EPS More Than Doubles on Nearly Five-Fold Increase in Operating Income
TROY, N.Y.--MapInfo Corporation (Nasdaq: MAPS) today reported earnings per share of $0.08 for the third quarter of fiscal 2004 ended June 30, 2004 compared to the prior year's earnings per share of $0.03, representing a 166 percent increase on 14 percent higher revenue.
Financial highlights for the quarter include:
-- Balanced revenues across vertical markets: retail accounting for 23 percent, telecommunications 21 percent, public sector 18 percent and financial services, including insurance representing 8 percent of total revenue.
-- Operating margin increased to 10.5 percent, representing the third consecutive quarter of sequential improvement. For the second quarter of fiscal 2004, the operating margin was 9.1 percent and for the first quarter the operating margin was 3.9 percent. The third quarter operating margin also improved 800 basis points over the prior year operating margin of 2.5 percent.
-- Cash from operations grew by $5.0 million during the quarter. As of June 30, 2004, cash and investments were $83.5 million, including the $44.2 million of net cash raised from the company's follow-on offering completed in April 2004.
-- Total deferred revenues stood at $14.0 million at the end of the quarter.
Revenues for the third quarter of fiscal 2004 were $32.1 million compared to $28.3 million for the prior year third quarter, representing a 14 percent increase. The company reported a net income of $1.6 million, or $0.08 per share, compared to $480,000, or $0.03 per share, in the third quarter of fiscal 2003.
Earnings per share for the third quarter of fiscal 2004 is calculated on the basis of 20.7 million weighted average diluted shares outstanding, including the 4.3 million shares issued in the follow-on offering. Weighted average diluted shares outstanding for the third quarter of fiscal 2003 was 15.6 million.
Revenues for the nine months ended June 30, 2004 increased 21 percent to $92.2 million over the $76.2 million reported for the same period last year. Net income for the nine months ended June 30, 2004 was $3.3 million, or $0.19 per share, compared to a net loss of $2.2 million, or $0.14 per share, in the same period last year, representing a $0.33 improvement over the prior year. Earnings per share for the first nine months of fiscal 2004 is calculated on the basis of 17.8 million weighted average diluted shares outstanding, including the 4.3 million shares issued in the follow-on offering. Weighted average diluted shares outstanding for the same period of fiscal 2003 was 15.3 million.
"Our strong third quarter revenue and operating margin reflects increased demand for our solutions across our key vertical markets and favorable product mix, which in turn yielded an operating margin over 10 percent -- one quarter ahead of expectations," said Mark Cattini, president and chief executive officer. "In addition, MapInfo continued to produce both top- and bottom-line growth: the third quarter marked the sixth consecutive quarter of year-over-year revenue increases and the fifth consecutive quarter of year-over-year earnings per share gains. These results provide solid evidence of MapInfo's consistent execution of two key strategic objectives in fiscal 2004: to expand the company's presence in target vertical markets and to broaden usage of the company's solutions through the adoption of Envinsa(TM), our enterprise location platform."
Concluded Cattini, "We expect to continue to see growing demand for location intelligence solutions, which deliver critical value to business decision makers in an array of vertical markets. Moreover, we believe our revenue platform, with its mix of software, data and analytical services, diverse deal sizes and contracted components, is properly aligned with current purchasing behavior of our customers. This revenue model, along with our tightly controlled cost structure, enables MapInfo to leverage revenue growth for continued improvement in earnings per share performance."
Guidance
Based on the year-to-date performance, MapInfo expects full fiscal year revenue of approximately $125 million, the upper end of the company's previous guidance range of $123 to $125 million; operating margin for the full year of between eight and nine percent; and, diluted earnings per share between $0.27 and $0.28 per share. Assuming demand for the company's solutions remains strong, fourth quarter revenue is anticipated to be higher than third quarter's level yielding an operating margin of between 10 percent and 11 percent and earnings per share between $0.08 and $0.09.
Conference Call
The MapInfo Third Fiscal Quarter Earnings www.mapinfo.com/investors.
About MapInfo
MapInfo Corporation is a global software company that integrates software, data and services to help customers realize greater value from www.mapinfo.com.
Of Note
Statements in this press release regarding MapInfo's future financial performance, including statements regarding future revenue and earnings per share, statements regarding the broadening of usage of MapInfo's products in targeted vertical markets, statements regarding future trends in IT spending, statements regarding the prospects of favorable business conditions, and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. MapInfo's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in the Company's quarterly report on Form 10-Q under the section "Risk Factors" as well as other documents that may be filed by MapInfo from time to time with the Securities and Exchange Commission. Forward-looking statements can be identified by forward-looking words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. MapInfo assumes no obligations to update the information included in this press release.
-tables to follow-
MapInfo Corporation and Subsidiaries Income Statements (in thousands, except per share data) (unaudited)
Three Months Nine Months Ended June 30, Ended June 30, ----------------- ----------------- 2004 2003 2004 2003 -------- -------- -------- --------
Operating expenses: Research and development 5,418 5,243 15,874 15,320 Selling and marketing 10,771 10,080 31,329 30,406 General and administrative 3,782 3,512 11,424 11,789 -------- -------- -------- -------- Total operating expenses 19,971 18,835 58,627 57,515 -------- -------- -------- -------- Operating income (loss) 3,382 696 7,349 (3,975) Interest income 266 118 476 371 Interest expense (294) (293) (875) (701) Other income (expense), net (682) 253 (1,427) 835 -------- -------- -------- -------- Interest and other income (expense), net (710) 78 (1,826) 505 -------- -------- -------- -------- Income (loss) before income taxes 2,672 774 5,523 (3,470) Provisions for (benefit from) income taxes 1,068 294 2,209 (1,319) -------- -------- -------- -------- Net income (loss) $1,604 $480 $3,314 $(2,151) ======== ======== ======== ========
Earnings (loss) per share $0.08 $0.03 $0.19 $(0.14)
Average shares outstanding 20,742 15,551 17,775 15,256
MapInfo Corporation and Subsidiaries Balance Sheets (in thousands)
June September 30, 30, 2004 2003 ----------- --------- ASSETS (unaudited) Current Assets: Cash and investments $83,487 $34,829 Receivables 24,317 23,338 Inventories 332 400 Other current assets 3,948 3,707 ----------- --------- Total current assets 112,084 62,274 Property and equipment - net 25,563 26,682 Product development costs - net 501 255 Deferred income taxes 14,826 14,888 Goodwill - net 27,487 21,343 Other intangible assets - net 2,742 3,526 Investments and other assets 2,096 4,004 ----------- --------- Total assets $185,299 $132,972 =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $1,307 $1,393 Accounts payable and accrued expenses 23,581 21,579 Deferred revenue 13,740 13,009 ----------- --------- Total current liabilities 38,628 35,981 Long-term debt 15,917 16,895 Deferred revenue, long-term 310 278 Other long-term liabilities - 532 ----------- --------- Total liabilities 54,855 53,686 ----------- ---------
Stockholders' Equity: Common stock 41 31 Paid-in capital 99,645 53,105 Retained earnings 30,758 26,150 ----------- --------- Total stockholders' equity 130,444 79,286 ----------- --------- Total liabilities and stockholders' equity $185,299 $132,972 =========== =========
Contacts MapInfo Corporation Wayne McDougall or Angela Girard, 518-285-6000
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or Investors: Lippert/Heilshorn & Associates John Heilshorn/Jody Burfening, 212-838-3777
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or Media: Schwartz Communications Carol McGarry/Lauren Arnold, 781-684-0770
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