FOR RELEASE Friday, November 12, 2004
PLANO, Texas– UGS, a leading global provider of product lifecycle management (PLM) software and services, today announced financial results for the third quarter ended September 30, 2004.
Pro forma financial highlights from the third quarter include:
“UGS’ relentless focus on client value continues to fuel our ability to exceed market growth rates in the exciting PLM market. We continue to grow not only in our core traditional markets, but in newer vertical segments as well, such as consumer packaged goods and retail and apparel,” said Tony Affuso, chairman, CEO and president of UGS. “We are also seeing growth in all regions around the world, particularly in Europe. The emerging status of PLM as a transformational enterprise strategy is taking hold on a global basis, and UGS is leading the way.”
cPDm Strength Key to Year-to-Date Performance
UGS’ reported year-to-date revenues through the third quarter total US$724.7 million, or 15 percent growth as compared to the same period a year earlier. In addition, the company has reported year-to-date EBITDA of US$174.9 million, or 26 percent growth as compared to the same period a year earlier.
All of the above figures exclude certain GAAP purchase accounting adjustments relating to the UGS acquisition. These include amortization and depreciation expenses of US$45.3 million and the reduction to revenues of US$26.9 million as a result of writing off deferred revenue.
UGS also reported year-to-date overall software revenue growth of 15 percent. A key driver of UGS’ year-to-date software growth is the company’s continuing strong leadership in the cPDm segment of the PLM market – the market’s highest-growth space. UGS’ Teamcenter® portfolio, the company’s cPDm solution, is the world’s most widely used PLM solution and serves as the enterprise collaboration backbone for companies seeking a comprehensive integrated digital lifecycle environment.
Among companies with more than 1,000 PDM seats, 85 percent are using Teamcenter®. Eight of the top 10 aerospace contractors have standardized on Teamcenter® as have 9 out of the top 10 automotive OEMs that have selected a PDM partner. There are nearly 2 million seats of Teamcenter® in operation around the world – more than all of UGS’ competitors combined.
Exceeding future growth projections by Daratech, year-to-date, UGS has reported cPDm total revenue growth of 19 percent, with cPDm software revenue growth of 21 percent. Through 2008, Daratech expects the cPDm segment of the PLM market to grow 12 percent, compounded annually.
“UGS is the undisputed market leader for cPDm and this is how leadership in the PLM market will be defined moving forward. Our company has developed the most comprehensive suite of PLM offerings with an emphasis on the collaboration and product data management side of the market, and that strategy continues to bear fruit with the ongoing success of our flagship Teamcenter portfolio,” Affuso said. “Teamcenter ultimately helps companies transform the process of PLM by powering innovation with knowledge. That’s a compelling value proposition that’s unique to UGS, and that our clients increasingly are turning to us for.”
Third Quarter Highlights
UGS is a leading global provider of product lifecycle management (PLM) software and services with more than 3.3 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.
The statements in this news release that are not historical statements 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 discussion of risk factors 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 third quarter 2004 earnings with securities analysts live on the Internet at 10:30 a.m. Central time, Friday, Nov. 12, 2004. See below for access information. Participation will be listen-only mode at:https://www.mymeetings.com; conference number: 8903800; pass code: UGS