MetaSolv's First Quarter Earnings More Than Double to $0.13 Per Diluted Share; Revenues Increase 49% to $38.8 Million

Apr 18, 2001, 01:00 ET from MetaSolv, Inc.

    PLANO, Texas, April 18 /PRNewswire/ -- MetaSolv, Inc. (Nasdaq:   MSLV), the
 leading provider of order management and service fulfillment solutions for
 next generation communications providers, today announced record revenues and
 net income for its first quarter ended March 31, 2001.
     Revenues for the first quarter rose 49 percent to $38.8 million from
 $26.0 million for the first quarter of 2000.  Net income for the quarter was
 $5.1 million, or $0.13 per diluted share, approximately double the
 $2.6 million, or $0.06 per diluted share, for the first quarter last year.
 The first quarter represents the fifth consecutive quarter in which MetaSolv's
 diluted earnings per share have grown at a triple-digit pace from the
 comparable prior-year quarter.
     Commenting on the announcement, Jim Janicki, CEO of MetaSolv, said, "We
 are pleased to report substantial profitable growth for the first quarter of
 2001, in spite of a difficult environment in the overall communications
 services market.  The Company's performance reflects the mission-critical
 nature of its best-in-class MetaSolv Solution(TM) operations support system
 ("OSS") software.  We help our customers become more competitive by cutting
 their time to market, improving productivity and increasing operating
 leverage.  These strengths are critical to our customers in their highly
 competitive markets."
     MetaSolv made significant progress in the first quarter on the further
 development of its international markets, a key strategic initiative for 2001.
 During the quarter, we announced the completion of implementation of the
 MetaSolv Solution by Amsterdam-based Novaxess, a leading provider of broadband
 communications services to small and medium-sized businesses, and by Brazilian
 communications service provider, Global Village Telecom, which has a service
 territory covering approximately 30% of Brazil.  In addition, we announced the
 implementation of the MetaSolv Solution for Radianz, a company formed by
 Reuters and Equant that operates the world's largest IP network for the global
 financial services industry.  MetaSolv believes that its international
 business is well positioned for growth during the coming quarters as a result
 of significant demand for its newest release, MetaSolv Solution 5.0.  This
 release, which was launched on April 11, will enable both MetaSolv's
 international and domestic customers to expand and manage their communication
 services across multiple countries or globally.
     MetaSolv also continues to make progress on another key strategic
 initiative, offering our solution to the enterprise market.  In early
 discussions, potential enterprise customers have confirmed the need for
 communications management solutions such as MetaSolv to help reduce costs and
 more efficiently plan, procure, and manage their voice, high-speed data, and
 Internet-based services.  During the first quarter, the Company implemented
 the MetaSolv Solution in its own operations, demonstrating the value of the
 software in an enterprise environment.  Although MetaSolv does not expect
 material revenues from the enterprise market in 2001, it currently expects to
 begin working on enterprise implementations with several customers during the
 year.
     During the first quarter, MetaSolv increased the strength of its financial
 position, which has been continually enhanced since the Company's initial
 public offering in November 1999.  At the end of the latest quarter,
 MetaSolv's combined cash and marketable securities increased to $145.2 million
 from $114.8 million at the same time in 2000, and stockholders' equity grew to
 $153.2 million from $125.8 million.  The Company also continued to have no
 bank debt outstanding as of the end of the first quarter.
     Janicki concluded, "We have clearly seen the impact of the current
 difficult market on communications providers, particularly in the latter
 stages of the quarter.  We saw a number of customers defer or cancel
 purchases, resulting in our signing only three new customers during the first
 quarter, our lowest total in several years.  Nevertheless, we continue to see
 opportunities for growth in our existing markets, internationally and in the
 enterprise market.  MetaSolv is positioned to help these companies perform
 mission-critical operations faster, more accurately and less expensively.  As
 the industry leader, and with the managerial and financial resources in hand
 to continue the implementation of our strategic initiatives, we are confident
 of MetaSolv's prospects for long-term growth."
 
