Matrikon Reports Record Revenue And Earnings In First Quarter | Automation.com

Matrikon Reports Record Revenue And Earnings In First Quarter

January 202004
Edmonton, AB -January 20, 2004 - Matrikon Inc. (TSX: MTK), a leading industrial IT solutions provider, today reported consolidated financial results for the fiscal year 2004 first quarter, which ended November 30, 2003. Matrikon achieved record revenue and earnings in the first quarter.

"We are on track to achieve our growth targets," said Nizar J. Somji, Matrikon's president and chief executive officer. "Software sales continue to gain momentum and we are pleased that the recurring portion of our revenue - extended support - is beginning to reflect the strong software sales of previous quarters. We continue to explore potential acquisitions that may accelerate our growth strategy."

First quarter revenue grew by 21% to $14.30 million from $11.80 million in the first quarter of 2003. Net income for the first quarter grew 59% to $1.00 million (or $0.04 per share) from $0.63 million (or $0.03 per share) in the comparable period of fiscal year 2003.

Outlook
Based on first quarter results and 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:
Matrikon completed a private placement for 4,545,455 common shares to a group of institutional investors at a price of $2.20 for net proceeds of $9.40 million. The net proceeds will be used to fund growth and to enable Matrikon to consider investments or acquisitions that complement our growth strategies. Management believes that the financial resources of the company are sufficient to carry out current growth strategies.

Matrikon acquired all the programs, software, code, intellectual property, customer lists, and data, of Comcept Technologies Inc., a small private consulting company that provided solutions in automation, optimization, data modeling and integrated information systems. Comcept's client base was predominantly petroleum and petrochemical companies in the Middle East and Europe. Matrikon now employs four prior Comcept employees.

Santos Limited, Australia's largest gas producer, selected Matrikon for a multi-year corporate contract which included Matrikon products, services and support for the capture of historical process information.

During and subsequent to the quarter, Matrikon was honored to receive several awards, including Canada's Top 100 Employers, the NSERC Synergy Award for Innovation in partnership with the University of Alberta, Alberta Venture's Fastest Growing Companies and Canada's 50 Best Managed Companies.

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/f_quarterly.asp or by contacting Nicole Sayler at 1-877-628-7456 extension 4010

Conference Call Wednesday, January 21 at 11:30 am Eastern
Matrikon President and CEO Nizar J. Somji and CFO Shafin U. Kanji will hold a conference call to discuss fiscal year results on Wednesday, January 21 at 11:30 am Eastern (9:30 am Mountain). To participate live, call 416-640-4127 in the Toronto area and 1-800-814-4857 for all other areas.

A replay will be available until midnight on Wednesday, January 28, 2004. To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21033254#.

The conference call will also be web cast at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=713680

For more information, contact:

Nicole Sayler
Corporate Communications & Investor Relations
780-945-4010


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