MatrixOne Announces Update on Financial Review and Restatement; Company Also Provides FY 2005 Financial Update and Sets Expected
17 Ottobre 2005 - 11:30PM
Business Wire
MatrixOne, Inc. (NASDAQ: MONEE) today issued an update on the
Company's previously announced financial review and restatements,
the current estimated range of the related restatements, and the
projected date for the filing of its Quarterly Report on Form 10-Q
for the quarter ended April 2, 2005 ("Form 10-Q") and its Annual
Report on Form 10-K for the fiscal year ended July 2, 2005 ("Form
10-K") with the Securities and Exchange Commission ("SEC"). The
financial review is substantially complete and, as described below,
the restatement primarily affects the timing of revenue
recognition. As a result of the restatement, the Company expects
that approximately $1.0 million of previously recognized revenues
will be reversed and not recognized in a future period. The Company
expects to file its Form 10-Q and Form 10-K on or before the date
of the additional extension granted to the Company by the Nasdaq
Listing Qualifications Panel of November 8, 2005. The Company also
provided a financial update for fiscal 2005 and announced the
expected date for the release of its financial results for the
first quarter of fiscal 2006. Update as to the Company's Previously
Announced Financial Review The financial review conducted under the
direction of the Audit Committee of the Company's Board of
Directors is substantially complete. As previously disclosed in a
press release issued by the Company on April 26, 2005, the Company
commenced the review as a result of the discovered failure by
certain managers and employees of the Company's Japanese subsidiary
to comply with the Company's revenue recognition policies and the
failure by those managers and employees and certain of the
Company's Japanese distributors to provide accurate information to
the Company concerning arrangements included as revenue in the
Company's consolidated financial statements. Accordingly,
management and the Audit Committee concluded that these errors in
revenue recognition required the Company to restate its previously
reported financial results. The restatement affects previously
reported financial results from fiscal 1999 through the second
quarter of fiscal 2005. The revenue adjustments to be made in the
restatement relate to errors in revenue recognition principally at
the Company's Japanese subsidiary and will result in a change in
the timing of the recognition of revenue previously paid for and
recognized. The Company will also make adjustments due to: the
timing of revenue recognition for certain transactions in Europe;
and the timing of revenue recognition related to commitments to
provide future software functionality in several customer
arrangements. The Company will also make adjustments to the timing
of the recognition of certain expenses associated with the revenue
being adjusted. Additionally, as previously disclosed, the Company
will make adjustments to certain other asset and liability
accounts. Expenses to date related to the financial review, audit
and restatement have totaled approximately $5.9 million. The
Company expects that approximately $4.9 million of expenses related
to the financial review, audit and restatement will be recognized
in the fourth quarter of fiscal 2005 and that approximately $1.0
million of expenses related to the financial review and restatement
will be recognized in the first quarter of fiscal 2006. Current
Estimated Range of Related Restatement The restatement affects
previously reported financial results from fiscal 1999 through the
second quarter of fiscal 2005. At this time, the Company's
financial statement close process and audit of the restatement are
not complete and the estimates provided are subject to change. The
following table sets forth the current estimated impact of the
restatement on the Company's previously reported financial results
for fiscal 2003 through the second quarter of fiscal 2005. The
restatement is estimated to increase the Company's accumulated
deficit as of June 29, 2002 by approximately $4.1 million. -0- *T
Six Months Ended Year Ended January 1, 2005 July 3, 2004
--------------------------- --------------------------- Selected
Statement of Operations Data: (in millions, except per Estimated
Range Estimated Range share data) As Reported As Restated As
Reported As Restated ---------------------------
--------------------------- (unaudited) (unaudited) (unaudited)
(unaudited) --------------------------- ---------------------------
Revenues: Software license $26.8 $27.0-$29.0 $38.0 $38.0-$40.0
Service $38.0 $36.0-$38.0 $71.1 $69.5-$71.5 Total Revenues $64.8
$63.0-$67.0 $109.1 $107.5-$111.5 Net Loss ($2.3) ($1.0)-($3.0)
($16.2) ($14.5)-($17.5) Net Loss Per Share ($0.05) ($0.02)-($0.06)
($0.33) ($0.30)-($0.36) Selected Balance Sheet Data: (in millions)
Cash and Cash Equivalents $108.5 unchanged $118.4 unchanged
Accounts Receivable $33.3 $33.2-$33.4 $26.7 unchanged Deferred
Revenue(a) $18.9 $31.0-$33.0 $20.0 $32.0-$34.0 Year Ended June 28,
2003 -------------------------- Selected Statement of Operations
Data: Estimated Range (in millions, except per share data) As
Reported As Restated -------------------------- (unaudited)
(unaudited) -------------------------- Revenues: Software license
$41.1 $37.0-$39.0 Service $68.3 $66.0-$68.0 Total Revenues $109.4
$103.0-$107.0 Net Loss ($24.5)($27.0)-($30.0) Net Loss Per Share
($0.52)($0.57)-($0.63) Selected Balance Sheet Data: (in millions)
Cash and Cash Equivalents $127.7 unchanged Accounts Receivable
$21.7 $21.4-$21.6 Deferred Revenue(a) $17.9 $29.0-$31.0 (a) The
increase in deferred revenue is principally due to the conversion
of all Japanese software license revenue from the residual method
of revenue recognition to a ratable basis over the life of the
related maintenance and customer support services contract. The
increase in deferred revenue also reflects the deferred recognition
of revenue due to commitments to provide future software
functionality in several customer arrangements. *T Update on
Projected Filing Dates for the Company's Form 10-Q and Form 10-K
