MRO Software Reports Record Second Quarter Revenues

Company Posts Profit

Total Revenues for the Quarter Grow to $45.7 Million

MAXIMO(R) Software License Revenue Increases 33% Year Over Year



Apr 24, 2001, 01:00 ET from MRO Software, Inc.

    BEDFORD, Mass., April 24 /PRNewswire Interactive News Release/ --
 MRO Software (Nasdaq:   MROI), the leading provider of solutions for maintenance
 optimization, industrial supply chain planning and supplier enablement, today
 announced record revenues for the Company's second quarter ended March 31,
 2001.
     Total revenues for the quarter grew to $45.7 million compared with $41.6
 million for the second quarter of the prior year, an increase of 10%.  Pro
 forma net income for the second quarter was slightly above break-even or $0.00
 per diluted share, compared with income of $3.5 million or $0.15 per diluted
 share for the comparable quarter.  Pro forma net income is adjusted for the
 pre-tax effects of amortization of goodwill (see Schedule A).  The Company
 reported a net loss for the second quarter of $3.6 million or $0.16 per share
 after inclusion of amortization of goodwill, compared with net income of $2.4
 million or $0.10 per diluted share for the comparable quarter last year.
 
     Business Segments
     Total revenues for the demand-side business segment, which include
 revenues from the Company's MAXIMO product line, were $41.1 million, up from
 $33.4 million for the comparable quarter, an increase of 23%.  Software
 license revenue for this business segment was $15.4 million, up 23%
 sequentially and 33% from the comparable quarter last year.
     Total revenues for the supply-side business segment, which include
 revenues from the Company's MRO.COM suite of hosted solutions, were $4.6
 million, up from $4.4 million in the previous quarter and down from $8.2
 million for the comparable quarter, reflecting in part the Company's shift to
 an ASP subscription model.
     The balance sheet for the period ended March 31, 2001 contained $36.9
 million in cash and marketable securities and no long-term debt.  Deferred
 revenue increased to $22.2 million, and days sales outstanding improved from
 93 to 92 days, meeting the Company's internal target.
     "I am very pleased with the solid performance of our business this
 quarter," commented Chip Drapeau, president and CEO, MRO Software.  "Our
 solutions are providing concrete value to asset intensive companies and their
 suppliers.  On the MAXIMO side, we saw strong adoption of our MAXIMO industry
 solutions in the utility, oil and gas and discrete manufacturing market
 sectors.  We are also starting to see traction in the aircraft maintenance
 market, as evidenced by this quarter's win at a major regional carrier.  On
 the supply-side, our next generation of hosted supplier enablement technology
 will quickly and affordably provide industrial distributors and manufacturers
 with an easy path to conduct business with their customers over the Internet.
 As a result of this progress, we remain on track to achieve our goals for the
 year."
     The Company will host a conference call with any and all interested
 persons to review its performance and discuss its prospects today at 4:30 pm,
 EST.  For domestic participants, the call-in number is (800) 932-9896.  For
 international participants, the call-in number is (706) 634-5804.  A recording
 of the entire call will be available at the Company's website for one week
 under "Investor Relations" at http://www.mro.com.  The recording may also be
 accessed via the domestic playback number of (800) 642-1687 or the
 international playback number of (706) 645-9291, using reservation number
 479666.
 
     About MRO Software, Inc.
     MRO Software, Inc. is the leading provider of solutions for maintenance
 optimization, industrial supply chain planning and supplier enablement.
 MAXIMO(R), the Company's demand-side product, is deployed at over 8,000
 businesses, government agencies, and other organizations to assist them in
 managing asset and resource productivity.  These capabilities, which include
 business rules with maintenance best practices, tight integration with various
 business systems, and the ability to effectively address both low cost and
 complex procurement needs, are critical success factors for plants and
 facilities whose overall competitiveness are tied to efficiencies and
 productivity that can be realized across the entire industrial supply chain.
     The Company complements its MAXIMO work and materials management software
 with its MRO.COM supply-side suite of hosted solutions that provide enabling
 B2B technology and content services to manufacturers and distributors of
 industrial parts and equipment.
     Based in Bedford, Mass. with over 1,000 employees, MRO Software markets
 its products through a direct sales force with sales offices throughout the
 United States, Argentina, Australia, Brazil, Canada, China, France, Germany,
 Hong Kong, India, Italy, Mexico, the Netherlands, Singapore, Sweden, Thailand,
 and the United Kingdom, combined with a network of international distributors.
 All MRO Software news releases are available via the MRO Software Home Page at
 http://www.mro.com.
 
     MAXIMO is a registered trademark, and MRO.COM and MRO Software are
 trademarks, of MRO Software, Inc.
 
