MALMO, Sweden, April 21, 2004 (PRIMEZONE) -- Telelogic (Stockholm:TLOG), the leading global provider of solutions for advanced systems and software development, today announced first quarter revenues of US $30.7 million (SEK 229.5 million), a US $4.5 million improvement over the first quarter of 2003. This is a 9 percent increase, at constant exchange rates, compared to Q103 when Telelogic revenues were US $26.2 million (SEK 222.7 million).
Pre-tax profit for the first quarter increased significantly to US $2.7 million (SEK 20.2 million) compared to US $-3.2 million (SEK -27.3 million) for Q1 2003. Cash flow for the quarter was also positive at US $5.1 million (SEK 38 million).
Sales of new licenses and maintenance agreements were particularly strong, showing continued growth, totalling US$25.2 million (SEK 188.4 million). This is a 12 percent increase, at constant exchange rates, compared with Q103.
Services revenue for the first quarter amounted to US$5.5 million (SEK 41.0 million), a 4 percent decrease at constant exchange rates, compared with the same quarter the previous year. This follows last year's realignment of the company's professional services operations, to concentrate on higher margin product-related business.
"First quarter was good," said Anders Lidbeck, president and CEO for Telelogic. "Important customer wins, growing revenues, coupled with continued firm cost control, resulted in a 10.7 percent operating margin, US$2.7 million pre-tax profits and US $5.1 million positive cash flow. This provides a solid financial platform -- on top of our strong global market position -- for continued earnings improvements and new customer wins during 2004."
Telelogic's operation in the US realized 19 percent growth compared with the same quarter 2003. And in Asia, Telelogic had a record quarter with 50 percent year-over-year growth, as a result of continued strong license sales. Profitability in both regions continues.
In Europe, revenues have increased 2 percent compared with the same period last year, with a 30 percent smaller -- yet more nimble and focused -- sales organization. Additionally, Telelogic implemented a cost cutting program during the summer of 2003, with a positive effect on profitability. The contribution margin in Europe increased exponentially, from 1 percent for the first quarter 2003 to 32 percent for the first quarter this year.
Telelogic's business in the aerospace/defense segment delivered another strong quarter with 31 percent revenue growth, retaining its position as the company's largest vertical market with 36 percent of sales. During the last two years, sales to this sector have increased from quarter to quarter. Sales in the telecommunications sector have also rebounded, increasing by 10 percent compared to Q103. In addition, sales in the automotive industries remained strong, especially in the US and Asia.
Sales of Telelogic's market-leading requirements management tool, DOORS(R), increased 18 percent, while revenues for SYNERGY(TM) increased with 5 percent, based on growth in the Americas and Asia/Pacific. The TAU(R) product line sales increased 9 percent, driven by the release of TAU Generation2. Having gained significant traction in the Americas, TAU Generation2 now accounts for 31 percent of the TAU product line license revenues.
With an eye on growth, Telelogic continually invests in new product development. During the quarter, Telelogic launched a Unicode version of SYNERGY, supporting Asian character sets to fuel Telelogic's expansion in this region. As of this launch, all Telelogic product lines are available in Asian versions.
Telelogic further improved its requirements-driven solutions with new product integrations that support the entire development lifecycle. In addition, the latest version of TAU Generation2 now offers model-driven code generation capabilities for C++ and Java, opening up new markets beyond Telelogic's traditional focus.
``Our unwaivering commitment to innovation and new product development is generating positive results and should be the catalyst for growth as market conditions improve," said Lidbeck.
Outlook for 2004
The underlying demand in the market is assessed as good. Telelogic expect the market climate to develop well as the investment climate stabilizes and improves.
The company's long range goal is to increase sales by at least 10 percent per year in constant exchange rates. During 2004, this goal will only apply to the company's operations in the Americas and Asia/Pacific. Within this framework, Telelogic also intends to improve its market position in Asia/Pacific, and during the course of the next three years, double its operations there. For operations in EMEA during 2004, improved productivity and profitability are the top priorities. When these goals have been achieved, the company's growth objectives will also include the EMEA operations.
During 2004, the company will focus on further improving operating income to attain its goal of a 20 percent operating margin, excluding goodwill amortizations, as was set in 1999. We expect to reach this goal near the end of 2004.
It is the company's intention that pre-tax profit and cash flow for 2004 shall improve significantly in comparison with the previous year.
Please see attatched the report including all figures.
For additional information and the detailed quarterly report, please refer to: http://www.telelogic.com/investors/financials/reports.cfm
About Telelogic
Founded in 1983, Telelogic(R) is a leading global provider of solutionsfor advanced systems and software development. Telelogic's intuitive,best-in-class software tools automate and support best practicesthroughout the application development lifecycle, leaving developmentteams free to concentrate on core competencies and apply their skillsand energy to value-added tasks. By optimizing each phase ofdevelopment, Telelogic enables companies to deliver higher qualitysystems and software with greater predictability, reduced time-to-marketand lower overall costs.
To ensure interoperability with third-party tools, Telelogic's productsare built on an open architecture and standardized languages. As anindustry leader and technology visionary, Telelogic is actively involvedin shaping the future of advanced systems and software development byparticipating in industry organizations like ETSI, INCOSE, ITU-T, OMGand others.
Headquartered in Malmo, Sweden with U.S. headquarters in Irvine,California, Telelogic has operations in 17 countries worldwide.Customers include Alcatel, BAE SYSTEMS, BMW, Boeing, DaimlerChrysler,Deutsche Bank, Ericsson, General Motors, Lockheed Martin, Motorola, NEC,Nokia, Philips, Siemens, Thales and Vodafone. For more information,please visit www.telelogic.com
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2004/04/21/20040421BIT20090/wkr0001.pdf