Matrikon releases Q4 and fiscal year 2009 results and declares quarterly
dividend
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Highlights
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- Revenue of $17.62 million in Q4-09; $73.24 million for FY-09
- Net income of $0.49 million in Q4-09; $2.31 million for FY-09
- Gross margin of 54% in Q4-09; 56% for FY-09
- Cash generated from operating activities was $1.18 million in Q4-09;
cash used for operating activities was $0.09 million for FY-09
- Board of directors declares quarterly dividend of $0.03 per common
share
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"Late in the fourth quarter, we had a record project win for cyber security in the power and utilities industry. We anticipate even more opportunities in this industry given the timeline for compliance and Matrikon's expertise in this area.
"Following Q3-09, we made investments in R&D and staffing levels and made the adjustments needed to bring cost structures into alignment with revenue levels. With this realignment and the positive indications that more of the opportunities in our pipeline will proceed in the near term, we are well positioned as the economy recovers. Given the business closed in Q4-09 as well as the strong pipeline, we anticipate to continue to improve from our fourth quarter performance fiscal year 2010."
Based on projects underway and expected improvements to Q1-10 results, Matrikon's board of directors also declared a dividend of
For FY-09, Matrikon posted revenue of
Fourth quarter revenue was
Quarter Highlights:
- Revenue improved by 8% compared to Q3-09 as Solutions (consulting and
equipment) revenue increased by 9%. The primary contributor to this
improvement was an increase of 86% in equipment revenue.
- Software license revenue increased by 12% in Q4-09 compared to Q3-09
as off-the-shelf products sales increased 18% and OPC sales increased
10%.
- Gross margin was up 4 basis points to 54% on higher revenue and flat
cost of sales in the quarter compared to Q3-09.
- Total expenses declined by 10% and represented 51% of revenue,
compared to 60% in Q3-09. Q3-09 expenses were elevated due to
restructuring costs incurred at the end of quarter.
- Net income recovered from a loss of $2.96 million in Q3-09 to income
of $0.49 million in Q4-09 as a result of increased gross profit and a
reversal in foreign currency translation rates. We realized a foreign
currency translation gain of $0.005 million in Q4-09 compared to a
loss of $2.13 million in the previous quarter.
- Cash provided by operating activities increased from $0.52 million in
Q3-09 to $1.18 million in Q4-09 as we continued to focus on accounts
receivable collections.
- MatrikonOPC(TM) announced a global partnership with Shell for OPC
Connectivity.
- Matrikon announced a US$1.94 million contract to provide a power
generation company in Illinois with a comprehensive asset management
solution.
- Matrikon announced a significant project for a major US power company
worth a record value of US$13.5 million towards the end of the
quarter. This strategic win capitalizes on Matrikon's core strength
of real-time monitoring and reporting to protect critical assets and
processes and achieve compliance under new North American Electric
Reliability Council (NERC) Critical Infrastructure Protection
regulations.
Outlook
We remain committed to our strategy of transitioning to a Solutions oriented company and will continue to build upon it in 2010. Our main objective for FY-2010 is to return to top line growth while improving our profit margin.
A key element of our strategy is to continue development of new industry applications based on our Intuition framework, particularly for the power industry. At the same time, we will continue to grow the market share of our existing applications (such as Well Performance Monitor(TM) and Mobile Equipment Monitor(TM)) as the sectors that these applications serve begin to recover from the recession.
Annual Results
Complete financial statements, notes to the financial statements and management's discussion and analysis will be filed on SEDAR (www.sedar.com) by
Our information circular and other annual materials will be mailed on or about
Conference Call
A conference call will be held on
A replay will be available until
The conference call will also be webcast and podcast at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2865280
Annual General Meeting
We invite you to join us at Matrikon's 2009 annual shareholders meeting on
About Matrikon
Matrikon (www.matrikon.com) provides industrial software solutions to process control industries, empowering their clients to achieve operational excellence. Matrikon products transform production data into knowledge and action that enable users to maximize performance while managing risk. With offices throughout
Matrikon, Matrikon Well Performance Monitor and Matrikon Mobile Equipment Monitor are trademarks or registered trademarks of Matrikon Inc.
Forward Looking Statements
In order to provide our investors with an understanding of our current results and future prospects, our communications often include written or oral forward-looking statements. This news release and other materials filed with the Canadian securities regulators contain statements that are forward-looking. These statements are made pursuant to the "safe harbor" provisions of applicable Canadian securities legislation. These statements represent Matrikon's intentions, plans, expectations and beliefs and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances. These statements may include, but are not limited to, comments about: our objectives and priorities for 2010 and beyond, our strategies, expectations for our financial condition, the outlook for our operations, and external factors that may impact results, including global economies and industry trends.
