CIMdata PLM Industry Summary Online Archive

20 October 2005

Financial News

MSC.Software Announces Limited Third Quarter Financial Information

MSC.Software Corp. announced limited financial information for the third quarter ended September 30, 2005. As previously disclosed, MSC.Software will restate its financial statements for the periods subsequent to December 31, 2001. Since the Company is unable to quantify the exact impact of the restatement on its financial results at this time, the Company has limited its quarterly financial disclosure.

The Company continues to work in conjunction with its independent registered accounting firm to complete the financial restatements for the periods subsequent to December 31, 2001. The Company is approaching the final stages of the restatement process and remains committed to thoroughly and accurately completing the restatement as quickly as possible. MSC.Software anticipates that the restatement and the Company's required SEC filings will be completed in the fourth quarter of 2005.

Cash, cash equivalents and investments at September 30, 2005 stood at $102.4 million compared to $109.6 million at June 30, 2005. In the last three fiscal years, cash has decreased from the second quarter to the third quarter, due to seasonal trends in our business.

In the third quarter, in the Americas, major software and services transactions were signed with Lockheed Martin and Spirit AeroSystems. In Europe, during the third quarter, major software and services transactions were signed with British Aerospace, Valeo Engine Cooling, Sukhoi Civil Aircraft and Peugeot. In Asia-Pacific, major transactions were signed with Aisin AW and Nikon in Japan; with Daewoo Shipbuilding in Korea; Chang'an Auto in the PRC; Arvin Meritor in India, and ResMed in Australia.

"We were pleased with our business execution in the third quarter, with EMEA and AP achieving plan, while in the America's we have turned the corner and delivered closer to plan," commented William Weyand, CEO and Chairman, MSC Software. "Continued penetration of our VPD solutions within our installed base created a number of multi-year, multi-million dollar transactions in the quarter, and confirms MSC is reasserting its leadership position in the aerospace and automotive industries. In addition, we had a number of account wins in emerging markets such as medical devices and consumer products."

"During the quarter, we continued to strengthen our board of directors and our senior management team with executives who bring valuable enterprise software business expertise to an already excellent team," continued Mr. Weyand. "The new MSC team will accelerate our transition into an enterprise solutions provider with a focused product offering that is aligned with our customer needs and the market opportunities."

Conference Call

A conference call to discuss third quarter results will be held today at 8:30 am Pacific Time. This conference call is being Webcast and can be accessed at the following URL: http://www.mscsoftware.com/ir/ , or by dialing in to (800) 374-0151 in the U.S. or to (706) 634-4981 for International callers. To participate in the live conference call, use the following conference ID code: 1185914.

An archived version of the conference call will be available at http://www.mscsoftware.com/ir/ . The teleconference replay will be available for 48 hours after the call at: (800) 642-1687 or Intl. (706) 645-9291 using the conference ID code: 1185914.

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