     Conference call notice
     MetaSolv will hold a conference call to discuss this press release today
 at 5:00 p.m. Eastern time.  Investors may listen to the conference call over
 the Internet by going to www.metasolv.com and clicking Investor Relations, or
 by going to the following web sites -- www.streetevents.com and www.vcall.com.
 Please visit the website at least fifteen minutes early to register, download,
 and install any necessary audio software.  For those who cannot listen to the
 live broadcast, a replay will be available shortly after the call and through
 the end of business on April 25, 2001, at (719) 457-0820 (confirmation number:
 710097) and at the web sites referenced above.
     MetaSolv is a registered trademark; the MetaSolv logo and MetaSolv
 Solution are trademarks of Metasolv Software, Inc.
 
     About MetaSolv, Inc.
     MetaSolv, Inc., headquartered in Plano, Texas, was founded in 1992.
 MetaSolv, through its wholly owned subsidiary, MetaSolv Software, Inc., is the
 leading provider of order management and service fulfillment solutions to next
 generation communications providers.  The MetaSolv Solution(TM) integrates a
 communications provider's business from network planning and engineering to
 operations and customer care.  With the MetaSolv Solution, communications
 providers can quickly and efficiently respond to market demand, optimize their
 service fulfillment processes, and build stronger relationships with their
 customers.  MetaSolv has regional offices in Atlanta, Chicago, Denver, McLean,
 VA and London.  MetaSolv's web site is www.metasolv.com.  Contact MetaSolv
 directly at (800) 747-0791.
     This press release contains forward-looking statements that are based upon
 current information and expectations, and that involve a number of risks and
 uncertainties.  Actual results could differ materially from MetaSolv's current
 expectations.  MetaSolv assumes no obligation to update any such
 forward-looking statement.  Using the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995, MetaSolv cautions you that these
 statements may be affected by the important factors described in any MetaSolv
 documents or reports filed from time to time with the Securities and Exchange
 Commission, including the Company's Annual Report on Form 10-K for 2000, and
 subsequent filings, as well as by other factors, including: the Company's
 limited operating history and variance of quarterly operating results; its
 reliance on sales of MetaSolv Solution software; its need to expand sales and
 distribution capabilities; its need to expand its software with new
 functionality and to new customer markets; its ability to attract and retain
 qualified employees; its continued use of strategic relationships to implement
 and sell its products; its ability to manage growth; its planned international
 operations; its ability to meet customer expectations; the quality of its
 software delivered; competition; growth of the internet and internet-based
 services; consolidation within the telecommunications industry; and
 limitations on the ability of customers to obtain adequate financing.
 
                                 METASOLV, INC.
                         Summary Financial Information
                     (In thousands, except per share data)
 
                                                         Three Months Ended
                                                              March 31,
                                                        2001           2000
     Revenues                                         $38,806        $25,990
 
     Income from operations                            $6,307         $2,679
     Net income                                        $5,115         $2,579
     Earnings per share:
     Basic                                              $0.14          $0.07
     Diluted                                            $0.13          $0.06
     Weighted average shares outstanding:
     Basic                                             35,940         34,884
     Diluted                                           39,689         40,544
 
 
                                 METASOLV, INC.
                              Statements of Income
                     (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
     Revenues:
      License                                         $24,930        $13,193
      Service                                          13,876         12,797
       Total revenues                                  38,806         25,990
 
     Cost of revenues:
      License                                           2,998            547
      Service                                           7,324          7,528
       Total cost of revenues                          10,322          8,075
 
 
     Gross profit                                      28,484         17,915
 
     Operating expenses:
      Research and development                          8,317          7,047
      Sales and marketing                               7,991          4,647
      General and administrative                        5,869          3,542
       Total operating expenses                        22,177         15,236
 
