|Q1 2006 Highlights
§ Record quarterly revenue of $19.35 million achieved in the first quarter, representing growth of 29% over Q1-05
§ Net income of $1.48 million or $0.05 per share
§ 54% gross margin
§ Record software license revenue of $4.21 million
§ Continued appreciation of the Canadian dollar had a negative after tax impact of $0.02 per share
§ Matrikon confirms fiscal year 2006 guidance for revenue growth of 10% to 15% and net income growth of 34% to 62%
Edmonton, AB -January 12, 2006 - Matrikon Inc. (TSX: MTK), a leading provider of solutions for industrial intelligence, today reported financial results for the first quarter of fiscal year 2006, which ended November 30, 2005.
First quarter revenue grew by 29% to $19.35 million from $14.96 million in the comparable period of fiscal 2005. Net income in the first quarter was $1.48 million, or $0.05 per share, compared to $0.20 million, or $0.01 per share, in the first quarter of 2005. First quarter net income was reduced by $0.70 million or $0.02 per share (net of tax) as a result of foreign currency fluctuation compared to a reduction of $1.71 million or $0.04 per share (net of tax) in the same period of fiscal year 2005.
"We are very pleased with our overall results," stated Amin Rawji , president & chief executive officer of Matrikon. "Our record product sales in the first quarter validate the value that our technology is delivering to our clients and will be a catalyst for consulting revenue and margins in subsequent quarters. We are confident that we are well positioned to sustain momentum throughout 2006 despite the unrealized foreign exchange currency translation losses we've seen in the first quarter."
Management reiterates previous guidance of 10% to 15% revenue growth and 34% to 62% net income growth for fiscal 2006.
MD&A and Financial Statements
- On September 1, 2005, Matrikon completed the acquisition of Matrikon Deutschland AG (MDAG) to further expand Matrikon's footprint in the European market. MDAG had built a solid product revenue base since becoming a Matrikon distributor in July 2004.
- Matrikon Australia signed an AUD $3.6 million subcontract for the upgrade of the coal fired boiler at BHP Billiton's Queensland Nickel Yabulu Refinery near Townsville ( Queensland , Australia ).
- Bayer MaterialScience AG chose Matrikon's alarm management solution, ProcessGuardT, as its process control technology standard for alarm management at 40 sites across the globe.
- Subsequent to the quarter, Amin Rawji was appointed as Matrikon's chief executive officer (CEO). Amin succeeds Nizar J. Somji, who was named non-executive chairman of the board.
- A global pulp and paper company entered a corporate license agreement for ProcessDoctorT as part of its continuous improvement initiative for reducing paper mill variability. ProcessDoctor will be installed at 20 sites across North America .
The complete Management's Discussion and Analysis and Financial Statements can be found on Matrikon's website at www.matrikon.com/investors or by contacting Nicole Sayler at 1-877-628-7456 extension 4010.
Conference Call Thursday, January 12 at 5:00 pm Eastern
Matrikon President and CEO Amin Rawji and CFO Nimal Rodrigo will hold a conference call to discuss first quarter results on Thursday, January 12 at 5:00 pm Eastern time (3:00 pm Mountain time). To participate live, call 416-644-3433 in the Toronto area and 1-800-814-4941 for all other areas.
A replay will be available until midnight on Thursday, January 19, 2006. To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21170758#.
The conference call will also be web cast at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1335180
For more information, contact:
Matrikon, ProcessGuard and ProcessDoctor are trademarks or registered trademarks of Matrikon Inc.