with consulting and resale partner ProServ, expanding presence in the Middle East

Conference Call Details
The Company will hold a conference call at 5:00 p.m. ET after close of markets today to discuss its third quarter performance and results. Interested parties may access the call by dialing 1-888-280-8771 or 416-695-7848. A digital recording of the call will be available for one (1) week from February 24, 2005 to March 02, 2005 and may be accessed by dialing 1-888-509-0082 or 416-695-5275.

For summarized financial information, please click here.

About MKS
MKS is the preeminent provider of enterprise technology management solutions for the global 1000. MKS’s solution spans the application lifecycle from requirements management, through application development, to server deployment providing customers with greater visibility over software development activities, enhanced development productivity and improved IT controls for regulatory compliance. MKS solutions are distinguished by their ease of implementation and low total cost of ownership. Founded in 1984, MKS serves more than 10,000 customers in countries across the world. Whether through deployment of MKS’s enterprise solutions strategically on an enterprise scale, or by leveraging individual components to solve project-level challenges, our customers can use MKS’s technology to better enable higher levels of process maturity, better manage global development activity and safeguard their most critical business applications and software assets. Under its widely known MKS Toolkit brand, MKS also provides UNIX-Windows co-existence and system administration that significantly cut development and administrative costs and reduce time to market, while enabling enhanced performance. 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), +44-1483-733900 (United Kingdom) and 1-519-884-2251 (Rest of World).

Copyright © 2005 MKS Inc. MKS and design, MKS Integrity Suite and MKS Toolkit are trademarks or 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
Email dsawatzky@mks.com


 

Document Actions