     Income from operations                             6,307          2,679
     Interest and other income, net                     1,877          1,619
     Income before income taxes                         8,184          4,298
     Income tax expense                                 3,069          1,719
     Net income                                        $5,115         $2,579
     Earnings per share:
      Basic                                             $0.14          $0.07
      Diluted                                           $0.13          $0.06
     Weighted average shares outstanding:
      Basic                                            35,940         34,884
      Diluted                                          39,689         40,544
 
 
                                 METASOLV, INC.
                            Condensed Balance Sheets
                                 (In thousands)
 
                                                    March 31,      December 31,
                                                      2001              2000
         Assets
     Current assets:
      Cash and cash equivalents                      $111,429        $93,695
      Marketable securities                            33,774         48,843
      Trade accounts receivable, less
       allowance for doubtful
       accounts of $6,223 in 2001
       and $5,200 in 2000                              30,830         23,994
      Unbilled receivables                              1,187          1,510
      Prepaid expenses                                  4,753          6,090
      Other current assets                              4,628          4,921
       Total current assets                           186,601        179,053
 
     Property, plant and equipment, net                15,456         14,491
     Equity investments                                 4,000          4,000
     Other assets                                         100             84
       Total assets                                  $206,157       $197,628
 
         Liabilities and Stockholders' Equity
     Current liabilities:
      Accounts payable                                 $6,805         $7,910
      Accrued expenses                                 19,458         16,468
      Deferred revenue                                 26,415         24,025
       Total current liabilities                       52,678         48,403
 
     Deferred income taxes                                308            275
 
     Stockholders' equity:
      Common stock                                        180            180
      Additional paid-in capital                      129,634        130,522
      Deferred compensation                              (371)          (300)
      Unrealized gains on marketable
       securities                                          65            ---
      Retained earnings                                23,663         18,548
       Total stockholders' equity                     153,171        148,950
       Total liabilities and
        stockholders' equity                         $206,157       $197,628
 
      Contacts:
      Investor Relations                     Media Relations
      Glenn A. Etherington                   Ed Bryson
      Chief Financial Officer                Public Relations Manager
      (972) 403-8300                         (972) 543-5117
      getherington@metasolv.com              ebryson@metasolv.com
 
 

SOURCE MetaSolv, Inc.
    PLANO, Texas, April 18 /PRNewswire/ -- MetaSolv, Inc. (Nasdaq:   MSLV), the
 leading provider of order management and service fulfillment solutions for
 next generation communications providers, today announced record revenues and
 net income for its first quarter ended March 31, 2001.
     Revenues for the first quarter rose 49 percent to $38.8 million from
 $26.0 million for the first quarter of 2000.  Net income for the quarter was
 $5.1 million, or $0.13 per diluted share, approximately double the
 $2.6 million, or $0.06 per diluted share, for the first quarter last year.
 The first quarter represents the fifth consecutive quarter in which MetaSolv's
 diluted earnings per share have grown at a triple-digit pace from the
 comparable prior-year quarter.
     Commenting on the announcement, Jim Janicki, CEO of MetaSolv, said, "We
 are pleased to report substantial profitable growth for the first quarter of
 2001, in spite of a difficult environment in the overall communications
 services market.  The Company's performance reflects the mission-critical
 nature of its best-in-class MetaSolv Solution(TM) operations support system
 ("OSS") software.  We help our customers become more competitive by cutting
 their time to market, improving productivity and increasing operating
 leverage.  These strengths are critical to our customers in their highly
 competitive markets."
     MetaSolv made significant progress in the first quarter on the further
 development of its international markets, a key strategic initiative for 2001.
 During the quarter, we announced the completion of implementation of the
 MetaSolv Solution by Amsterdam-based Novaxess, a leading provider of broadband
 communications services to small and medium-sized businesses, and by Brazilian
 communications service provider, Global Village Telecom, which has a service
 territory covering approximately 30% of Brazil.  In addition, we announced the
 implementation of the MetaSolv Solution for Radianz, a company formed by
 Reuters and Equant that operates the world's largest IP network for the global
 financial services industry.  MetaSolv believes that its international
 business is well positioned for growth during the coming quarters as a result
 of significant demand for its newest release, MetaSolv Solution 5.0.  This
 release, which was launched on April 11, will enable both MetaSolv's
 international and domestic customers to expand and manage their communication
 services across multiple countries or globally.
     MetaSolv also continues to make progress on another key strategic
 initiative, offering our solution to the enterprise market.  In early
 discussions, potential enterprise customers have confirmed the need for
 communications management solutions such as MetaSolv to help reduce costs and
 more efficiently plan, procure, and manage their voice, high-speed data, and
 Internet-based services.  During the first quarter, the Company implemented
 the MetaSolv Solution in its own operations, demonstrating the value of the
 software in an enterprise environment.  Although MetaSolv does not expect
 material revenues from the enterprise market in 2001, it currently expects to
 begin working on enterprise implementations with several customers during the
 year.
     During the first quarter, MetaSolv increased the strength of its financial
 position, which has been continually enhanced since the Company's initial
 public offering in November 1999.  At the end of the latest quarter,
 MetaSolv's combined cash and marketable securities increased to $145.2 million
 from $114.8 million at the same time in 2000, and stockholders' equity grew to
 $153.2 million from $125.8 million.  The Company also continued to have no
 bank debt outstanding as of the end of the first quarter.
     Janicki concluded, "We have clearly seen the impact of the current
 difficult market on communications providers, particularly in the latter
 stages of the quarter.  We saw a number of customers defer or cancel
 purchases, resulting in our signing only three new customers during the first
 quarter, our lowest total in several years.  Nevertheless, we continue to see
 opportunities for growth in our existing markets, internationally and in the
 enterprise market.  MetaSolv is positioned to help these companies perform
 mission-critical operations faster, more accurately and less expensively.  As
 the industry leader, and with the managerial and financial resources in hand
 to continue the implementation of our strategic initiatives, we are confident
 of MetaSolv's prospects for long-term growth."
 
