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UGS reports third quarter results

Edited by the Manufacturingtalk editorial team Nov 17, 2006

PLM industry leader marks solid progress on strategic plan

UGS, a global provider of product lifecycle management (PLM) software and services, has announced third quarter 2006 results.

Third quarter financial highlights include:.

* EBITDA was US$69.1 million, or an 8.3 percent growth over the same period a year earlier.

Net income (loss) for the third quarter was US$(7.4) million.

* Operating income was US$15.9 million and includes the impact of acquisition-related intangible amortisation costs of US$38.5 million.

* Operating income in the same period a year earlier was US$19.3 million and included acquisition-related amortisation costs of US$39.2 million.

* Total revenue increased to US$295.5 million, 1.8 percent growth over the same period a year earlier.

* Software revenue increased to US$223.1 million (including license and maintenance revenues), or 1.6 percent growth as compared to the third quarter 2005.

* Revenue amounts are not adjusted for the impact of deferred revenues written off in connection with acquisitions - These write-offs had the effect of reducing third quarter 2006 revenues by US$0.3 million and 2005 revenues by US$2.2 million.

"We've continued to be successful at working our strategic plan while still focusing on expanding our EBITDA and cash flow, and retooling our sales engine.

Our continued product excellence and focus on customer success earned us contracts or additional business in the quarter with such companies as Boeing, DaimlerChrysler, Unilever, Visteon, Bosch Siemens, Northrop Grumman Ship Systems, Bayer Healthcare and the Jet Propulsion Lab," said Tony Affuso, chairman, CEO and president of UGS.

"These contracts reflect the confidence we are receiving across the board from the market, as highlighted most notably by our ranking in the leaders quadrant of the new Gartner Magic Quadrant.

"As always, we continue to focus on customer success, and as a result our retention rate is higher than ever and our maintenance revenue continues to grow solidly".