Edmonton, AB - July 12, 2007 - Matrikon Inc. reported financial results for the third quarter of fiscal year 2007, which ended May 31, 2007. Matrikon president & CEO Nizar J.
Somji commented on the quarter: "We were able to achieve $19.01 million in revenue, which is one of our highest quarterly revenues to date." "Our opportunities remain strong. However, it is clear that over the past two years our costs have escalated and that the revenue growth these costs were expected to bring did not keep pace.
Therefore, it is time for us to rationalize and refocus our business to ensure that our key people are in the best position to help grow the business." "I believe we are taking the right steps to transition the company and put Matrikon on solid footing for fiscal year 2008. We appreciate the ongoing support of our shareholders as we go through this process."
Third quarter revenue was $19.01 million compared to $17.29 million in the third quarter of 2006.
Net loss in the third quarter was $2.09 million, or $0.07 per share, compared to net income of $0.93 million, or $0.03 per share in the comparable period of fiscal year 2006.
Third quarter net income was decreased by $1.09 million or $0.04 per share net of tax for foreign currency translation losses versus an increase to net income of $0.32 million or $0.01 per share net of tax in Q3-2006.
Net income was also reduced by $0.98 million or $0.03 per share for one-time severance costs.Year-to-date revenue was $55.06 million compared to $54.53 million in 2006.
Year-to-date net income was $0.03 million, or $0.00 per share, compared to $3.64 million, or $0.12 per share in the comparable period of fiscal year 2006.
Year-to-date net income was reduced by $0.29 million or $0.01 per share net of tax for foreign currency translation losses versus a decrease to net income of $0.55 million or $0.02 per share net of tax in the first nine months of fiscal 2006.
Quarter Highlights:
- Matrikon announced that a major Middle East gas producer selected its alarm management solution, valued at USD$1.2 million, to provide visibility to alarm systems and enable root-cause analysis and predictive alarming.
- Matrikon began the second phase of a multi-site production and dispatch system for BHP Billiton Mitsubishi Alliance, which includes standardization on Matrikon's Downtime Reporter (formerly called ProcessMORe).
- Matrikon's fourth annual users conference, Matrikon Summit, was held in Chicago in May.
- Matrikon introduced the first end-to-end production management solution for oil sands developers, which tracks all product volumes as they move through the hydrocarbon supply chain to enable superior production intelligence and a fully auditable, seamless reconciliation across the process.
- Matrikon welcomed Top Control (high-end consulting services) & Everest Automation (distribution channel) to its Reseller Partner Program.
- On June 6, 2007, Nizar J.
Attendees represented over 100 companies from 20 countries.
Matrikon's Production Management solution is deployed at four Alberta oil sands producers.
Top Control & Everest Automation will represent Matrikon exclusively in Quebec.
Somji became president & CEO as well as interim Chief Financial Officer when Amin Rawji resigned from the company.
Nizar founded Matrikon in 1988 and was chief executive officer until December 2005 at which time he retired to become Chairman of Matrikon's Board of Directors.
MD&A and Financial Statements
The complete Management's Discussion and Analysis and Financial Statements for the current quarter can be found on Matrikon's website at http://www.matrikon.com/corporate/investors/financial/q-reports.aspx or by contacting Nicole Sayler at 1-877-628-7456 extension 4010.
Conference Call Friday, July 13 at 8:30 am Eastern Matrikon President, CEO and interim CFO Nizar J.
Somji will hold a conference call to discuss third quarter results on Friday, July 13 at 8:30 am Eastern time (6:30 am Mountain time).
To participate live, call 416-644-3415 in the Toronto area and 1-800-733-7560 for all other areas.
A replay will be available until midnight on Friday, July 20, 2007.
To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21238862 followed by the pound sign.The conference call will also be webcast and podcast at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1914660