     Conference call notice
     MetaSolv will hold a conference call to discuss this press release today
 at 5:00 p.m. Eastern time.  Investors may listen to the conference call over
 the Internet by going to www.metasolv.com and clicking Investor Relations, or
 by going to the following web sites -- www.streetevents.com and www.vcall.com.
 Please visit the website at least fifteen minutes early to register, download,
 and install any necessary audio software.  For those who cannot listen to the
 live broadcast, a replay will be available shortly after the call and through
 the end of business on April 25, 2001, at (719) 457-0820 (confirmation number:
 710097) and at the web sites referenced above.
     MetaSolv is a registered trademark; the MetaSolv logo and MetaSolv
 Solution are trademarks of Metasolv Software, Inc.
 
     About MetaSolv, Inc.
     MetaSolv, Inc., headquartered in Plano, Texas, was founded in 1992.
 MetaSolv, through its wholly owned subsidiary, MetaSolv Software, Inc., is the
 leading provider of order management and service fulfillment solutions to next
 generation communications providers.  The MetaSolv Solution(TM) integrates a
 communications provider's business from network planning and engineering to
 operations and customer care.  With the MetaSolv Solution, communications
 providers can quickly and efficiently respond to market demand, optimize their
 service fulfillment processes, and build stronger relationships with their
 customers.  MetaSolv has regional offices in Atlanta, Chicago, Denver, McLean,
 VA and London.  MetaSolv's web site is www.metasolv.com.  Contact MetaSolv
 directly at (800) 747-0791.
     This press release contains forward-looking statements that are based upon
 current information and expectations, and that involve a number of risks and
 uncertainties.  Actual results could differ materially from MetaSolv's current
 expectations.  MetaSolv assumes no obligation to update any such
 forward-looking statement.  Using the "safe harbor" provisions of the Private
 Securities Litigation Reform Act of 1995, MetaSolv cautions you that these
 statements may be affected by the important factors described in any MetaSolv
 documents or reports filed from time to time with the Securities and Exchange
 Commission, including the Company's Annual Report on Form 10-K for 2000, and
 subsequent filings, as well as by other factors, including: the Company's
 limited operating history and variance of quarterly operating results; its
 reliance on sales of MetaSolv Solution software; its need to expand sales and
 distribution capabilities; its need to expand its software with new
 functionality and to new customer markets; its ability to attract and retain
 qualified employees; its continued use of strategic relationships to implement
 and sell its products; its ability to manage growth; its planned international
 operations; its ability to meet customer expectations; the quality of its
 software delivered; competition; growth of the internet and internet-based
 services; consolidation within the telecommunications industry; and
 limitations on the ability of customers to obtain adequate financing.
 