     This press release contains statements concerning future events and the
 Company's future performance, which are forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
 Securities Exchange Act of 1934.  The Company's actual results could differ
 materially from those set forth in the forward-looking statements. Factors
 which might cause such differences include, without limitation: a possible
 slowdown in IT spending and other adverse macroeconomic conditions, delays in
 product development and product roll-out, difficulties in gaining market
 acceptance of new products, intense competition and the presence of larger
 competitors in the market, difficulties in integrating and coordinating the
 Company's products and sales efforts with the products and sales efforts of
 its business partners, the emergence of competitive alliances among other
 companies, and those factors discussed in the Section entitled "Factors
 Affecting Future Performance" in our most recent Annual Report on Form 10-K as
 filed with the SEC.
 
 
                               MRO SOFTWARE, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
                                         Three Months Ended   Six Months Ended
                                              March 31,           March 31,
                                            2001     2000      2001     2000
     (in thousands)
             Revenues:
                 Software                  $15,510  $18,644   $28,107  $34,381
                 Support and services       30,232   22,977    59,103   45,226
                          Total revenues    45,742   41,621    87,210   79,607
 
             Cost of revenues:
                 Software                      685      845     1,151    1,504
                 Support and services       17,389   12,172    33,458   24,700
                          Total cost of
                           revenues         18,074   13,017    34,609   26,204
 
             Gross margin                   27,668   28,604    52,601   53,403
 
             Operating expenses:
                 Sales and marketing        17,215   15,824    35,014   29,688
                 Product development         6,703    5,522    12,263   10,017
                 General and
                  administrative             4,984    3,517     9,230    6,569
                 Amortizaton of goodwill
                  and other intangibles      3,589    1,132     7,225    1,301
                 Warrant expense                 -        -     3,287        -
                          Total operating
                           expenses         32,491   25,995    67,019   47,575
 
             (Loss)/income from operations  (4,823)   2,609   (14,418)   5,828
 
                 Interest income               409    1,382       858    2,319
                 Interest expense               16     (100)      (63)    (101)
                 Other income (expense),
                  net                         (399)    (183)     (124)    (377)
 
             (Loss)/income before income
              taxes                         (4,797)   3,708   (13,747)   7,669
 
             (Benefit)/provision for
              income taxes                  (1,228)   1,345    (2,483)   2,710
 
             Net (loss)/income             $(3,569)  $2,363  $(11,264)  $4,959
 
            Net (loss)/ income per share,
             basic                          $(0.16)   $0.11    $(0.51)   $0.23
            Net (loss)/income per share,
             diluted                        $(0.16)   $0.10    $(0.51)   $0.22
 
             Shares used to calculate net
              (loss)/ income per share
                  Basic                     22,109   21,671    22,096   21,543
                  Diluted                   22,109   23,276    22,096   22,991
 
 
                               MRO SOFTWARE, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                             PRO FORMA, AS ADJUSTED
                                   Schedule A
 
     (unaudited)
 
                                         Three Months Ended   Six Months Ended
                                              March 31,           March 31,
                                            2001     2000      2001     2000
     (in thousands, except per share data)
 
                 Net (loss)/income           $(3,569) $2,363  $(11,264) $4,959
 
                 Goodwill amortization         3,588   1,132     7,225   1,301
 
                 Warrant expense                   -       -     3,287       -
 
                  Net income/(loss), as
                   adjusted                      $19  $3,495     $(752) $6,260
 
                  Diluted net income/(loss)
                   per share, as               $0.00   $0.15    $(0.03)  $0.27
                    adjusted
 
                  Shares used to calculate
                   net income/(loss)
                     per share, diluted, as
                      adjusted                22,503  23,276    22,096  22,991
 
 
                               MRO SOFTWARE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (unaudited)
 
                                                         March 31, September 30
                                                            2001       2000
     (in thousands)               ASSETS
 
     Cash and cash equivalents                               $31,822   $31,584
     Marketable securities                                     4,089     4,241
     Accounts receivable, net                                 46,901    47,699
     Other current assets                                     14,455    13,245
              TOTAL CURRENT ASSETS                            97,267    96,769
 
     Marketable securities                                     1,000     1,059
     Property and equipment, net                              14,497    14,571
     Intangible assets, net                                   56,374    63,286
     Other assets                                              6,851     5,371
              TOTAL ASSETS                                  $175,989  $181,056
 
 
                     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities                                  $26,932      $27,596
     Deferred revenue                                      22,081       19,080
              TOTAL CURRENT LIABILITIES                    49,013       46,676
 
     Other long term liabilities                              243          188
              TOTAL LIABILITIES                            49,256       46,864
 
 
              STOCKHOLDERS' EQUITY                        126,733      134,192
 
                   TOTAL LIABILITIES & STOCKHOLDERS'
                    EQUITY                               $175,989     $181,056
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X33855772
 
