Innovation and collaborative, synchronized program management for new programs
FOR RELEASE Friday, July 23, 2004
PLANO, Texas– UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced financial results for the second quarter ended June 30, 2004.
Financial highlights from the second quarter include:
“UGS continues to provide strong value to our world-class client base, which is enabling us to excel by exceeding market growth rates in a growing market,” said Tony Affuso, chairman, CEO and president of UGS. “In the second quarter, we continued to leverage our strategy and leadership position in the PLM market globally by winning key contracts, developing and introducing new products, further integrating our product line and driving major initiatives to fruition. We’re off to a strong start in our new world.”
In addition, for the last six months ending June 30, 2004, UGS reported revenue of US$470.9 million, or 13 percent growth as compared to the same period a year earlier; and EBITDA of US$109.3 million, or 18 percent growth as compared to the same period a year earlier.
The company said its performance reflects continuing strong demand for its software, including Teamcenter® digital product data management and collaboration software and NX knowledge-driven digital product development software.
UGS announced on May 27 the closing of its acquisition by a group of private equity firms, Bain Capital, Silver Lake Partners and Warburg Pincus. The firms acquired UGS from EDS for US$2.05 billion in cash. The transaction represents the largest private equity investment ever made in a technology company.
Among other business highlights from the second quarter, UGS:
“The second quarter was a landmark quarter for UGS in several ways, most notably with our launch as an independent software business in partnership with our new sponsors, and one of significant strategic achievement across the board,” Affuso said. “We are extremely enthusiastic about our prospects for continued long-term growth as more leading organizations realize the value of PLM as a true enterprise strategy.”
UGSuniquely provides best-in-class client value by delivering the world’s leading PLM software and services solutions that promote standardization and openness and enable enterprises to work faster and be more agile by transforming their process of innovation throughout the entire product lifecycle. UGS provides these software and services solutions in the areas of digital product data management and collaboration; digital product development; digital product design; and digital manufacturing.
The global market for PLM software and services is expected to grow by a compound annual growth rate of 8 percent through 2007 to more than US$9.2 billion, according to Daratech. Through 2007, Daratech expects the product data management and collaboration segment of the PLM market, which UGS leads on the strength of its Teamcenter portfolio, to grow 16 percent, compounded annually.
UGS is a leading global provider of product lifecycle management (PLM) software and services with more than 3 million licensed seats and 42,000 clients worldwide. Headquartered in Plano, Texas, the company promotes openness and standardization and works collaboratively with its clients in creating enterprise solutions enabling them to transform their process of innovation and thus begin to capture the value of PLM.
Note: UGS, Ideas, Parasolid, Solid Edge and Teamcenter are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.
The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond UGS’ control, which could cause actual results to differ materially from such statements. The company has included a discussion of pertinent risk factors in the final offering memorandum relating to our 10% Senior Subordinated Notes, a copy of which is available from the company. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
UGS will broadcast a conference call on its second quarter 2004 earnings with securities analysts live on the Internet at 10:00 a.m. Central Daylight Time, Monday, July 26. A ccess the call and view related financial information.
Participation will be listen-only mode.
You will need Windows MediaPlayer or Real Player to listen to the call. If you are unable to listen during the live Webcast, the call will be archived for 30 days at https://www.mymeetings.com/nc/join.php?i=PH5538886&p=UGS&t=r.