The Company expects to complete the filing of its Form 10-Q and
Form 10-K on or before November 8, 2005. As part of management's
report on internal controls over financial reporting, the Company
will report material weaknesses in its internal controls over
financial reporting, which will be further described in the
Company's Form 10-K. Upon the filing of these periodic reports, the
Company expects to issue a press release and host a conference call
to discuss the restatement and its final results for the third and
fourth quarters of fiscal 2005. As previously announced by the
Company, the Nasdaq Listing Qualifications Panel granted the
Company an additional extension for continued listing on The Nasdaq
National Market until November 8, 2005 to complete the filing of
its Form 10-Q and Form 10-K. Upon the filing of its Quarterly
Report on Form 10-Q for the quarter ended April 2, 2005 and its
Annual Report on Form 10-K for the fiscal year ended July 2, 2005,
the Company expects to be in compliance with Nasdaq's requirements
for continued listing. The fifth character "E" will remain appended
to the Company's symbol pending a final determination that the
Company is fully compliant with Nasdaq's filing requirements. The
Company anticipates filing as soon as practicable, amended
Quarterly Reports on Form 10-Q for each of the first two quarters
of fiscal 2005 for the purpose of restating its condensed
consolidated financial statements for the first two quarters of
fiscal 2005 and fiscal 2004. MatrixOne Provides Financial Update
for Fiscal Year 2005 The Company today provided a financial update
for its fiscal year ended July 2, 2005. At this time, the Company's
financial statement close process and audit of fiscal 2005 are not
complete and the estimates provided are subject to change. Based on
current preliminary estimates: -- Total revenues for fiscal 2005
are expected to be between $121.0 million and $127.0 million; --
Software license revenues for fiscal 2005 are expected to be
between $46.0 million and $49.0 million; -- Service revenues for
fiscal 2005 are expected to be between $75.0 million and $78.0
million; -- Net loss for fiscal 2005 is expected to be between
$17.0 million and $20.0 million and will include approximately $4.9
million of accounting, audit and legal expenses related to the
financial review, audit and restatement; -- Cash and cash
equivalents as of July 2, 2005 are expected to be approximately
$107.0 million; and -- Deferred revenue as of July 2, 2005 is
expected to be between $38.0 million and $42.0 million. MatrixOne
to Release Financial Results for the First Quarter of Fiscal 2006
The Company announced today that it expects to release financial
results for the first quarter of fiscal 2006 on Thursday, November
10, 2005, after the market closes. The Company's management team
expects to host a live conference call and webcast on that day to
discuss the financial results as well as management's
forward-looking guidance for the second quarter of fiscal year
2006. Conference call details including dial-in information will be
made available in a subsequent press release. About MatrixOne
MatrixOne, Inc. (NASDAQ: MONEE), a leading global provider of
collaborative product lifecycle management (PLM) software and
services, enables companies to accelerate product innovation to
achieve top line revenue growth and improve bottom line
profitability. With world-class PLM solutions and a commitment to
customer success, MatrixOne is focused on helping companies across
the automotive, aerospace & defense, consumer, machinery,
medical device, semiconductor and high-tech industries solve their
most challenging new product development and introduction problems.
More than 800 companies use MatrixOne's solutions to drive business
value and gain a competitive advantage, including industry leaders
such as BAE Systems, Bosch, Comau, General Electric, Honda, Johnson
Controls, Linde AG, NCR, Nokia, Philips, Porsche, Procter &
Gamble, Sony Ericsson, STMicroelectronics and Toshiba. MatrixOne
(www.matrixone.com) is headquartered in Westford, Massachusetts,
with locations throughout North America, Europe and Asia-Pacific.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 - Forward-looking statements in this release do
not constitute guarantees of future performance. Such
forward-looking statements are subject to risks and uncertainties
that could cause our actual results to differ materially from those
anticipated. Such statements relate, among other things, to our
expected compliance with Nasdaq requirements for continued listing,
and the expected magnitude of the adjustments to our financial
statements. The risks and uncertainties that may affect
forward-looking statements include, among others: the continued
listing of our common stock on the NASDAQ Stock Market, unforeseen
issues encountered in the review of our revenue recognition
practices, and the completion of our audit for the restatement
period (commencing fiscal 1999) through the fiscal year ended July
2, 2005. For a more detailed discussion of the risks and
uncertainties of our business, please refer to our periodic reports
and registration statements filed with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the fiscal
year ended July 3, 2004, our Registration Statement on Form S-3
filed on September 29, 2004 as amended, and our Quarterly Report on
Form 10-Q for the fiscal quarter ended January 1, 2005. However,
the financial statements and other financial information therein
may not be relied upon until the restatement process and related
audit are completed. The forward-looking statements included in
this press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments may
cause our views to change. We assume no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein. MatrixOne and the
MatrixOne logo are registered trademarks, and "a leading provider
of collaborative product lifecycle management (PLM) solutions for
the value chain" is a trademark of MatrixOne, Inc. All other
trademarks and service marks are the property of their respective
owners.
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