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Matrikon releases results for the second quarter
 
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April 7, 2010 - Matrikon reported financial results for the second quarter of fiscal year 2010, which ended February 28, 2010.

Matrikon president and CEO Nizar J. Somji commented on the quarter: “Our second quarter continues the strong results we saw at the beginning of this fiscal year and the gradual return to spending in some of our core industries. Our large contract wins this quarter reaffirm the additional value added by our solutions—now that they are empowered by our next generation technology. These wins are also evidence of our leadership in delivering solutions that not only facilitate collaboration but also drive performance by integrating workflow and enabling action to be taken and monitored.

“We continue to make progress in line with our strategy, with infrastructure and research and development investments made in prior quarters paying off. Our cost structure is well supported by revenue growth, contributing to improved profit margins. In a quarter that is often challenging from a results perspective, everyone at Matrikon has demonstrated their commitment and focus to delivering on the strategy. The first half of this fiscal year has formed a solid foundation on which to grow in the remainder of this fiscal year and beyond.”

Second quarter revenue was $22.76 million compared to $19.66 million in Q2-09 and $25.45 million in Q1-10. Net income in the second quarter was a record $2.85 million or $0.09 per share compared to $2.03 million or $0.07 per share in Q2-09 and $2.77 million or $0.09 per share in Q1-10.

Year-to-date (YTD) revenue grew 23% to $48.21 million compared to the first half of FY-09. YTD net income grew 17% to $5.61 million or $0.18 per share, compared to $4.78 million or $0.16 per share in the first half of FY-09.

Matrikon’s board of directors declared a quarterly dividend of $0.03 per common share for the second quarter of fiscal year 2010. This dividend is payable on April 27, 2010 to all shareholders of record on April 16, 2010. The dividend is an eligible dividend for Canadian tax purposes.

Additional Highlights:
  • We achieved record consulting revenue of $14.79 million in Q2-10. This reflects a 50% increase compared to Q2-09 and 12% compared to Q1-10, despite 10% fewer working days in our second quarter. With this growth in consulting revenue, consulting headcount increased by 4% in Q2-10 compared to Q2-09.
  • During the quarter, we won and announced a US$15.7 million contract to build a remote oil field monitoring program for a Middle East oil company based on Matrikon’s Well Performance Monitor industry application. Also during the quarter, we announced a €4.2 million contract win with Statoil to deliver Well Performance Monitor to 35 offshore assets on the Norwegian Continental Shelf. These contract wins, along with ongoing work with other global clients, are evidence of Matrikon’s market presence in intelligent oil field solutions.

  • Products revenue (comprised of software license and support revenue) declined by 19% compared to Q2-09 and by 10% compared to Q1-10. Despite this decline, OPC sales experienced growth of 2% compared to Q2-09 and increased by 30% compared to Q1-10.
  • Gross margin in Q2-10 was 55%. Compared to Q2-09, gross margin dropped 4 percentage points as a result of the reduced software license contribution to the revenue mix. Compared to Q1-10, gross margin increased by 1 percentage point as our revenue mix in Q2-10 included less equipment revenue, which generally carries a lower margin. Combined overhead expenses in Q2-10 remained steady at $9.59 million compared to $9.69 million in Q2-09 and $9.58 million in Q1-10. YTD sales and marketing expenses were up 18% compared to the first half of FY-09, as we continued to invest in sales and marketing to support larger project wins over the past 6 months.


    • About Matrikon
    Matrikon delivers industrial performance monitoring solutions that provide visibility into the global operations of oil and gas, energy, mining, power and refining companies. Matrikon products enable users to anticipate and correct problems, identify opportunities for improvement, share best practices and drive the action necessary to achieve and sustain their operational excellence objectives. Matrikon has been empowering excellence since 1988. With offices throughout North America, Australia, Europe and the Middle East and a client base that includes industry leaders in a wide range of process industries, Matrikon's reach is global. Matrikon trades on the Toronto Stock Exchange under the symbol MTK.
     
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