 

SOURCE MRO Software, Inc.
    BEDFORD, Mass., April 24 /PRNewswire Interactive News Release/ --
 MRO Software (Nasdaq:   MROI), the leading provider of solutions for maintenance
 optimization, industrial supply chain planning and supplier enablement, today
 announced record revenues for the Company's second quarter ended March 31,
 2001.
     Total revenues for the quarter grew to $45.7 million compared with $41.6
 million for the second quarter of the prior year, an increase of 10%.  Pro
 forma net income for the second quarter was slightly above break-even or $0.00
 per diluted share, compared with income of $3.5 million or $0.15 per diluted
 share for the comparable quarter.  Pro forma net income is adjusted for the
 pre-tax effects of amortization of goodwill (see Schedule A).  The Company
 reported a net loss for the second quarter of $3.6 million or $0.16 per share
 after inclusion of amortization of goodwill, compared with net income of $2.4
 million or $0.10 per diluted share for the comparable quarter last year.
 
     Business Segments
     Total revenues for the demand-side business segment, which include
 revenues from the Company's MAXIMO product line, were $41.1 million, up from
 $33.4 million for the comparable quarter, an increase of 23%.  Software
 license revenue for this business segment was $15.4 million, up 23%
 sequentially and 33% from the comparable quarter last year.
     Total revenues for the supply-side business segment, which include
 revenues from the Company's MRO.COM suite of hosted solutions, were $4.6
 million, up from $4.4 million in the previous quarter and down from $8.2
 million for the comparable quarter, reflecting in part the Company's shift to
 an ASP subscription model.
     The balance sheet for the period ended March 31, 2001 contained $36.9
 million in cash and marketable securities and no long-term debt.  Deferred
 revenue increased to $22.2 million, and days sales outstanding improved from
 93 to 92 days, meeting the Company's internal target.
     "I am very pleased with the solid performance of our business this
 quarter," commented Chip Drapeau, president and CEO, MRO Software.  "Our
 solutions are providing concrete value to asset intensive companies and their
 suppliers.  On the MAXIMO side, we saw strong adoption of our MAXIMO industry
 solutions in the utility, oil and gas and discrete manufacturing market
 sectors.  We are also starting to see traction in the aircraft maintenance
 market, as evidenced by this quarter's win at a major regional carrier.  On
 the supply-side, our next generation of hosted supplier enablement technology
 will quickly and affordably provide industrial distributors and manufacturers
 with an easy path to conduct business with their customers over the Internet.
 As a result of this progress, we remain on track to achieve our goals for the
 year."
     The Company will host a conference call with any and all interested
 persons to review its performance and discuss its prospects today at 4:30 pm,
 EST.  For domestic participants, the call-in number is (800) 932-9896.  For
 international participants, the call-in number is (706) 634-5804.  A recording
 of the entire call will be available at the Company's website for one week
 under "Investor Relations" at http://www.mro.com.  The recording may also be
 accessed via the domestic playback number of (800) 642-1687 or the
 international playback number of (706) 645-9291, using reservation number
 479666.
 
     About MRO Software, Inc.
     MRO Software, Inc. is the leading provider of solutions for maintenance
 optimization, industrial supply chain planning and supplier enablement.
 MAXIMO(R), the Company's demand-side product, is deployed at over 8,000
 businesses, government agencies, and other organizations to assist them in
 managing asset and resource productivity.  These capabilities, which include
 business rules with maintenance best practices, tight integration with various
 business systems, and the ability to effectively address both low cost and
 complex procurement needs, are critical success factors for plants and
 facilities whose overall competitiveness are tied to efficiencies and
 productivity that can be realized across the entire industrial supply chain.
     The Company complements its MAXIMO work and materials management software
 with its MRO.COM supply-side suite of hosted solutions that provide enabling
 B2B technology and content services to manufacturers and distributors of
 industrial parts and equipment.
     Based in Bedford, Mass. with over 1,000 employees, MRO Software markets
 its products through a direct sales force with sales offices throughout the
 United States, Argentina, Australia, Brazil, Canada, China, France, Germany,
 Hong Kong, India, Italy, Mexico, the Netherlands, Singapore, Sweden, Thailand,
 and the United Kingdom, combined with a network of international distributors.
 All MRO Software news releases are available via the MRO Software Home Page at
 http://www.mro.com.
 
     MAXIMO is a registered trademark, and MRO.COM and MRO Software are
 trademarks, of MRO Software, Inc.
 