                                 METASOLV, INC.
                         Summary Financial Information
                     (In thousands, except per share data)
 
                                                         Three Months Ended
                                                              March 31,
                                                        2001           2000
     Revenues                                         $38,806        $25,990
 
     Income from operations                            $6,307         $2,679
     Net income                                        $5,115         $2,579
     Earnings per share:
     Basic                                              $0.14          $0.07
     Diluted                                            $0.13          $0.06
     Weighted average shares outstanding:
     Basic                                             35,940         34,884
     Diluted                                           39,689         40,544
 
 
                                 METASOLV, INC.
                              Statements of Income
                     (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
     Revenues:
      License                                         $24,930        $13,193
      Service                                          13,876         12,797
       Total revenues                                  38,806         25,990
 
     Cost of revenues:
      License                                           2,998            547
      Service                                           7,324          7,528
       Total cost of revenues                          10,322          8,075
 
 
     Gross profit                                      28,484         17,915
 
     Operating expenses:
      Research and development                          8,317          7,047
      Sales and marketing                               7,991          4,647
      General and administrative                        5,869          3,542
       Total operating expenses                        22,177         15,236
 
     Income from operations                             6,307          2,679
     Interest and other income, net                     1,877          1,619
     Income before income taxes                         8,184          4,298
     Income tax expense                                 3,069          1,719
     Net income                                        $5,115         $2,579
     Earnings per share:
      Basic                                             $0.14          $0.07
      Diluted                                           $0.13          $0.06
     Weighted average shares outstanding:
      Basic                                            35,940         34,884
      Diluted                                          39,689         40,544
 
 
                                 METASOLV, INC.
                            Condensed Balance Sheets
                                 (In thousands)
 
                                                    March 31,      December 31,
                                                      2001              2000
         Assets
     Current assets:
      Cash and cash equivalents                      $111,429        $93,695
      Marketable securities                            33,774         48,843
      Trade accounts receivable, less
       allowance for doubtful
       accounts of $6,223 in 2001
       and $5,200 in 2000                              30,830         23,994
      Unbilled receivables                              1,187          1,510
      Prepaid expenses                                  4,753          6,090
      Other current assets                              4,628          4,921
       Total current assets                           186,601        179,053
 
     Property, plant and equipment, net                15,456         14,491
     Equity investments                                 4,000          4,000
     Other assets                                         100             84
       Total assets                                  $206,157       $197,628
 
         Liabilities and Stockholders' Equity
     Current liabilities:
      Accounts payable                                 $6,805         $7,910
      Accrued expenses                                 19,458         16,468
      Deferred revenue                                 26,415         24,025
       Total current liabilities                       52,678         48,403
 
     Deferred income taxes                                308            275
 
     Stockholders' equity:
      Common stock                                        180            180
      Additional paid-in capital                      129,634        130,522
      Deferred compensation                              (371)          (300)
      Unrealized gains on marketable
       securities                                          65            ---
      Retained earnings                                23,663         18,548
       Total stockholders' equity                     153,171        148,950
       Total liabilities and
        stockholders' equity                         $206,157       $197,628
 
      Contacts:
      Investor Relations                     Media Relations
      Glenn A. Etherington                   Ed Bryson
      Chief Financial Officer                Public Relations Manager
      (972) 403-8300                         (972) 543-5117
      getherington@metasolv.com              ebryson@metasolv.com
 
 SOURCE  MetaSolv, Inc.