Edmonton, AB –July 6, 2004— Matrikon Inc. (TSX: MTK), a leading industrial IT solutions provider, today reported consolidated financial results for the third quarter of fiscal year 2004, which ended May 31, 2004.
Third quarter revenue increased 9% to $13.37 million compared to the third quarter of 2003 ($12.28 million) and 32% over the previous quarter ($10.15 million).
Year-to-date revenue was $37.83 million compared to $36.56 million in the comparable period of 2003.
Net income for the third quarter was $0.36 million, or $0.01 per share, compared to net income of $0.38 million, or $0.02 per share in the comparable period of 2003.
Year-to-date net income was $1.13 million compared to $1.78 million in the first nine months last year." We are very pleased with the improvement in our operating results for the third quarter," stated Nizar J. Somji, President and CEO of Matrikon.
"We have implemented some positive changes to allow us to operate more efficiently and better track and assess projects in real-time. The sales pipeline continues to grow and we are excited about the opportunities generated through our first annual users conference."
Outlook
Based on third quarter results, coupled with the acquisition of PI Automation (now called Matrikon Europe) and record sales in June, management maintains previous estimates for revenue and income growth for the year in the range of 0% to 10%.
This equates to fiscal year revenue in the range of $48.88 to $53.77 million and net income in the range of $2.63 to $2.89 million.
Highlights:
On May 18, 2004, Matrikon completed the acquisition of PI Automation, a turnkey supplier of web-based plant performance solutions based in Scotland. This acquisition provides a European presence, which has been a key component of Matrikon's global growth strategy. The company had been a Matrikon partner for two years and as a result of the existing synergies between the companies, Matrikon Europe has already achieved traction and increased the level of business with a client that had been common to both companies pre-acquisition. Matrikon hosted its first annual Users Group event, MVP 2004, in early May. Clients and partners from across North America, Europe, Australia, Asia, the Middle East and South America were in attendance.
MVP was successful in introducing existing clients to the full range of products and services Matrikon offers, identifying additional business opportunities that exist with these clients and in moving some opportunities to the corporate level. Employee utilization improved in the third quarter to 72% from 65% in the second quarter. It is expected to continue to improve in the fourth quarter.
MD&A and Financial Statements
The complete Management’s Discussion and Analysis and Financial Statements can be found on Matrikon’s website at www.matrikon.com/investors or by contacting Nicole Sayler at 1-877-628-7456 extension 4010