Revenue grows 16% year-over-year, return to profitability with EPS of $0.03
Herzlia, Israel - April 28, 2004 - Tecnomatix Technologies Ltd. (NASDAQ-TCNO), the driving force in Manufacturing Process Management (MPM), today announced its financial results for the first quarter ended March 31, 2004. Revenues for the first quarter of 2004 were $23.9 million, compared to $20.6 million for the first quarter of 2003, an increase of 16%.
Operating income for the first quarter of 2004 was $0.5 million, compared to an operating loss of $1.6 million for the first quarter of 2003.
Net income for the first quarter of 2004 was $0.3 million or $0.03 per diluted share, compared to a net loss of $1.4 million or $(0.13) per diluted share for the first quarter of 2003.At March 31, 2004, the Company had a $33.4 million balance of cash and cash equivalents, short-term investments and long-term investments.
Jaron Lotan, president and chief executive officer of Tecnomatix Technologies Ltd., said, "I am very pleased to announce that we achieved our strategic and financial goals for first quarter 2004. This is the second sequential quarter that we are reporting year-over-year growth in revenues, and we are reporting year-over-year growth in operating profitability and net profits. In addition, this is the sixth quarter in a row that we are reporting a positive cash flow from operating activities.
"During the quarter, we enjoyed growth across all territories, particularly in the U.S., where we achieved 34% growth over the first quarter 2003. This growth was primarily driven by our Mechanical division, which serves the automotive, aerospace and other discrete manufacturing and process industries. In the automotive industry, the world's leading OEMs and their suppliers continue to expand deployment of our eMPower Enterprise Solutions.
In particular, this quarter, we recorded several new customer wins from leading automotive tier 1 suppliers - primarily in Germany. Importantly, we are gaining momentum in the aerospace industry, which continues to adopt MPM and creates another growth opportunity for Tecnomatix. New customer wins in the first quarter included Fuji Heavy Industries, a leading Japanese aerospace company, which will be deploying our eMPower to gain cost and time efficiences in planning the assembly of airplane parts. "Our Electronics divison remains stable and we are seeing growing demand as customers incorporate our eMPower for Electronics solutions into their planning and manufacturing processes.
We recently announced several new customers wins including Samsung Computers, which has implemented Tecnomatix eMPower solutions in its first computer manufacturing facility in China, ACT Electronics, which has standardized on Tecnomatix eMPower solutions across all of its U.S. manufacturing and design facilities, and Bosch Security Systems, which has started deployment of our Assembly and Test solution in its South China facility." We are also pleased with the progress of our alliance with UGS PLM Solutions," continued Lotan. "Our mutual customers are enjoying the benefits of two leading companies joining forces to offer a full suite of product life-cycle management (PLM) solutions.
The open platform of both companies enables customers to choose best-in-class solutions from new product concept through manufacturing planning and execution, and eventual product retirement. Both UGS and Tecnomatix are seeing real benefits from this alliance as customers extend their PLM/MPM deployments and new customers join our customer base. In particular, together with UGS PLM Solutions, we signed a significant contract with a leading home appliance manufacturer, which intends to deploy our MPM solutions throughout all of its product divisions for planning and optimizing its assembly lines. "This quarter, we continued to demonstrate our technology leadership releasing several new products to help our customers further improve productivity on both individual and enterprise levels.
Our new eMPower 7.1 addresses a far wider community of users by providing an intuitive 3D graphics planning environment and tools for collaborative manufacturing planning. The eMPower Advanced Machining solution supports powertrain planning from early pre-planning to full detailed engineering. Additionally, our Xfactory 3.0 Product Tracking and Production Management system captures real-time manufacturing data from the shop floor and communicates it to the people and systems that need it.
"Finally, we are proud to be named one of the world's 500 top companies by Software Magazine in its 18th Annual Software 500 Survey. By placing well into the top half of the ranking, this recognition from the international community underscores the significant finanicial, organizational, product and new customer gains Tecnomatix has achieved over the past year. We entered 2004 optimistic about our business prospects, and we are determined to continue this upward trend as we successfully execute on our financial and strategic goals."
Forward-Looking Guidance
Oren Steinberg, chief financial officer and executive vice president of Tecnomatix Technologies said, "We continue to make steady progress in improving our financial performance and creating value for our shareholders. Based on our current plans and visibility, we expect to achieve revenue growth of approximately 15% for the full year 2004 over 2003, with improved profitability on a quarterly basis." Investor Conference Call / Webcast DetailsTecnomatix will review detailed first quarter 2004 results on April 28, 2004 at 8:30AM EDT. The conference call-in number is 973-935-8504. A replay will be available from 11:30AM EDT on April 28 through midnight EDT, May 5.
The replay number is 973-341-3080. The confirmation identification for both the live call and replay is 4713256.
The live call and replay will also be accessible over the web at http://investor.tecnomatix.com .View the Q1 Results: www.tecnomatix.com/downloads/financials/TCNO_1Q04.pdf About Tecnomatix Technologies Ltd. Tecnomatix Technologies Ltd.
(NASDAQ: TCNO) provides the world's leading Manufacturing Process Management (MPM) solutions for the automotive, electronics, aerospace and other manufacturing and processing industries. Tecnomatix eMPower solutions for MPM enable the design, simulation, and execution of production processes, and provide real-time control and visibility throughout shop-floor operations. More than 5000 companies worldwide are using eMPower solutions to reduce operating costs, accelerate product introductions, and shorten time-to-volume -- while maintaining high levels of product and process quality. With offices in over 20 countries, Tecnomatix supports such global leaders as BMW, Boeing, Comau, Ford, GM, Mazda, Philips, Schneider Electric and Volkswagen.
For more information, visit www.tecnomatix.com .