Matrikon Inc. (TSX:MTK), a leading provider of solutions for industrial intelligence, today reported financial results for the fourth quarter and fiscal year ended August 31, 2008. Matrikon's president & CEO Nizar J. Somji commented on the quarter: "Our fourth quarter results cap off a record-breaking year for us."
Highlights
- Revenue of $20.16 million in Q4-07; $80.03 million for FY-08
- Net income of $2.58 million in Q4-08; $9.10 million for FY-08
- Gross margin of 59% in Q4-08; 56% for FY-08
- Cash generated from operating activities was $4.27 million in Q4-08; $14.15 million for FY-08
For FY-08, Matrikon posted revenue of $80.03 million, an increase of 9% from FY-07. Net income increased to $9.10 million from a loss of $220 thousand in FY-07. Earnings per share for FY-08 were $0.30, increasing from a loss of $0.01 per share in FY-07.
Fourth quarter revenue was $20.16 million, up from $18.44 million in Q4-07, and net income was $2.58 million, up from a loss of $245 thousand in Q4-07. Earnings per share in Q4-08 were $0.09, compared to a loss of $0.01 per share in Q4 of 2007.
"Our fiscal year 2008 results are a strong validation of our strategy for building a stronger company. We made a dramatic return to profitability in FY-08 while also growing the business and I'm confident that the infrastructure we now have in place will allow us maximize our future growth potential," Somji continued.
Quarter Highlights:
- We paid $10.10 million in dividends on our common shares ($0.30 special and $0.03 regular dividends), which contributed to a $4.84 million decrease in cash and cash equivalents from Q3-08.
- Accounts payable and accrued liabilities increased due to increased commissions and bonuses payable based on strong results throughout the year.
- Our Products strategy continues to bear results, with software license and support revenue comprising 37% of total revenue in the quarter.
- We achieved record software license revenue of $5.00 million, a 9% increase over the previous record set in Q3-08.
- Support revenue was also a record at $2.47 million, a 9% increase over the prior record set in Q3-08.
- Sales by Reseller Partners were exceptionally strong, with 42% of the total annual sales by Reseller Partners coming in Q4-08.
- Strong Product revenue contributed to record quarterly gross margin of 59% and record net income of $2.58 million.
- On the Solutions side, at $11.50 million, consulting revenue was relatively flat compared to Q3-08, while utilization was down 6% to 71% versus 77% as many consultants took vacation over the summer months.
- We continue to gain traction with our industry applications and are rolling Matrikon Mobile Equipment Monitor out to additional mine sites. We also sold our first Matrikon Mine to Port in the quarter and implementation is underway.
- We sold our SCADANet business to CriticalControl Solutions Corp. for net proceeds of $0.67 million.
- Q4-08 G&A expense increased by 23% compared to Q3-08 as a result of increases in legal and professional fees and start-up costs related to Matrikon SoftDEL India Private Ltd.
Outlook
We remain committed to our strategy and will continue to build upon it in 2009. The objectives we will report on throughout the year are as follows:
- Increase employee retention by 20%
- Increase sales of off-the-shelf products
- Increase sales through our Reseller Partner Program
- Release Intuition and begin to build Matrikon Suite products
based on it
- Grow revenue from licenses & support to 33 - 35% of total revenue
- Release one significant new product upgrade each quarter
- Continue to grow industry solutions, with:
- Six new corporate clients for Matrikon Well Performance Monitor
- Two new corporate clients for Matrikon Mobile Equipment Monitor
- Two corporate clients for Matrikon Mine to Port
- Two new oil sands clients for Matrikon Production Management -- www.cnxmarketlink.com
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