Reports Record Quarterly Revenue
CINCINNATI - July 18, 2001 - SDRC (Nasdaq: SDRC) today announced its results for the second quarter of 2001, which exceeded consensus financial analyst estimates for both revenue and earnings. Revenues for the June quarter totaled $121.1 million, up 3% compared to $118.1 million last year, and a new company high. Net income for the quarter was $8.9 million, or $0.23 per share, compared to $8.3 million, or $0.23 per share last year.
Metaphase license revenue was up 46% over the same quarter last year, while total Metaphase revenue of $47.1 million was up 22% and comprised about 40% of the company's business for the quarter. Significant Metaphase license orders were received from Lear, Vought, Seagate, Giat Industries, and Mazda.
For the six months ended June 30, 2001, SDRC's revenue was $234.0 million, up 3% compared to the first six months of 2000, while net income was $14.7 million, or $0.39 per share, compared to $12.6 million, or $0.34 per share for the last year to date. Total Metaphase revenue for the six months ended June 30, 2001 was $91.9 million, up 23% over the same period last year.
"While some cite declining economic conditions, SDRC has continued to accelerate Metaphase license growth rates while gaining market share due to new web-native industry solutions and continually improving sales execution," stated Bill Weyand, chairman and CEO. "As we are sensitive to the global manufacturing slowdown and the difficulty of our ability to forecast the timing of large orders, we are nonetheless enthusiastic that our recent launch of TeamCenter? is creating a significant number of new opportunities for SDRC in all of our geographies. As stated before, 2000 was a transition year for SDRC, and we have regained the undisputed market leadership position for collaborative product commerce (CPC) and are the leading provider of Product Lifecycle Management (PLM) solutions as well."
Mr. Weyand continued, "Evidence of our successful transition and regained leadership was SDRC's launch in May of the industry's first collaborative applications suite for managing the total product life cycle. TeamCenter is completely new, and is the most up-to-date technology offering in the PLM market. According to industry analyst reports, the TeamCenter platform is two or three years ahead of our nearest competitor. SDRC's TeamCenter provides the world's manufacturing leaders with an opportunity to acquire and leverage next-generation collaboration capabilities for design, requirements, projects, and the product/supply chain. SDRC is truly the partner of choice and the only proven scalable solutions provider for enterprise clients with over 1000 users."
"In summary," noted Mr. Weyand, "we are excited about our pending acquisition by EDS Corporation (NYSE: EDS). Our companies share a common commitment to customer excellence and in providing total solutions for the PLM marketplace. Our cultures are similar, our visions are aligned, and SDRC's talented personnel will be a great asset to the EDS organization."
SDRC will hold a conference call at 5:00 P.M. Eastern Time today. The dial-in number is 888/928-9122 or 630/395-0486, the pass code is "SDRC." A replay of the call will be available until 11 P.M. Eastern Time Wednesday, July 25 by dialing 888/568-0857 or 402/998-0242. The conference call can also be accessed at www.streetevents.com.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties which could cause the actual results to differ materially from those projected, including the timely availability and acceptance of new products, global economic uncertainties, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's most recent reports on Forms 10-K and 10-Q.
Note to Editors: SDRC, I-DEAS and Metaphase are registered trademarks and TeamCenter is a trademark of Structural Dynamics Research Corporation. All other trademarks or registered trademarks belong to their respective holders.
Additional Information and Where to Find It: It is expected that SDRC will file a proxy statement with the SEC in connection with the Merger, and that SDRC will mail a Proxy Statement to its shareholders containing information about the Merger. Investors and security holders are urged to read the Proxy Statement carefully when it is available. The Proxy Statement will contain important information about SDRC, EDS, the Merger, the persons soliciting proxies relating to the Merger, their interests in the Merger and related matters. Investors and security holders will be able to obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov. Free copies of the Proxy Statement and these other documents may also be obtained from SDRC by directing a request through the Investors Relations portion of SDRC's website at http://www.SDRC.com or by mail to SDRC, 2000 Eastman Drive, Milford, Ohio 45150, attention: Investor Relations, telephone: (513) 576-2400.
In addition to the Proxy Statement, SDRC and EDS file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by SDRC or EDS at the SEC public reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at any of the SEC's other public reference rooms in New York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. SDRC's and EDS' filings with the SEC are also available to the public from commercial document-retrieval services and at the Web site maintained by the SEC at http://www.sec.gov.
Participants in Solicitation: SDRC, its directors, executive officers and certain other members of management and employees may be soliciting proxies from SDRC shareholders in favor of the Merger. Information concerning the participants in the solicitation is set forth in a Current Report on Form 8-K filed by SDRC on May 24, 2001.
Cautionary Note Regarding Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this release are forward-looking statements that involve risks and uncertainties which could cause the actual results to differ materially from those projected, including the timely availability and acceptance of new products, global economic uncertainties, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Company's most recent reports on Forms 10-K and 10-Q. In addition, the completion of the merger and related transactions with EDS is subject to the satisfaction or waiver of customary conditions that involve future developments.
@ 2001 KFKI ISYS Informatikai Kft.