Matrikon™ Delivers Record Revenue and Earnings in the Second Quarter of 2005
Edmonton, AB April 7, 2005 Matrikon Inc. (TSX: MTK), a leading provider of solutions for industrial intelligence, today reported record financial results for the fiscal year 2005 second quarter, which ended February 28, 2005. Second quarter revenue grew 65% to $16.72 million from $10.15 million in the comparable period of fiscal 2004. Year-to-date revenue grew 30% to $31.68 million compared to $24.45 million in the first six months of 2004. Net income for the second quarter was a record $2.35 million (or $0.08 per share) compared to a net loss of $0.36 million (or a loss of $0.01 per share) in the comparable period of fiscal year 2004. Year-to-date income was $2.56 million compared to $0.51 million in the first six months of last year. Over the past 12 months we have focused our attention on increasing operational efficiencies, rebuilding the business processes and driving profitability, commented Nizar J. Somji, President and CEO of Matrikon. We have made solid progress on our strategy. Our products continue to evolve with new innovations and a focus on tighter integration between products to provide an integrated platform that supports solution deployment. We continue to transition to a solutions company and are increasingly engaging in strategic consulting and solution-based projects which command higher rates.The second quarter results are a strong validation of our efforts and we are well positioned with the systems, the people, the structure and the processes in place to now aggressively focus on growing the business.OutlookBased on second quarter results, including record product sales, improved efficiency within the project groups, strong growth in business from the oil and gas sector and Matrikons ability to continue to win repeat business and to continue to transition to a total solutions provider, management maintains previous estimates for revenue growth of 14% to 23% and net income growth of 49% to 89%. Management has considered the continued uncertainty of foreign exchange rates in arriving at these estimates. Quarter Highlights:
Matrikon requalified as one of Canadas 50 Best Managed Companies. The award program recognizes Canadian companies that demonstrate innovation, exceptional growth, financial success, and a strong corporate culture.
Matrikon expands into New Zealand with the opening of an office in Hamilton, New Zealand in March 2005.
Matrikon announced an agreement with ABB to certify Matrikons ProcessGuard alarm management solution as an IndustrialIT Enabled product. IndustrialIT Enabled products set the standard for productivity and ensure compliance with ABBs System 800xAs automation and information architecture.
ProcessACT software was presented with a Control Engineering Magazine Editors Choice Award in the process and advanced control category. ProcessACT is a complete solution for the design, development, simulation and implementation of enhanced and advanced process control strategies.
Matrikon and Husky Injection Molding Systems introduced SmartLink, a user-friendly and easily adaptable plant monitoring and advanced scheduling solution designed specifically to optimize plant performance in the plastics injection molding industry.
Second quarter employee utilization improved to 73% from 65% in the comparable period of 2004.
Subsequent to the quarter, Matrikon announced that it had been selected by Iluka Resources Limited to deliver a plant performance measurement system (PPMS) across thirteen mineral processing plants in Western Australia.MD&A and Financial StatementsThe complete Managements Discussion and Analysis and Financial Statements can be found on Matrikons website at www.matrikon.com/investors or by contacting Nicole Sayler at 1-877-628-7456 extension 4010.Conference Call Friday, April 8 at 8:30 am EasternMatrikon President and CEO Nizar J. Somji and CFO Nimal Rodrigo will hold a conference call to discuss fiscal year results on Friday, April 8 at 8:30 am Eastern time (6:30 am Mountain time). 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 Friday, April 15, 2005. To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21113735#. The conference call will also be web cast at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1024980.
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