Matrikon(TM) announces second quarter 2007 results



    
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    Q2-2007 Highlights
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    -  Q2 revenue of $17.25 million; $36.05 million year-to-date
    -  Q2 net income of $0.31 million or $0.01 per share; $2.11 million or
       $0.07 per share year-to-date
    -  Gross margin of 58% in the quarter and year-to-date
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    EDMONTON, April 12 /CNW/ - Matrikon Inc. (TSX: MTK), a leading provider
of solutions for industrial intelligence, today reported financial results for
the second quarter of fiscal year 2007, which ended February 28, 2007.
    Matrikon president & CEO Amin Rawji commented on the quarter: "We
continue to transition our business to focus on Matrikon solutions. This
transition has not happened as quickly as we would like; however our growth
opportunities do remain strong.
    "We remain on track with many of our key strategies: we continue to post
solid software license revenue; we completed two acquisitions in the quarter
to complement our geographic and technology growth strategies; and we closed
two MI3(TM) contract agreements in the quarter.
    "Our transition from low to high margin consulting business has been slow
as we have not replaced low margin system integration work in North America
with higher margin work as quickly as expected. Employees involved in the
system integration work have been retrained to focus on the implementation of
high margin Matrikon solutions."
    Second quarter revenue was $17.25 million compared to $17.89 million in
the second quarter of 2006. Net income in the second quarter was
$0.31 million, or $0.01 per share, compared to $1.23 million, or $0.04 per
share in the comparable period of fiscal year 2006. Second quarter net income
was increased by $0.44 million or $0.01 per share net of tax for foreign
currency translation gains versus a decrease to net income of $0.64 million or
$0.01 per share net of tax in Q2-2006.
    Year-to-date revenue was $36.05 million compared to $37.24 million in
2006. Year-to-date net income was $2.11 million, or $0.07 per share, compared
to $2.71 million, or $0.09 per share in the comparable period of fiscal year
2006. Year-to-date net income was increased by $1.23 million or $0.03 per
share net of tax for foreign currency translation gains versus a decrease to
net income of $1.34 million or $0.03 per share net of tax in the first half of
fiscal 2006.

    
    Quarter Highlights:
    -  Matrikon completed the acquisition of Industrial Control Software
       Limited (ICS) on December 15, 2006. ICS was a profitable private
       company based in Matlock, England. ICS further extends Matrikon's
       presence in the strategic European market, and has complementary
       technology and a solid customer base.

    -  Matrikon completed the acquisition of Axonwave Software Inc. a private
       technology company. Axonwave's Content Intelligence System for
       analyzing unstructured data (such as word processing documents, email
       and PDF files) complements Matrikon's industrial intelligence
       infrastructure

    -  Nizar J. Somji returned to Matrikon's management team as interim chief
       financial officer on February 12, 2007. Nizar founded Matrikon in 1988
       and was chief executive officer until December 2005 at which time he
       retired to become Chairman of Matrikon's board. Former CFO, Tariq
       Malik left Matrikon to pursue other opportunities.
    

    MD&A and Financial Statements
    The complete Management's Discussion and Analysis and Financial
Statements for the current quarter can be found on Matrikon's website at
http://www.matrikon.com/corporate/investors/financial/q-reports.aspx or by
contacting Nicole Sayler at 1-877-628-7456 extension 4010.

    Conference Call Friday, April 13 at 8:00 am Eastern
    Matrikon President and CEO Amin Rawji and CFO Nizar J. Somji will hold a
conference call to discuss second quarter results on Friday, April 13 at
8:00 am Eastern time (6:00 am Mountain time). To participate live, call
416-644-3416 in the Toronto area and 1-800-732-9303 for all other areas.
    A replay will be available until midnight on Tuesday, April 24, 2007. To
access the playback service, please dial 416-640-1917 in Toronto or
1-877-289-8525 elsewhere, reservation number 21225478 followed by the pound
sign.
    The conference call will also be webcast and podcast at
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1789260

    Matrikon and MI3 are trademarks or registered trademarks of Matrikon Inc.

    %SEDAR: 00016228E




For further information:

For further information: Nicole Sayler, Corporate Communications &
Investor Relations, (780) 945-4010, email: nicole.sayler@matrikon.com

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