TCNO Tecnomatix Technologies Ltd (MM)

Tecnomatix Announces Fourth Quarter and Full Year 2004 Results HERZLIA, Israel, Feb. 15 /PRNewswire-FirstCall/ -- Tecnomatix Technologies Ltd. (NASDAQ:TCNO), a leader in Manufacturing Process Management (MPM) solutions, announced today its financial results for the fourth quarter and full year ended December 31, 2004. Revenues for the fourth quarter of 2004 were $27.1 million, compared to $25.2 million for the fourth quarter of 2003. Operating income for the fourth quarter of 2004 was $1.5 million, compared to an operating loss of $4.4 million for the fourth quarter of 2003, which included special charges of $3.4 million associated with impairment of capitalized software development costs, impairment of software asset acquired from third party, restructuring costs and asset impairment, in-process research and development and acquisition- related costs. Net income for the fourth quarter of 2004 was $1.2 million or $0.10 per diluted share, compared to a net loss of $4.4 million or $0.37 per diluted share for the fourth quarter of 2003. For the full year 2004, revenues were $100.6 million, compared to revenues of $86.3 million for the full year 2003. Operating income for the full year 2004 was $3.1 million, compared to an operating loss of $10.7 million for the full year 2003, which included special charges of $9.3 million associated with impairment of capitalized software development costs, impairment of software asset acquired from third party, restructuring costs and asset impairment, in- process research and development and acquisition-related costs. Net income for the full year 2004 was $2.5 million or $0.20 per diluted share, compared to a net loss of $10.3 million or $0.94 per diluted share for the full year 2003. As of December 31, 2004, the Company had $39.2 million of cash and cash equivalents, short-term investments and long-term investments, compared to $38.7 million as of September 30, 2004. About Tecnomatix Technologies Tecnomatix Technologies Ltd. is a leader in Manufacturing Process Management (MPM). Today's leading global manufacturers are adopting MPM solutions to expand revenue potential and reduce costs by accelerating product introductions, shortening time to volume, and optimizing production execution. eMPower enables our customers to succeed with its collaborative, open platform and applications for defining, simulating, managing, and executing manufacturing processes across the extended enterprise. For more information on eMPower products and solutions for MPM, please visit http://www.tecnomatix.com/. This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. - Tables Follow - TECNOMATIX TECHNOLOGIES LTD. Condensed Consolidated Balance Sheets US $ in thousands 12/31/2004 12/31/2003 Current Assets: Cash and cash equivalents 15,505 9,232 Short-term investments 11,911 70 Receivables: Trade 25,653 29,190 Related parties 405 - Other and prepaid expenses 5,430 5,747 Total current assets 58,904 44,239 Non-current receivables 1,656 1,108 Long-term investments: Bonds 11,659 24,267 Zuken Tecnomatix 260 289 Total long-term investments 11,919 24,556 Property and equipment, net 4,490 5,628 Goodwill, net 25,654 25,829 Acquired intangibles, net 1,862 2,444 Other assets, net 13,784 13,296 Total assets 118,269 117,100 Current Liabilities: Current maturities of long-term loans 7,833 833 Payables: Trade 3,241 4,644 Defered Revenues 5,865 7,130 Other and accrued expenses 18,123 19,163 Total current liabilities 35,062 31,770 Accrued severance pay, net 1,089 1,095 Long-term liabilities: Accrued restructuring expense 1,690 1,716 Loan from a Bank 16,333 24,167 Total long-term liabilities 18,023 25,883 Shareholders' equity 64,095 58,352 Total liabilities and shareholders' equity 118,269 117,100 TECNOMATIX TECHNOLOGIES LTD. Consolidated Statements of Operations US $ in thousands, except per share data Twelve months ended Three months ended 12/31/2004 12/31/2003 12/31/2004 12/31/2003 Revenues Software license fees 40,503 36,033 10,809 11,894 Services 60,112 50,224 16,279 13,306 Total revenues 100,615 86,257 27,088 25,200 Costs and expenses Software license fees 8,111 10,114 2,213 3,860 Services 20,212 15,281 5,333 4,371 Amortization of acquired intangibles 582 136 144 113 Impairment of capitalized software development costs - 2,180 - 1,292 Research and development, net 16,005 14,960 3,980 4,289 Selling and marketing 47,611 42,491 12,519 12,514 General and administrative 4,945 4,673 1,406 1,050 Impairment of software asset acquired from third-party - 937 - 937 In-process R&D and acquisition related costs - 3,530 - 8 Restructuring costs and assets impairment - 2,659 - 1,172 Total costs and expenses 97,466 96,961 25,595 29,606 Operating income (loss) 3,149 (10,704) 1,493 (4,406) Financial income (expense), net (150) 679 (59) 203 Income (loss) before taxes on income 2,999 (10,025) 1,434 (4,203) Taxes on income (409) (212) (163) (171) Income (loss) after taxes on income 2,590 (10,237) 1,271 (4,374) Equity share in net loss of an affiliate company (76) (103) (23) (29) Net income (loss) 2,514 (10,340) 1,248 (4,403) Basic earnings (loss) per share: Net Income (loss) 0.21 (0.94) 0.10 (0.37) Diluted earnings (loss) per share: Net Income (loss) 0.20 (0.94) 0.10 (0.37) Weighted average number of shares outstanding: Basic 12,095,908 11,054,556 12,195,319 11,914,113 Diluted 12,888,014 11,054,556 12,812,669 11,914,113 Company Contact: Tecnomatix Technologies Ltd. Oren Steinberg +972-9-959-4891 Investor Contact: The Ruth Group David Pasquale +1-646-536-7006 DATASOURCE: Tecnomatix Technologies Ltd. CONTACT: Oren Steinberg of Tecnomatix Technologies Ltd., +972-9-959-4891, or ; or Investors, David Pasquale of The Ruth Group, +1-646-536-7006, or Web site: http://www.tecnomatix.com/

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