     This press release contains statements concerning future events and the
 Company's future performance, which are forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
 Securities Exchange Act of 1934.  The Company's actual results could differ
 materially from those set forth in the forward-looking statements. Factors
 which might cause such differences include, without limitation: a possible
 slowdown in IT spending and other adverse macroeconomic conditions, delays in
 product development and product roll-out, difficulties in gaining market
 acceptance of new products, intense competition and the presence of larger
 competitors in the market, difficulties in integrating and coordinating the
 Company's products and sales efforts with the products and sales efforts of
 its business partners, the emergence of competitive alliances among other
 companies, and those factors discussed in the Section entitled "Factors
 Affecting Future Performance" in our most recent Annual Report on Form 10-K as
 filed with the SEC.
 
 
                               MRO SOFTWARE, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
                                         Three Months Ended   Six Months Ended
                                              March 31,           March 31,
                                            2001     2000      2001     2000
     (in thousands)
             Revenues:
                 Software                  $15,510  $18,644   $28,107  $34,381
                 Support and services       30,232   22,977    59,103   45,226
                          Total revenues    45,742   41,621    87,210   79,607
 
             Cost of revenues:
                 Software                      685      845     1,151    1,504
                 Support and services       17,389   12,172    33,458   24,700
                          Total cost of
                           revenues         18,074   13,017    34,609   26,204
 
             Gross margin                   27,668   28,604    52,601   53,403
 
             Operating expenses:
                 Sales and marketing        17,215   15,824    35,014   29,688
                 Product development         6,703    5,522    12,263   10,017
                 General and
                  administrative             4,984    3,517     9,230    6,569
                 Amortizaton of goodwill
                  and other intangibles      3,589    1,132     7,225    1,301
                 Warrant expense                 -        -     3,287        -
                          Total operating
                           expenses         32,491   25,995    67,019   47,575
 
             (Loss)/income from operations  (4,823)   2,609   (14,418)   5,828
 
                 Interest income               409    1,382       858    2,319
                 Interest expense               16     (100)      (63)    (101)
                 Other income (expense),
                  net                         (399)    (183)     (124)    (377)
 
             (Loss)/income before income
              taxes                         (4,797)   3,708   (13,747)   7,669
 
             (Benefit)/provision for
              income taxes                  (1,228)   1,345    (2,483)   2,710
 
             Net (loss)/income             $(3,569)  $2,363  $(11,264)  $4,959
 
            Net (loss)/ income per share,
             basic                          $(0.16)   $0.11    $(0.51)   $0.23
            Net (loss)/income per share,
             diluted                        $(0.16)   $0.10    $(0.51)   $0.22
 
             Shares used to calculate net
              (loss)/ income per share
                  Basic                     22,109   21,671    22,096   21,543
                  Diluted                   22,109   23,276    22,096   22,991
 
 
                               MRO SOFTWARE, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                             PRO FORMA, AS ADJUSTED
                                   Schedule A
 
     (unaudited)
 
                                         Three Months Ended   Six Months Ended
                                              March 31,           March 31,
                                            2001     2000      2001     2000
     (in thousands, except per share data)
 
                 Net (loss)/income           $(3,569) $2,363  $(11,264) $4,959
 
                 Goodwill amortization         3,588   1,132     7,225   1,301
 
                 Warrant expense                   -       -     3,287       -
 
                  Net income/(loss), as
                   adjusted                      $19  $3,495     $(752) $6,260
 
                  Diluted net income/(loss)
                   per share, as               $0.00   $0.15    $(0.03)  $0.27
                    adjusted
 
                  Shares used to calculate
                   net income/(loss)
                     per share, diluted, as
                      adjusted                22,503  23,276    22,096  22,991
 
 
                               MRO SOFTWARE, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (unaudited)
 
                                                         March 31, September 30
                                                            2001       2000
     (in thousands)               ASSETS
 
     Cash and cash equivalents                               $31,822   $31,584
     Marketable securities                                     4,089     4,241
     Accounts receivable, net                                 46,901    47,699
     Other current assets                                     14,455    13,245
              TOTAL CURRENT ASSETS                            97,267    96,769
 
     Marketable securities                                     1,000     1,059
     Property and equipment, net                              14,497    14,571
     Intangible assets, net                                   56,374    63,286
     Other assets                                              6,851     5,371
              TOTAL ASSETS                                  $175,989  $181,056
 
 
                     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities                                  $26,932      $27,596
     Deferred revenue                                      22,081       19,080
              TOTAL CURRENT LIABILITIES                    49,013       46,676
 
     Other long term liabilities                              243          188
              TOTAL LIABILITIES                            49,256       46,864
 
 
              STOCKHOLDERS' EQUITY                        126,733      134,192
 
                   TOTAL LIABILITIES & STOCKHOLDERS'
                    EQUITY                               $175,989     $181,056
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X33855772
 
 SOURCE  MRO Software, Inc.

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