Matrikon Reports 27% Revenue Growth, 69% Earnings Growth For Fiscal 2003 | Automation.com

Matrikon Reports 27% Revenue Growth, 69% Earnings Growth For Fiscal 2003

Edmonton, AB -November 5, 2003 - Matrikon Inc. (TSX: MTK), a leading industrial IT solutions provider, today reported consolidated financial results for the fourth quarter and year ended August 31, 2003. Fiscal 2003 marked Matrikon's 15th consecutive year of growth and profitability.

Matrikon achieved record revenue in both the fourth quarter and for fiscal year 2003. Software license fees continue to drive revenue growth, having increased by over 100% in both the quarter and fiscal year periods when compared to the equivalent periods of 2002.

"We continued to execute our strategy and transition the company as planned," said Nizar J. Somji, Matrikon's president and chief executive officer. "We are pleased with our results for 2003 and with the momentum we have built. Our products continue to gain traction, we have successfully integrated Australian operations and they are growing profitably, and financially we have never been stronger. We are positioned very well to continue growing globally and to meet our long term objectives."

Fiscal year revenue grew by 27% to $47.86 million from $37.58 million in 2002. Net income for the year grew 69% to $2.63 million or $0.11 per share from $1.55 million or $0.07 per share in the prior year. Revenue for the fourth quarter was a record $12.45 million compared to revenue of $9.04 million for the fourth quarter of 2002. Net income for the three-month period was $0.85 million or $0.03 per share versus $0.14 million or $0.01 per share during the same period in fiscal 2002.

Outlook & fiscal year 2004 targets

Matrikon is committed to sustainable long-term growth. Although discretionary IT spending has been weak for some time, Matrikon has been successful at winning projects of increasing size and value and has increased the number of corporate license agreements for its proprietary products. Management believes that the company is positioned to continue to grow. Based on current contracts underway and assuming Matrikon's ability to win new business continues at the current pace and other factors remain favorable, management expects the company to achieve revenue growth of 20% to 40% and earnings growth of 20% to 40% during fiscal year 2004. Due to the various risks associated with the numerous factors that may affect actual results, Matrikon discloses a target range.

Quarter Highlights: new product releases, corporate license agreements, Australian contracts

The BOC Group, the global industrial gases, vacuum technologies and distribution services company, signed a 5-year corporate license agreement for Matrikon's Process Suite and Connectivity Suite products at 1,100 plants.

Central Alberta Midstream, one of Alberta's largest gas processing companies, awarded Matrikon a 5-year, 1,000 well contract for SCADANet. SCADANet is an ASP (application service provider) model gas production solution and was subsequently rebranded as Total-InSite for Oil and Gas.

CSR Sugar, one of the largest sugar millers in the world, signed a multi-plant, 3-year corporate agreement with Matrikon for the provision of process information management system services. The contract also includes corporate licenses for ProcessNet and Matrikon's Connectivity Suite of products.

BHP Billiton's Queensland Nickel facility signed a AUD$1.93 million contract with Matrikon's Australian division for a complete control system solution for a boiler upgrade and power station common services.

Matrikon's distributor in Korea licensed the Matrikon name and now exclusively distributes Matrikon products.

The second annual industry advisory board meetings were held in St. Louis. The industry board provides a forum for our major clients to participate in Matrikon's strategic direction and ensures that our vision is aligned with the needs of our clients.

Matrikon released a new version of ProcessNet, our flagship plant visualization and collaboration product, and launched MxNet, a visualization and collaboration product specifically designed for discrete industries. A new vertical application for planning and scheduling in the plastics injection molding industry was also introduced.

Subsequent to the quarter, Matrikon completed a $10 million private placement.

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

Conference Call Thursday, November 6 at 5:00 pm Eastern

Matrikon President and CEO Nizar J. Somji and CFO Shafin U. Kanji will hold a conference call to discuss fiscal year results on Thursday, November 6 at 5:00 pm Eastern (3:00 pm Mountain). To participate live, call 416-913-8746 in the Toronto area and 1-800-814-4890 for all other areas.

A replay will be available until midnight on Thursday, November 13. To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21022492#.

The conference call will also be web cast at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=665280


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