Forward-looking statements require assumptions and involve risks and uncertainties related to our business and the general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from the targets, expectations, estimates or intentions expressed in the forward-looking statements. We caution readers of this news release not to place undue reliance on our forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic conditions in the countries in which we operate; currency fluctuations; market demand for our products and services; our ability to execute projects and deliver solutions; our ability to execute our strategic plans and to complete and integrate acquisitions; the degree of competition in the geographic and business areas in which we operate; our ability to attract and retain qualified employees and contain payroll costs; our ability to contain expenses; technological changes and research and development; the length of the sales cycle required to close larger solution contracts; availability of financial resources to carry out our strategy; our ability to protect our intellectual and intangible properties; legal claims; critical accounting estimates; the possible effects on our business of war or terrorist activities; disease or illness that affects local, national or international economies; and disruptions to public infrastructure, such as transportation, communications, power or water supply. We caution that this list is not exhaustive of all possible factors.
Other factors could adversely affect our results. For more information, please see the discussion on the principal risks that could affect our results, beginning on page 52 of Matrikon's 2008 annual report.
The assumptions behind our outlook for fiscal 2010 include the following: that business opportunities will remain strong and the opportunities in our pipeline will materialize as contracts; that significant projects will continue as scheduled; that the global political climate will remain stable; that the global economy, particularly with respect to the markets we serve, will recover gradually with a full recovery expected by the third quarter of FY2010; that our clients will have adequate access to capital and will continue to invest in initiatives that support efficiency and reduce costs; that foreign exchange rates will not fluctuate excessively; that we will continue to be able to inspire, motivate and maintain our employee base at a sufficient level to deliver on our objectives; and that our effective tax rate will be in the range of 26% to 30%
When relying on forward-looking statements to make decisions with respect to Matrikon, investors should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Unless required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the company or on its behalf.
Unaudited
Condensed Balance Sheets As at August 31
(thousands of Canadian dollars) 2009 2008
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Assets
Current assets:
Cash & cash equivalents $ 8,734 $ 15,721
Accounts receivable 23,456 22,782
Contracts in progress 6,894 6,246
Future income taxes 492 400
Prepaid expenses 1,286 1,529
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40,862 46,678
Future income taxes 525 762
Property & equipment 4,253 3,374
Intangible assets 672 1,103
Goodwill 15,807 15,851
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$ 62,119 $ 67,768
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Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 8,603 $ 10,065
Deferred revenue 8,292 8,909
Income taxes payable 462 1,249
Future income taxes 971 2,046
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18,328 22,269
Future income taxes 89 316
Non-controlling interest 40 -
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129 316
Shareholders' equity:
Share capital 31,735 30,633
Contributed surplus 2,502 2,195
Accumulated other comprehensive income (107) 129
Retained earnings 9,532 12,226
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43,662 45,183
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$ 62,119 $ 67,768
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Unaudited Unaudited
Condensed Statements of Income 3 months ended Year ended
(thousands of Canadian dollars August 31 August 31
except per share amounts) 2009 2008 2009 2008
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Revenue:
Consulting $ 10,866 $ 11,503 $ 43,254 $ 46,497
Software licenses 3,041 5,006 14,147 17,879
Support 2,653 2,471 10,295 8,923
Equipment sales 993 1,142 4,887 5,947
Interest income 69 40 655 785
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17,622 20,162 73,238 80,031
Cost of sales 8,176 8,259 32,183 34,862
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9,446 11,903 41,055 45,169
Expenses:
Consulting 1,653 1,492 7,408 6,094
Sales and marketing 2,007 1,632 7,632 5,855
Research and development 1,235 1,668 6,362 6,701
General and administrative 3,359 3,639 13,773 12,297
Amortization 295 340 1,229 1,276
Stock-based compensation 369 290 1,407 1,004
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8,918 9,061 37,811 33,227
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Income before the undernoted 528 2,842 3,244 11,942
Foreign currency translation
gain (loss) 5 768 (509) 310
Other income 123 627 420 1,236
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128 1,395 (89) 1,546
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Income (loss) before income taxes 656 4,237 3,155 13,488
Income taxes expense (recovery):
Current 1,045 (1,131) 1,924 1,011
Future (893) 2,785 (1,109) 3,379
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152 1,654 815 4,390
Non-controlling interest (15) - (26) -
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Net income $ 489 $ 2,583 $ 2,314 $ 9,098
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Earnings per share:
Basic earnings per share $ 0.02 $ 0.09 $ 0.07 $ 0.30
Diluted earnings per share $ 0.02 $ 0.08 $ 0.07 $ 0.29
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Weighted average shares
outstanding (000s):
Basic 30,936 30,636 30,946 30,511
Diluted 31,029 31,370 31,037 31,370
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For further information: Nicole Sayler, Corporate Communications Director, (780) 945-4010, (877) 628-7456 x 4010, email: [email protected]
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