There Just Might Be Light at the End of the Tunnel for MSC.Software After All

excerpted from  

Full article is available for a fee

Randall S. Newton, August 20, 2007

The enterprise simulation and engineering analysis software vendor reported its second quarter 2007 results last week, turning a profit after several disappointing quarters. The company booked 69 new license deals over $100,000; of those, four were over $500,000 each.

Total revenue for the second fiscal quarter of 2007, ended June 30, was $60.7 million compared to $67.9 million for the second quarter last year. While down from Q2 of last year, it is up 5% sequentially in 2007.

Software revenue for the quarter totaled $23.0 million compared to $31.4 million year-over. Despite the lower year-over revenue numbers in software and services, net profit was $2.3 million, compared to a net loss of $6.4 million in the first quarter of 2007 and a net profit of $838,000 in the second quarter of 2006.

(Click for larger view)

By Region

 Total revenue in the Americas for the quarter was $17.2 million, down from $18.4 million year-over. Total revenue in EMEA for the quarter was $24.8 million, compared to $28.5 million year-ver. MSC notes that changes in the Euro increased EMEA revenue during the three and six months of 2007 by $1.7 million and $3.3 million when compared to 2006, respectively.

In Asia Pacific, revenue for the quarter totaled $18.8 million, down from $21.0 million year-over. Changes in the Japanese Yen decreased Asia Pacific revenue $1.0 million year-over.

MSC says the decreases in total revenue in all world geographies “generally reflects decreases in software revenue from the impacts of the transition to selling enterprise solutions to our major customers in certain key industries including automotive, aerospace and manufacturing industries, partially offset by growth in maintenance revenue.”

• Notes and Quotes from the CEO
• MSC Acquires pioneerSOLUTIONS
• Related articles in CADCAMNet

The full article is available for a fee at CADCAMNet.

All the week's articles
FREE!