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Manufacturing orders, contracts, financial reports
News Release from: Siemens PLM Software
Edited by the Manufacturingtalk Editorial
Team on 16 November 2005
UGS reports 73.8% revenue increase
UGS Corp reports a year-over-year 73.8% revenue increase including acquisitions, or 45.9% without acquisitions in its financial results for the third quarter ended September 30, 2005.
UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced financial results for the third quarter ended September 30, 2005 In the third quarter, UGS marked its ninth consecutive quarter of year-over-year total revenue growth and expanded its market leadership position in the high-growth collaborative Product Development Management (cPDM) space with a year-over-year 73.8% revenue increase including acquisitions, or 45.9% without acquisitions
This article was originally published on Manufacturingtalk on 2 Apr 2008 at 8.00am (UK)
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UGS' performance was driven by continued growth in its two key product segments (cPDM and CAx) and growth in each of its geographic regions.
Third quarter financial highlights include: * Total revenue increased to US$290.2 million, or 23.4% growth over the same period a year earlier.
That includes US$89.8 million in license software revenue, or a 24.9% year-over-year increase.
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The acquisition of Tecnomatix Technologies added US$20.5 million in overall revenue and US$7.5 million in license software revenue.
The company saw an increase in total revenue in each geographic region compared to the same period in 2004.
* Reported operating income was US$19.3 million, a 153.9% year-over-year increase, and includes the impact of acquisition-related intangible amortization costs of US$39.2 million.
* EBITDA (defined below) was US$63.8 million, or 23.6% growth over the same period a year earlier.
This was in line with company expectations and includes its decision to increase the investment in research and development, selling and marketing, and the increase in costs associated with being an independent company.
* In the figures presented above, the company has not made adjustments for the impact of deferred revenues written off in connection with the acquisition of the company and acquisitions by the company.
These write-offs had the effect of reducing third quarter 2005 revenues and earnings by US$2.2 million and third quarter 2004 revenues and earnings by US$16.5 million.
"We remain focused on growing our business through enabling global innovation networks for our customers.
Following the quarter where we marked our one-year anniversary of operating independently, we continue to see a steady stream of cPDM growth and enterprise contracts," said Tony Affuso, chairman, CEO and president of UGS.
"Our customer focus and our leadership position in the PLM market is driving our continued growth and fueling the customer innovation announcements that highlight our success in creating value through global innovation networks." Customer Innovation Leadership Announcements - UGS issued two announcements highlighting key milestones from the third quarter: * In a separate announcement, UGS announced that MTU Aero Engines , Germany's leading aircraft engine manufacturer, standardised on UGS for digital product development as part of EUR1 million (US$1.2 million) contract extension.
Under the new extension MTU Aero Engines will add another 85 seats of NX software, replacing the existing computer-aided design (CAD) software.
* In a separate announcement today, UGS announced that Renishaw, the world's leading supplier of metrology and spectroscopy products, selected UGS Tecnomatix' solutions to streamline its new product introduction (NPI) processes.
The company will use Tecnomatix digital manufacturing software to better manage its manufacturing systems by shortening the design cycle, removing wasteful processes and reducing the number of file formats required to produce new products.
Additional Customer Innovation Leadership Announcements - in the third quarter UGS announced major customer innovation leadership contracts (the company expects to realise revenue from the contracts highlighted below over multiple quarters) and executed key product launches.
Contract announcement highlights: * Announced that it extended its PLM agreement with General Motors (GM) and that GM will leverage the Open Manufacturing Backbone (OMB), UGS' globally-scalable digital manufacturing technology platform, to enhance collaboration at the plant floor level.
* Announced that Patria Vehicles Oy, part of the Patria Group, standardised on UGS' NX and Teamcenter PLM software.
The agreement reinforces UGS' position as leading PLM provider in Finland and creates a framework to deploy NX and Teamcenter for armored wheeled vehicles, Patria Vehicles' flagship product.
NX replaced Patria Vehicles' existing CAD solutions.
* Announced that Pilatus Aircraft ., the world's leading manufacturer of single-engine turboprop aircraft, awarded UGS a $1 million expansion contract as the company continued its standardisation on UGS' Teamcenter for PLM.
* Announced that leading Swedish contract manufacturer, Partnertech, signed a three-year extension for UGS digital manufacturing solutions.
Product announcement highlights: * Launched Version 4 of NX, the latest release of the company's comprehensive software solution for digital product development.
Building on its industry-leading ability to capture knowledge and simulate performance throughout the product development process, NX 4 includes hundreds of customer-driven enhancements that improve manufacturers' ability to differentiate their products and to transform their process of innovation.
New features address product styling, design, simulation and manufacturing, along with data migration tools that benefit I-deas software users transitioning to NX.
Through the launch of UGS' new mid-market product portfolio - UGS Velocity Series - UGS became the first company to bring enterprise PLM to the mid-market.
UGS Velocity Series includes the industry's first comprehensive, preconfigured portfolio of digital product design, analysis and data management software.
New products within UGS Velocity Series include: * Teamcenter Express, a breakthrough mid-market solution for cPDM that applies pre-configured industry best practices to provide ease of installation, setup, ease of use and support, for a lower total cost of ownership.
It manages the complete design process for engineering organisations currently experiencing a data explosion brought on by rapidly expanding product complexity.
* Solid Edge Version 18, which includes integrated cPDM technology and delivers hundreds of enhancements, including new analysis and data management features.
* FEMAP 9.1, the latest version of the world's most popular PC-based computer-aided engineering application - a robust pre- and post-processing finite element modeling application.
FEMAP 9.1 delivers in-depth finite element modeling for both full time experts and occasional users.
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